Dixon Technologies shares hit 20-month high

Shares of Dixon Technologies Ltd. hit a 20-month high on Thursday, September 28 after its unit, Padget Electronics Pvt., signed a pact with Xiaomi Corp. for manufacturing smartphones and related products at its Noida facility.

Shares of the company rose as much as 1.77%, the most since Jan. 18, 2022, before paring gains to trade 0.33% higher as of 9:57 a.m. This compares to a 0.15% decline in the NSE Nifty 50.

The stock has risen 35.7% on a year-to-date basis. Total traded volume so far in the day stood at 4.1 times its 30-day average. The relative strength index was at 66.6.

Backgrounder
Padget Electronics Private Limited, wholly owned subsidiary of Dixon Technologies India has entered into an agreement with Xiaomi Technology India Private Limited for the manufacturing of smartphones and other related products for Xiaomi. The production will take place at Padget’s manufacturing facility situated in Noida, Uttar Pradesh.

Atul B Lall, Vice Chairman & Managing Director, Dixon Technologies (India) Limited speaking about the partnership with Xiaomi said Dixon is proud it has joined hands with an iconic brand. He is confident that this collaboration will leverage their strong track record of execution, and Xiaomi’s expertise and leadership within the Indian business landscape. Furthermore, he sees it as a significant achievement in the Indian Government’s “Make in India” initiative.

CT Bureau