Shares of Dixon Technologies (India) rose 7 per cent to Rs 13,622 on the BSE on Monday after the company’s wholly-owned subsidiary Padget Electronics entered into an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget’s manufacturing facility situated at Noida, Uttar Pradesh, the company said.
Padget Electronics is one of the few companies who recently received production linked incentive scheme (P/L scheme) approval from the government, the company said.
The stock of the consumer electronics company was trading close to its record high level of Rs 13,907 on December 18, 2020. In the past one year, it has surged 250 per cent, as against a 14 per cent rise in the S&P BSE Sensex.
Dixon Technologies is the largest homegrown design-focused and solutions company engaged in manufacturing of products in the consumer durables, lighting, mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tube lights, downlighters, mobile phones and smartphones, and CCTV, DVRs and medical equipment.
Despite the disruption in operations due to Covid-19 pandemic-led lockdown, Dixon Technologies has witnessed a strong recovery in business post easing of the related curbs as reflected in the 17 per cent year on year (YoY) growth in revenues along with an improvement in the operating profitability in Q2FY2021.
As is prevalent in the industry, the company’s revenues are closely linked to the business plan and performance of its principals. A major part of Dixon Technologies’ revenues and operating profitability is derived from its top three customers—Xiaomi, Samsung and Panasonic, the rating agency ICRA said in recent rating rationale.