Shares of Dixon Technologies rose on September 5 after the company said it has inked a deal with Google to sub-license rights relating to Android and Google TV.
The firm that claims to be the largest manufacturer of LED TVs in India is the first such company in the nation to get the sub-licensing rights relating to Android & Google TV. “This new partnership will enable the company in offering a cost effective, consistent, high quality and out of the box experience to our existing customers and potential new brands which will further strengthen the firm’s market leadership in the LED TV category,” the company said in a filing.
The stock was up 1.97 percent at Rs 4,188 on BSE.
“As the landscape for streaming grows, customer demands call for multiple choices and Dixon’s product offerings are poised to answer such needs,” said Atul B Lall, Vice Chairman & Managing Director.
The stock has fallen 24 percent so far this year amid market sell-off and concerns over valuations. Most analysts are cautious on the stock and see single-digit upside from here.
BOB Capital that has a target price of Rs 4,500 said it expects sustained product addition, customer acquisition and the production linked incentive (PLI) scheme to benefit the company.
“Dixon has incurred capex of Rs 420 crore in FY22 and has a planned outlay of Rs 300-320 crore for FY23. This would be primarily incurred towards expansion of capacities across existing verticals as well as diversifying into new verticals linked to its core business of electronics, backward integration, PLI capex and development of state-of the-art infrastructure,” it said.
ICICI Securities has a target price of Rs 4,200 for the stock.
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