Dixon Technologies Hits 52-Week High on Xiaomi Production Contract

Dixon Technologies Hits 52-Week High on Xiaomi Production Contract

VoM News Desk | September 28, 2023 | 03:32 PM IST | Breaking News | Follow on Google News

Dixon Technologies Hits 52-Week High on Xiaomi Production Contract

Surge in Dixon Technologies Share Price

Dixon Technologies witnessed a remarkable surge in its share price, reaching a 52-week high during Thursday’s trading session. The upswing came in response to the company’s subsidiary, Padget Electronics Pvt Ltd, securing a significant contract with Xiaomi Technology India Pvt Ltd for smartphone production.

Intraday Performance

Dixon Technologies‘ share price opened at ₹5,334.95 on the BSE and reached an intraday high of ₹5,379.85, with a low of ₹5,241.50 during the trading session. Despite some fluctuations, the stock maintained its upward trajectory. Over the past three consecutive sessions, Dixon Technologies’ stock price had been on a positive trend.

Market Analyst’s Perspective

Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, noted the strong momentum in Dixon Technologies’ stock price during the week. While caution is being exercised as the monthly expiry approaches, Bhosale emphasized the overall bullish sentiment surrounding the stock. He suggested that investors consider using market downturns as buying opportunities, with initial support levels expected around ₹5,180 and notable resistance at the ₹5,500 mark.

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Dixon’s Agreement with Xiaomi

Dixon Technologies’ wholly-owned subsidiary, Padget Electronics Pvt Ltd, inked an agreement with Xiaomi to manufacture smartphones and related devices on behalf of Xiaomi. The manufacturing activities will take place at Padget’s production facility in Noida.

Positive Outlook and Government’s ‘Make in India’ Initiative

Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, expressed his pleasure at partnering with Xiaomi and highlighted the significance of this association in line with the Indian Government’s “Make in India” initiative. He expressed confidence in the partnership’s potential for sustainable growth, emphasizing shared values of quality, engineering, expertise, and customer satisfaction.

Furthermore, Lall pointed out that Dixon’s subsidiary, Padget Electronics, is among the few companies to receive approval from the Government of India (GOI) under the PLI (Production-Linked Incentive) scheme.

Financial Performance

Dixon Technologies (India) Ltd reported a robust 47.89% increase in consolidated net profit to ₹67.19 crore for the June quarter, up significantly from ₹45.43 crore in the corresponding period of the previous year. The company also reported a noteworthy 15% YoY increase in consolidated revenue from operations, reaching ₹3,271.50 crore, compared to ₹2,855.07 crore in the same period last year.

Dixon Technologies’ strong financial performance and its strategic partnership with Xiaomi have positioned the company for continued growth and success in the dynamic technology and electronics sector.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.