Archive · 31 Aug 2026
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.
Jefferies rates Kaynes Technology ‘Buy’, while Dixon Technologies and Syrma SGS Technology receive ‘Hold’ ratings.
India’s electronics production rose from about Rs 5.5 lakh crore in FY21 to Rs 12.1 lakh crore in FY26.
The Electronics Components Manufacturing Scheme has approved 106 projects involving roughly Rs 69,500 crore across 14 states.
Jefferies estimates the relevant PCB opportunity at about $7 billion, with 85–90% currently dependent on imports.
The brokerage prefers component-focused companies over assembly-focused Dixon, citing domestic sourcing and future competition.
- Who
- Jefferies and the Indian electronics manufacturing companies Kaynes Technology, Dixon Technologies and Syrma SGS Technology.
- What
- Jefferies published differing ratings on the three companies as India expands domestic electronics and component manufacturing.
- When
- The article discusses developments through FY26 and Jefferies’ EPS outlook for FY26–FY29.
- Where
- India, across projects approved in 14 states.
- Why
- The Electronics Components Manufacturing Scheme is intended to reduce import dependence and build a domestic electronics-component supply chain.
- 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.