Dixon Technologies share price touch 52-week high as arm signs contract with Xiaomi for smartphone production

Dixon Technologies share price rose nearly 2% and touched 52-week high on Thursday's trade following the company's arm's signing of a contract with Xiaomi Technology India Pvt Ltd for the production of smart phones. Dixon share price opened at ₹5,334.95 apiece on BSE and hit intraday high at ₹5,379.85 and low at ₹5,241.50. Dixon Technologies shares during Thursday's session slipped into the red zone. For last three straight sessions, Dixon Technologies stock price saw gains.

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, this week has witnessed robust momentum in the stock price, resulting in significant outperformance.

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"Nonetheless, as we approach the monthly expiry, there is a degree of caution evident at elevated levels. Nevertheless, the overall sentiment remains bullish, and investors should maintain a positive outlook on this stock. Utilising downturns as buying opportunities is recommended, with initial support levels expected around 5,180, while resistance is notable at the 5,500 mark," said Bhosale.

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According to a filing with the exchange, the company's wholly owned subsidiary, Padget Electronics Pvt Ltd, has signed an agreement with Xiaomi to manufacture smartphones and other related devices on its behalf. At Padget's production plant in Noida, the manufacturing will take place.

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Speaking about this association, Atul B. Lall, Vice Chairman & Managing Director, Dixon Technologies said "it gives us an immense pleasure to partner with Xiaomi which is an iconic brand. We are delighted and encouraged by the trust they have reposed on Dixon for the association and believe that this association will leverage our excellence, superior execution track record and Xiaomi’s expertise & leadership in Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India” initiative.

We see them as an ideal strategic partner who shares our core values: quality, engineering, prowess and customer satisfaction. We are confident this is just a beginning of a long and prolific relationship and there is immense potential to further build on shared capabilities to deliver sustainable growth,"

He further stated that, “Dixon’s wholly owned subsidiary, Padget Electronics is one of the few Companies who have received PLI scheme approval from the Government of India (GOI).”

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Dixon Technologies (India) Ltd reported a 47.89% rise in consolidated net profit to ₹67.19 crore for the June quarter, up 48% from ₹45.43 crore in the year- ago period.

The company reported a 15% YoY (year-on-year) rise in consolidated revenue from operations at ₹3,271.50 crore against ₹2,855.07 crore year ago.

Also Read: Dixon Technologies Q1 net profit rises 48% to ₹67.19 crore, revenue up 15%