Shares of Dixon Technologies Ltd. are buzzing in trade on Wednesday amid media reports that claim the government will soon grant the approval for its joint venture with Vivo. The stock is trading at Rs 12,755, accounting for gains of around 4.25% compared to Tuesday's closing price.
This comes on the back of an NDTV Profit report on Tuesday, which pointed to an inter-ministerial committee granting approval to the Vivo JV after a meeting on Saturday, though the approval has not been confirmed by the government.
This has led to a lot of optimism around the stock, as the approval of the JV could lead to a Rs 30,000 crore revenue opportunity for the company and could uplift mobile volumes by 22 million units. About 67% of Vivo's production could be moved to the JV.
Following the media reports, JPMorgan came out with a note on Dixon Tech, maintaining an 'overweight' rating on the counter while calculating a fair value of Rs 15,100 should the JV get approved officially.
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