Dixon Technologies share price at record high on new agreement and capacity launch

Dixon Technologies share price gained more than 2% on Monday to hit an all-time high on NSE after the company announced signing a contract manufacturing agreement with Compal Smart Device India.

In a filing to the stock exchanges, the electronics manufacturing services provider said that its wholly owned subsidiary, Padget Electronics Private Limited, has entered into a Contract Manufacturing Agreement (CMA) with Compal Smart Device India.

Dixon Technologies will manufacture mobile phones for Compal Smart Device and its designated customers.

After the announcement, Dixon Technologies share price soared as much as 2.62% to a lifetime high of ₹7,048 per share on NSE in morning trade on Monday. However, the shares pared early gains to trade 1.79% higher at ₹6990.25 a piece at 1:03 pm.

Compal Smart Device India is a global leader in technological products, among the leading manufacturers of notebooks, PCs, smart devices, data centre equipment and LCD products. The company offers world-class research and development, manufacturing and supply chain management for electronics goods.

"It gives us immense pleasure to partner with a global leader of technological products ', Compal, for manufacturing mobile phones. This association will give a strong impetus to India's manufacturing competitiveness," said the Vice Chairman and Managing Director of Dixon Technologies, Atul B Lall, in a press release on February 23, 2024.

In a separate stock exchange filing the company also said on Friday that it launched a new manufacturing factory in Dehradun, Uttarakhand, which is anticipated to generate employment opportunities for more than 1,000 people. The company informed that the new manufacturing unit has an annual production capacity of 24 lakh washing machines. The factory is poised to stimulate local businesses, attract investments, and contribute significantly to the region's revenue, said the company in a press release.

"The new plant will enable us to deliver high-quality output to our customers in the domestic and international markets at an accelerated rate. We are very proud to have opened a future-oriented production facility here in Dehradun," said Sunil Vachani, the Executive Chairman of Dixon Technologies