Large cap stock jumps 10% after company signs MoU with Acerpure to manufacture consumer products
In a surprising turn of events, Dixon Technologies Ltd, India’s second-largest mobile phone manufacturer, saw a significant surge in its share price by almost 10% in early trade on Friday, reaching a 52-week high of ₹9,064 per share. This spike came after the company announced a Memorandum of Understanding (MoU) with Acerpure for the manufacturing of a range of consumer appliance products.
As of Friday morning, Dixon Technologies Ltd shares were trading at ₹9,006 per share, up ₹755.80 or 9.16% from the previous close. The company’s market capitalization stands at ₹53,918 crore.
Under the MoU with Acerpure, Dixon Technologies will be responsible for manufacturing Acerpure products, starting with cutting-edge TVs, in its facilities. This collaboration marks a significant step for both companies in the consumer appliance market.
Dixon Technologies currently operates 17 manufacturing facilities spanning 2.5 million square feet, with plans to expand to 23 plants totaling 4.8 million square feet by FY 2024. The company recently inaugurated a new manufacturing unit in Dehradun, Uttarakhand, focused on producing washing machines with an annual capacity of 24 lakhs.
The company’s growth trajectory has been impressive, with its shares surging by 66% in the past six months and a staggering 204% over the last year. In Q4 FY24, Dixon Technologies reported a 52% increase in revenue, reaching ₹4,658 crores, and a 21% rise in net profit from ₹80 crores to ₹97 crores.
DailyBubble sees Dixon Technologies Ltd as a key player in the consumer durables, lighting, and mobile phone markets in India. With a diverse product portfolio that includes consumer electronics, home appliances, lighting products, and mobile phones, the company holds significant market shares in various segments. Additionally, Dixon Technologies Ltd is recognized as a leading LED light manufacturer globally, further solidifying its position in the industry.
In conclusion, DailyBubble views the partnership between Dixon Technologies Ltd and Acerpure as a strategic move that will strengthen both companies’ positions in the competitive consumer appliance market. The growth and success of Dixon Technologies Ltd reflect its commitment to innovation and excellence in manufacturing, making it a key player to watch in the industry.