Dixon Technologies’ stock jumps 4% following report of Google Pixel deal

Dixon Technologies Hits Record High as Company Set to Manufacture Google Pixel 8 Smartphones in India

Shares of Dixon Technologies surged to a record high on Wednesday, jumping as much as 4% after reports surfaced that the Noida-based contract manufacturer is set to produce Google Pixel 8 smartphones in the country. The news comes after Dixon’s managing director and vice chairman, Atul Lall, announced that manufacturing for a global brand through Compal is expected to begin by September 24.

The market reacted positively to the development, with Dixon’s stock rising 3.9% in opening trade to reach an all-time high of ₹9,484.30 on the BSE. The company’s market cap surpassed ₹55,000 crore as investors showed confidence in its growth prospects. Dixon’s shares have seen a remarkable 43% increase in 2024 and a staggering 185% surge over the past year.

Last year, Google had revealed plans to manufacture Pixel 8 smartphones in India, citing the country’s robust manufacturing ecosystem. Dixon’s partnership with Xiaomi for manufacturing and exporting mobile phones has also been successful, contributing to its strong financial performance.

For the fourth quarter, Dixon reported consolidated revenues of ₹4,675 crore, marking a 52% growth from the year-ago period. The company’s EBITDA and profit also saw significant increases, reflecting its strong operational performance. Looking ahead, Dixon is optimistic about its growth prospects, with plans to ramp up production for Motorola and Xiaomi smartphones in the coming months.

Atul Lall expressed confidence in Dixon’s ability to sustain revenue growth and attract new customers across its businesses. With a solid balance sheet and a focus on long-term development, Dixon Technologies is well-positioned to capitalize on the growing demand for smartphones in India and beyond.