Dixon shares soar over 9% after smartphone plant launch in Noida

Shares of Dixon Technologies rallied more than 9 percent in trade on December 1 after the launch of a smartphone manufacturing plant in Noida. At 2:01 pm, the stock was trading at Rs 6006.7 on the NSE.

Dixon Technologies subsidiary Padget Electronics has opened a smartphone manufacturing facility in the Noida, Uttar Pradesh, and it has started production of smartphones for global technology giant Xiaomi, according to an exchange filing on November 30.

The Noida plant is built across 2.7 lac square feet and has an annual capacity of making 25 million units. The plant represents a significant stride in India’s efforts to bolster its footprint in local smartphone manufacturing the notification said.

“It’s a momentous step towards our commitment of boosting local smartphone manufacturing system in India. We believe that this association will leverage our excellence and superior execution and Xiaomi’s expertise and leadership in Indian business ecosystem,” Sunil Vachani, executive chairman of Dixon Technologies, said at the opening ceremony.

Brokerage firm ICICI Securities has assigned a ‘reduce’ rating to the Dixon Technologies stock with a target price of Rs 4,900 in a recently released report. “The mobile segment remains strong with weakness in other segments,” it argued.

The Dixon Technologies stock has given a return of 41.04 percent over the last six months. The benchmark Nifty50 index has given a return of 8.90 percent over the same duration. Moneycontrol