The company’s unit Padget Electronics is engaged in the business of manufacturing mobile phones and information technology (IT) hardware as its core business activity, and the said production of Google Pixel smartphones is set “to commence at the plant of Padget Electronics situated at Sector-68, Noida,” Dixon Technologies’ exchange filing said.
According to brokerage firm Nomura, Dixon Technologies aims to add another global brand to its portfolio in the coming months. “The Google Pixel range, priced between Rs 32,000 and Rs 1.72 lakh in India, has historically seen limited volumes of less than 1 million units annually. The market has been primarily served by Wowtek Technology, a subsidiary of Bharat FIH (part of the Foxconn group),” the brokerage said.
Nomura believes with Dixon entering as an additional manufacturing partner, it is set to capture a major share of Pixel’s India business, particularly for the affordable A-series models, which constituted about 65% of Pixel’s India sales in 2023.
“In our view, while volumes are low, realisations will be significantly better at about Rs 25-26K per unit for Dixon, compared to current average realisations of about Rs 9K per unit. Hence, assuming a about 60% SOB, we estimate it can potentially add Rs 15 billion of revenues, about 4% of FY26 smartphone sales depending on ramp-up, which is likely to be gradual. Moreover, we think it will showcase Dixon’s capabilities to make premium phones and will be a key longer-term positive,” the brokerage said.
Nomura said it overall expects Dixon to be a key beneficiary of strong traction from its mobile customers and addition of new clients and produce 47 million smartphones in FY27. Thus, its smartphone revenues should touch Rs 412 billion by FY27, implying a 28% CAGR over FY25-27, and contributing 66% to its FY27F overall revenue, the brokerage added.The brokerage maintained its “Buy” rating on the company’s stock at a target price of Rs 18,654.Also read | Fitch downgrades Azure Power U.S. dollar bond outlook to negative amid Adani bribery probe
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