Dixon Technologies share price jumped by 7 percent today as the company announced MOU between ASUS and its subsidiary Padget Electronics. Dixon Technologies stock was trading Rs 13,970 (up by 7.4 percent) at the time of publication of this report. The stock touched intraday high of Rs 14,056 and low of Rs 13,050. Dixon stock has touched 52-week high as well.

This collaboration will see Padget manufacturing IT products, such as notebooks, for the global tech giant. With Dixon poised to capture a significant share of India’s mobile market, analysts project substantial growth, bolstered by the firm’s export potential. Japanese brokerage firm Nomura has backed this optimism with a strong buy rating. This new partnership underscores Dixon’s strategic positioning in India’s burgeoning tech manufacturing landscape.

Dixon Technologies' Shares Surge on Strategic Partnership

Stock Jumps 6% Amid Partnership Announcement

On Monday, Dixon Technologies’ stock surged by 6% during intra-day trading, hitting a new high of ₹13,848.10 on the BSE. This rise came on the heels of a crucial memorandum of understanding (MoU) between its subsidiary, Padget Electronics, and Asus India. The collaboration will involve Padget manufacturing notebooks and other IT products for the Taiwanese tech giant, a move seen as transformative for Dixon’s business model.

Padget Electronics: Key Growth Driver for Dixon

Padget to Manufacture IT Products for Asus

Padget Electronics, a wholly owned subsidiary of Dixon Technologies, signed an MoU with Asus India to produce a range of IT products, including notebooks. This partnership is set to position Dixon as a key player in the electronics manufacturing space, expanding its reach into high-demand consumer tech products.

Potential to Capture Over 30% of India’s Mobile Market by FY27

Dixon’s potential isn’t limited to notebooks. The company is eyeing a significant share of India’s mobile phone market, with expectations to capture over 30% by FY27. In addition to its domestic growth, Dixon is also expected to see a boost from exports, which will further strengthen its revenue streams in the coming years.

Stock Performance and Historical Context

Previous Stock Split Drives Increased Investor Participation

Prior to the current surge, Dixon’s stock had previously touched ₹20,000 per share. However, in 2021, the company carried out a stock split, dividing one share of ₹10 into five shares of ₹2 each. This move made the stock more accessible to a broader range of investors and helped drive increased market activity.

Nomura Initiates 'Buy' Rating With Price Target of ₹15,567

Japanese brokerage firm Nomura recently initiated coverage on Dixon Technologies with a strong ‘Buy’ recommendation. The brokerage set a target price of ₹15,567 per share, citing the company's strategic gains from increased localisation in mobile phone manufacturing and IT hardware production. This endorsement reflects the growing confidence in Dixon's ability to capitalise on India’s evolving tech manufacturing sector.

Asus India: A Global Technology Leader

Asus Known for High-Quality IT Products

Asus, a multinational technology company, is globally renowned for producing some of the highest-quality IT products, including motherboards, personal computers, and gaming laptops. The company is one of the top-three vendors in the consumer notebook market. This partnership with Dixon further cements Asus’ commitment to leveraging India’s manufacturing capabilities for global growth.

Expanding Influence in the Indian Market

Asus’ collaboration with Padget underscores the growing importance of India as a manufacturing hub for global technology giants. By partnering with Dixon Technologies, Asus gains access to the rapidly expanding Indian electronics market, further strengthening its position as a leader in IT hardware and consumer electronics.