Multibagger electronics stock rises 5%, hits record high; here's why 

Shares of Dixon Technologies rose to their fresh record high, rising nearly 5% in early deals today. Dixon Technologies stock gained 4.90% to Rs 16,580 on BSE. Market cap of the firm stood at Rs 93,927 crore. The stock rose after the company said its wholly owned subsidiary, Padget Electronics Pvt Ltd, in collaboration with Compal Smart Device India Pvt Ltd, plans to commence mass production of Google Pixel smartphones for Compal's client, Google Information Services India Pvt Ltd.

Turnover rose to Rs 15.77 crore as 9653 shares of the firm changed hands on BSE. In terms of technicals, the relative strength index (RSI) of Dixon Technologies stands at 61.8, signaling it's trading neither in the overbought nor in the oversold territory. Shares of Dixon Technologies are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages. 

The multibagger stock has clocked stellar returns of 177.54% in a year and gained 156.13% in 2024.  In two years, the stock is up 277%. 

Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies said, “We together with our customer Compal Group, one of the world's leading manufacturers of smart devices, are excited to launch production of Google Pixel (Smart phones) for ‘Google Information Services India Private Limited’, a designated customer of Compal, a brand synonymous with innovation and excellence in technology. This is a significant opportunity for Dixon and marks an exciting step in our growth and commitment to delivering cutting edge, high quality products to global and domestic market. Through this launch, Dixon shall be leveraging its state of the art facilities, effective manufacturing techniques and workforce and this also highlights the immense potential of India’s electronics manufacturing sector in global scenario.”

Padget Electronics Private Limited is a wholly owned subsidiary of Dixon Technologies (India) Limited engaged in the business of manufacturing of mobile phones and IT hardware as its core business activity.

Dixon Technologies clocked a stellar set of earnings for the quarter ended September 2024. Net profit climbed 265% year-on-year for the September 2024 quarter. Profit rose to Rs 412 crore amid exceptional gain of Rs 209.6 crore and an increase in mobile phone production. Profit in Q2 of last fiscal stood at Rs 113.36 crore. Revenue rose 133% to Rs 11,534 crore in the July-September period compared to Rs 4,944 crore a year ago. Earnings before interest, tax, depreciation and amortization (EBIDTA) stood at Rs 420 crore, up 110 percent year-on-year.

Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.