Shares of Dixon Technologies surged by 4.17% to ₹16,467.25 in Monday’s trade after the company announced that its subsidiary, Padget Electronics Pvt Ltd, would commence mass production of Google Pixel smartphones at its Noida facility. The partnership marks a significant milestone under the global China+1 supply chain strategy.
Key Highlights
- Partnership with Compal Smart Device India Pvt Ltd: Padget Electronics, a wholly-owned subsidiary of Dixon, has entered into a manufacturing agreement with Compal to produce smartphones for Google Information Services India Pvt Ltd.
- Facility: The production will be carried out at Padget Electronics’ state-of-the-art manufacturing plant in Noida.
- Strategic Significance: This move positions Dixon as a key player in premium smartphone manufacturing and reinforces its role in the global shift toward diversified supply chains.
Brokerage View
Nomura reiterated its Buy rating on Dixon Technologies with a target price of ₹18,654, citing the Google partnership as a major growth driver.
- Revenue Projection: Nomura estimates that this partnership could generate ₹15 billion in revenue, accounting for approximately 4% of FY26 smartphone sales.
- Strategic Benefits: The collaboration with Google highlights Dixon’s capability to handle premium smartphone manufacturing, boosting its long-term prospects.
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