Dixon shares rally over 6% as unit signs deal to make Google Pixel smartphones
Dixon Technologies shares surged as much as 6.4% on Monday to Rs 16,819.45 on BSE after the electronics manufacturer said its wholly-owned unit, Padget Electronics, in partnership with Compal Smart Device India, has commenced mass production of Google Pixel smartphones.
The company’s unit Padget Electronics is engaged in the business of manufacturing mobile phones and information technology (IT) hardware as its core business activity, and the said production of Google Pixel smartphones is set “to commence at the plant of Padget Electronics situated at Sector-68, Noida,” Dixon Technologies’ exchange filing said.
According to brokerage firm Nomura, Dixon Technologies aims to add another global brand to its portfolio in the coming months. “The Google Pixel range, priced between Rs 32,000 and Rs 1.72 lakh in India, has historically seen limited volumes of less than 1 million units annually. The market has been primarily served by Wowtek Technology, a subsidiary of Bharat FIH (part of the Foxconn group),” the brokerage said.
Nomura believes with Dixon entering as an additional manufacturing partner, it is set to capture a major share of Pixel's India business, particularly for the affordable A-series models, which constituted about 65% of Pixel's India sales in 2023.
“In our view, while volumes are low, realisations will be significantly better at about Rs 25-26K per unit for Dixon, compared to current average realisations of about Rs 9K per unit. Hence, assuming a about 60% SOB, we estimate it can potentially add Rs
