Dixon Technologies shares gain 6%, mcap hits Rs 1 lakh cr mark; here's why

Shares of Dixon Technologies Ltd surged over 6% on Tuesday after a report claimed that Alphabet, the parent company of Google, has started talks with contract manufacturers Dixon Technologies and Foxconn to shift a significant portion of its global Pixel smartphone production from Vietnam to India. 

Dixon Technologies shares zoomed 6.12% to Rs 16,975.80 against the previous close of Rs 15,823.55 on BSE. Market cap of the firm rose to Rs 1 lakh crore. The multibagger stock has gained 112% in a year and gained 467% in two years. The stock surged a huge 1,878% in the last five years 

Shares of Dixon Technologies are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The relative strength index (RSI) of Dixon Technologies stands at 67.4, signaling it's trading in the neither in the overbought nor in the oversold territory.

According to a report by The Economic Times, this move forms part of Alphabet’s strategy to diversify its supply chain and reduce risks from geopolitical tensions. Recently, US proposed steep tariffs on imports from Vietnam, Pixel’s current primary production base. It imposed a 46% levy compared with 26% on India. While President Donald Trump has paused fresh reciprocal tariffs for 90 days, the baseline 10% duty remains unchanged.

Currently, Pixel smartphones manufactured in India are meant for the domestic market, where import duties stand at 16.5%. Dixon in Noida and Foxconn in Tamil Nadu assemble the devices with the former producing newer models and the latter focusing on older ones.

Dixon accounts for nearly 70% of the Pixels made in India, while Foxconn was the first to begin production here in August 2023.

Dixon Technologies logged a strong set of earnings for the quarter ended December 2024. Net profit climbed 124% year-on-year to Rs 217 crore. Profit in Q3 of the last fiscal stood at Rs 97 crore. 

Revenue climbed 117% to Rs 10,461 crore in the December 2024 quarter. Dixon Technologies' EBITDA more than doubled to Rs 398 crore in the October-December quarter.

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.