Dixon Technologies Shares Hit Record High On Factory Launch
Its wholly owned subsidiary has also signed an agreement with Compal Smart Device to manufacture mobile phones.
Shares of Dixon Technologies (India) Ltd. rose over 2% to an all-time high on Monday after it launched a new factory in Dehradun for manufacturing of washing machines.
The manufacturing unit at an industrial area in Selaqui has an annual production capacity of 24 lakh washing machines per year, according to an exchange filing on Friday.
Moreover, the company's wholly owned subsidiary, Padget Electronics Pvt., has signed a contract manufacturing agreement with Compal Smart Device India Pvt. to manufacture mobile phones, it said.
"Compal is a large tie-up," Dixon Managing Director Atul Lall told NDTV Profit in an interview. "We will be manufacturing high-end devices for a large global brand, initially, for the domestic market and then finally for exports."
Dixon's stock rose as much as 2.63% during the day to Rs 7,048 apiece on the NSE. It was trading 1.91% higher at Rs 6,998.95 per share, compared to a 0.48% decline in the benchmark Nifty 50 at 11:45 a.m.
The share price has risen 150.83% in the last 12 months. The total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 77.45.
Eighteen out of the 29 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and seven suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 7.9%.