The corporate’s unit Padget Electronics is engaged within the enterprise of producing cell phones and knowledge know-how (IT) {hardware} as its core enterprise exercise, and the stated manufacturing of Google Pixel smartphones is about “to start on the plant of Padget Electronics located at Sector-68, Noida,” Dixon Applied sciences’ trade submitting stated.
In accordance with brokerage agency Nomura, Dixon Applied sciences goals so as to add one other international model to its portfolio within the coming months. “The Google Pixel vary, priced between Rs 32,000 and Rs 1.72 lakh in India, has traditionally seen restricted volumes of lower than 1 million models yearly. The market has been primarily served by Wowtek Expertise, a subsidiary of Bharat FIH (a part of the Foxconn group),” the brokerage stated.
Nomura believes with Dixon coming into as an extra manufacturing accomplice, it’s set to seize a serious share of Pixel’s India enterprise, notably for the reasonably priced A-series fashions, which constituted about 65% of Pixel’s India gross sales in 2023.
“In our view, whereas volumes are low, realisations shall be considerably higher at about Rs 25-26K per unit for Dixon, in comparison with present common realisations of about Rs 9K per unit. Therefore, assuming a about 60% SOB, we estimate it could doubtlessly add Rs 15 billion of revenues, about 4% of FY26 smartphone gross sales relying on ramp-up, which is prone to be gradual. Furthermore, we predict it would showcase Dixon’s capabilities to make premium telephones and shall be a key longer-term optimistic,” the brokerage stated.Nomura stated it general expects Dixon to be a key beneficiary of robust traction from its cellular clients and addition of recent purchasers and produce 47 million smartphones in FY27. Thus, its smartphone revenues ought to contact Rs 412 billion by FY27, implying a 28% CAGR over FY25-27, and contributing 66% to its FY27F general income, the brokerage added.The brokerage maintained its “Purchase” score on the corporate’s inventory at a goal value of Rs 18,654.Additionally learn | Fitch downgrades Azure Energy U.S. greenback bond outlook to unfavorable amid Adani bribery probe
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Occasions)
