Introduction
India’s electronics manufacturing industry is experiencing a major transformation, EMS stocks are set to soar thanks to the government’s ₹23,000 crore Production Linked Incentive (PLI) scheme. accelerates the growth of the electronics manufacturing sector.
Designed to boost domestic production of key electronic components, this initiative aims to reduce import dependency, create nearly 91,600 direct jobs, and strengthen India’s position as a global electronics hub.
For investors, this is a golden opportunity. With financial incentives driving growth, several Electronics Manufacturing Services (EMS) companies are set to benefit significantly.
If you’re looking for high-potential stocks in the electronics sector, here are five EMS stocks that could see strong growth in the coming years.
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Key Takeaways:
Long-Term Outlook – With India pushing to become a global manufacturing hub, EMS stocks offer significant potential for long-term investors.
PLI Scheme’s Impact – The ₹23,000 crore initiative will boost local production of critical electronic components, reducing India’s reliance on imports.
Growth in EMS Sector – Companies engaged in PCB manufacturing, display modules, and semiconductor-related production stand to gain the most.
Top Stock Performers – Dixon Technologies, Kaynes Technology, Syrma SGS, Atul Auto, and Sterling & Wilson are leading the charge.
Investor Opportunities – These stocks have shown strong financial growth and are well-positioned to benefit from rising demand in the electronics industry.
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1. Dixon Technologies (India) Limited
- Market Cap: ₹84,231 crores
- Stock Performance: Surged 1.6% to ₹14,124.95
- Q3 FY25 Revenue Growth: 117% YoY
- Q3 FY25 Net Profit Growth: 122.7% YoY
Dixon Technologies is one of the largest EMS players in India, known for its manufacturing expertise in consumer electronics, home appliances, and telecom products.
The company has ventured into semiconductor assembly and has formed strategic partnerships, including a joint venture with Japan’s Rexam for manufacturing Printed Circuit Boards (PCBs) for air conditioners.
The PLI scheme prioritizes local production of critical electronic components like PCBs, creating strong growth opportunities for Dixon Technologies. Rising domestic demand and government financial incentives will drive the company’s expansion.
2. Kaynes Technology India Limited
- Market Cap: ₹31,055 crores
- Stock Performance: Surged 5.3% to ₹4,885
- Q3 FY25 Revenue Growth: 30% YoY
- Q3 FY25 Net Profit Growth: 46.6% YoY
Kaynes Technology specializes in designing and manufacturing advanced electronic modules for industries ranging from automotive to aerospace. With India’s push for domestic semiconductor and PCB manufacturing, Kaynes is well-positioned to capitalize on the expanding market for locally made electronic components.
The company’s recent growth, coupled with its focus on innovation and advanced manufacturing, makes Kaynes a solid contender for investors looking to gain exposure to India’s electronics sector.
3. Syrma SGS Technology Limited
- Market Cap: ₹8,345 crores
- Stock Performance: Surged 1.6% to ₹475.6
- Q3 FY25 Revenue Growth: 23% YoY
- Q3 FY25 Net Profit Growth: 165% YoY
Syrma SGS Technology manufactures a variety of electronic sub-assemblies, including memory modules, power supplies, and RFID products.
As the demand for locally produced electronic components increases, Syrma is poised to benefit from the government’s focus on electronics manufacturing under the PLI scheme.
The company’s impressive profit growth and expanding product portfolio make it a compelling choice for investors interested in the EMS sector.
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4. Atul Auto Limited
- Market Cap: ₹5,545 crores
- Stock Performance: Increased 2.8% to ₹1,195
- Q3 FY25 Revenue Growth: 22% YoY
- Q3 FY25 Net Profit Growth: 32% YoY
Atul Auto, primarily known for its automobile manufacturing, has started diversifying its business by incorporating electronics in its production.
The company’s move into the automotive electronics sector could benefit significantly from the PLI scheme’s focus on local production, particularly in areas like electric vehicle components and energy-efficient solutions.
5. Sterling and Wilson Private Limited
- Market Cap: ₹6,612 crores
- Stock Performance: Up 4.1% to ₹1,056
- Q3 FY25 Revenue Growth: 18% YoY
- Q3 FY25 Net Profit Growth: 26% YoY
Sterling and Wilson is a diversified EMS company providing services in solar energy, energy storage, and industrial automation.
With the PLI scheme driving electronics growth, Sterling and Wilson’s push into energy-efficient electronics and renewable technologies could put them in the sweet spot for future growth.
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Conclusion
The PLI scheme prioritizes local production of critical electronic components like PCBs, creating strong growth opportunities for Dixon Technologies. Rising domestic demand and government financial incentives will drive the company’s expansion.
For investors looking @Techovedas to tap into India’s booming electronics manufacturing sector, these EMS stocks offer a promising avenue for potential growth and returns.
Contact us at [email protected] to explore opportunities today!
