3 EMS stocks to benefit as India’s ₹23,000 Cr PLI Scheme Drives Electronics Manufacturing Growth

The Ministry of IT has finalised a Production Linked Incentive (PLI) scheme aimed at boosting the manufacturing of electronic components in India. With an allocation of ~Rs. 23,000 crores, for a total period of six years, this initiative follows the successful localisation of smartphone assembly in the country and is part of the government’s broader effort to enhance domestic value addition in the electronics sector. 

According to reports, the scheme will focus on promoting the production of key electronic components such as display modules, sub-assembly camera modules, printed circuit board assemblies, lithium cell enclosures, resistors, capacitors, ferrites, and more. 

Additionally, the government anticipates that this initiative will generate around 91,600 direct jobs over the six-year period. The annual incentive payouts under the scheme are expected to range between Rs. 2,300 crore and Rs. 4,200 crore, contingent on companies meeting specific investment, production, and employment targets for each year. 

Following are a few stocks in focus after the new PLI scheme for electronics manufacturing: 

1. Dixon Technologies (India) Limited 

With a market cap of Rs. 84,231 crores, the stock surged nearly 1.6 percent to Rs. 14,124.95 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 117 percent to Rs. 10,454 crores, while the net profit grew by nearly 122.7 percent YoY to Rs. 216 crores. 

Incorporated in 1993, Dixon Technologies is primarily involved in the manufacturing of electronic goods such as consumer durables, home appliances, lighting products, mobile phones, refrigerators, telecom products, hearables & wearables, and security devices. 

The company has multiple partnerships and subsidiaries with various investments underway to start full-fledged operations for semiconductors. It uses semiconductors in the assembly of devices like mobile phones, ACs, and fridges. The company has a 40-60 joint venture with a Japanese company, Rexxam Dixon Electronics Private Limited, to manufacture Printed Circuit boards for ACs.

Also read: 5 Defence stocks to benefit as DAC approves ₹54,000 Cr defence acquisitions to strengthen India’s military

2. Kaynes Technology India Limited 

With a market cap of Rs. 31,055 crores, the stock surged nearly 5.3 percent to Rs. 4,885 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 30 percent to Rs. 661 crores, while the net profit grew by nearly 46.6 percent YoY to Rs. 66 crores. 

Kaynes Technology India Limited is primarily engaged in the design and manufacturing of advanced electronic modules and solutions catering to a wide range of industries. It is well-positioned to benefit from growth in ESDM, semiconductor, and PCB markets. 

3. Syrma SGS Technology Limited 

With a market cap of Rs. 8,345 crores, the stock surged nearly 1.6percent to Rs. 475.6 on Friday. In Q3 FY25, the company’s revenue from operations increased by around 23 percent to Rs. 869 crores, while the net profit grew by nearly 165 percent YoY to Rs. 53 crores. 

Syrma SGS Technology Limited is engaged in the business of manufacturing various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies/adapters, fibre optic assemblies, magnetic induction coils and RFID products and other electronic products. 

Written by Shivani Singh

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