Shares of Dixon Technologies (India) rose nearly 6 pecent to a 52-week high of Rs 16,739 on November 29 after its wholly-owned subsidiary, Padget Electronics, announced plans to commence mass production of Google Pixel
At 9.30 AM, Dixon Tech's shares were up over 4 percent at Rs 16,482. Year-to-date, Dixon Tech's stock has delivered a stellar 150 percent return, far outpacing the Nifty 50's 11 percent gain.
Nomura maintained its 'Buy' rating on Dixon Tech with a target price of Rs 18,654, implying an upside potential of 18 percent from the stock's previous closing price of Rs 15,807.
According to Nomura, "Dixon will have a significant share of business (SOB) of the Pixel in India, especially the relatively affordable A series, which contributed around 65 percent to Pixel's India sales in 2023.
In our view, while volumes are low, realisations will be significantly better at Rs 25,000 - Rs 26,000 per unit for Dixon, compared to current average realisations of Rs 9,000 per unit."
Additionally, the brokerage firm believes the move positions Dixon Tech as a strong contender for premium smartphone production, particularly as manufacturers shift away from China due to geopolitical tensions.