2 days ago

Jefferies Favors Kaynes as India Advances Electronics Component Manufacturing

India already assembles most of the mobile phones sold from its factories.

However, it still imports many of the parts used inside those phones.

A new government program is designed to help companies make more components in India.

Printed circuit boards, or PCBs, are one important opportunity.

Jefferies thinks component makers could benefit more than companies that mainly assemble phones.

It rates Kaynes Technology as Buy.

It rates Dixon Technologies and Syrma SGS Technology as Hold.

Jefferies also says companies must execute their plans successfully for the expected growth to happen.

Key facts

Jefferies rating: Buy for Kaynes Technology; Hold for Dixon Technologies and Syrma SGS Technology.
India electronics production: Rose from approximately Rs 5.5 lakh crore in FY21 to Rs 12.1 lakh crore in FY26.
Approved ECMS projects: 106 projects approved from 249 initial applications.
Approved investment: Approximately Rs 69,500 crore across 14 states.
PCB opportunity: Estimated relevant market of about $7 billion, with 85–90% currently dependent on imports.
Syrma stock performance: The stock gained approximately 105% year-to-date and traded at about 57 times one-year forward earnings.
EMS earnings outlook: Jefferies estimates an average 27% EPS CAGR for EMS companies between FY26 and FY29.

financialexpress.com · 2 days ago