In today’s fast-paced world, electronic manufacturing companies are the backbone of technological progress. They produce the devices we use daily, from smartphones to home appliances. Their innovative technologies make communication, work, and entertainment more accessible. In this article, we will see some of the best EMS stocks in India.
These companies drive economic growth by creating jobs and supporting industries. Additionally, they foster technological advancements, improving efficiency in healthcare, education, and transportation. With continuous innovation, electronic manufacturers shape our connected world, simplifying tasks and enhancing convenience.
As a result, they significantly impact our lives, making technology more reliable and affordable for everyone. Their importance continues to grow, powering the digital age and making everyday activities smoother and faster.
Industry Overview
The Electronic Manufacturing Services(EMS) industry is experiencing significant growth. In 2021, the market was valued at $500 billion. It’s projected to reach $790 billion by 2030. This represents a compound annual growth rate of 6% from 2022 to 2030. Europe is expected to be the fastest-growing region during this period. The market’s expansion is evident in the forecast for 2024, which predicts a value of $595.50 billion. This shows steady progress towards the 2030 target.
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The EMS sector plays a crucial role in global electronics production. It supports various industries by providing manufacturing and assembly services. The growth reflects increasing demand for electronic devices worldwide. As technology advances, EMS providers are likely to face both challenges and opportunities. They must adapt to new manufacturing techniques and changing consumer preferences. The industry’s future seems promising, with continued expansion on the horizon.
Going forward India being a country with a population of close to 140 crore and rising disposable income will lead to a rise in demand for electrical devices, electricity as well as electrical components. This would result in a boom for the electronic manufacturing companies that are already established in the market.
List Of Best EMS stocks in India
Amber Enterprises India
Amber Enterprises India, founded in 1990, leads the Indian Room Air Conditioner (RAC) industry. The company excels in backward integration, offering both components and finished goods in the HVAC sector. Their product range includes Room ACs, Critical Components, and Mobility Applications for various transport modes.
Amber operates 27 state-of-the-art facilities across India, ensuring quick delivery to customers. This strategic placement allows for the efficient production of high-quality products. The company’s strong R&D capabilities further enhance its position in the ODM (Orginal Design Manufacturer) Amber Enterprises has six subsidiaries these are Sidwal Refrigeration Industries Private Limited, PICL (India) Private Limited, IL JIN Electronics (India) Private Limited, EVER Electronics Private Limited, AmberPR Technoplast India Private Limited, Pravartaka Tooling Services Private Limited.
Amber’s revenue decreased from ₹6,927 crore in FY23 to ₹6,729 crore in FY24. EBITDA improved significantly, rising from ₹471 crore to ₹547 crore year-over-year. This suggests better operational efficiency and cost management. Despite higher EBITDA, PAT declined from ₹164 crore to ₹139 crore.
The company attributes this to increased finance costs and higher depreciation due to recent capital expenditures. Despite recent challenges, Amber Enterprises shows promising signs for future growth. The company faced revenue setbacks due to project delays and shifting railway priorities. However, they’re actively expanding their product range and market reach.
The new SIDWAL facility, set to open in Q1FY26, will boost production capacity. Additionally, Amber is increasing its component offerings to existing customers. They’re also venturing into new markets, with product trials for train components starting soon.
Furthermore, the company has secured orders from international rolling stock companies. With a robust order book and growing momentum in defense applications, Amber seems well-positioned for future success. Their diversification strategy may help offset short-term setbacks in specific sectors.
Key Metrics
Kaynes Technology India
Kaynes Technology stands as a leading integrated electronics manufacturer in India. With over three decades of experience, they provide end-to-end IoT solutions and ESDM services. The company serves diverse sectors, including the automotive, aerospace, and medical industries.
Kaynes boasts impressive statistics: 34 years in manufacturing, over 1500 permanent employees, and 10 global certifications. They operate 8 manufacturing plants and 2 service centers across India. Their infrastructure spans 250,000 sq. ft. in 7 Indian cities. Remarkably, Kaynes has satisfied over 250 clients across three continents.
This extensive reach and experience position them as a major player in the electronics manufacturing sector. Kaynes offers a comprehensive range of services. These include embedded design, firmware development, and mechanical engineering. They also provide prototyping and regulatory certification assistance.
The company specializes in design for manufacturability, serviceability, and testing. Kaynes has evolved into a design-led manufacturer, offering ODM solutions in various fields. They excel in IoT solutions, developing in-house IoT IPs and tools. This approach helps accelerate product development for their clients. Additionally, Kaynes designs custom testing hardware and software, enhancing productivity and reducing development time for their customers.
Kaynes Technology’s revenue for FY24 rose to ₹1804.6 crore, a 60% increase from FY23’s ₹1126.1 crore. EBITDA also improved, reaching ₹2,54.2 crore in FY24, up 51% from ₹168.3 crore in FY23. Net profit after tax (PAT) nearly doubled, growing 93% to ₹183.3 crore from ₹95.2 crore. These strong results reflect the company’s solid growth trajectory. Their order book too showed significant growth jumping from 4,115 crore in FY24 to 5,039 crore in FY25.
Key Metrics
Dixon Technologies(India)
Dixon Technologies(India), founded in 1993, the company boasts of 21 state-of-the-art manufacturing facilities with 3 R&D centers in India and China, with a headcount of 22000+ employees. has emerged as the leading player in India’s electronic manufacturing services (EMS) industry.
Starting with color television manufacturing in 1994, Dixon has expanded its operations to diverse electronics sub-segments. As the largest homegrown design-focused solutions company, Dixon manufactures a wide range of products, including consumer electronics, home appliances, lighting, mobile phones, CCTV & DVRs, wearables, and refrigerators.
Additionally, Dixon provides reverse logistics services for LED TV panel repair and refurbishment. With state-of-the-art manufacturing facilities across India and an R&D center in India and China, Dixon has established itself as a trusted manufacturing partner for leading global and domestic brands.
Dixon’s revenue for FY24 rose to ₹17,713 crore, a 45% increase from FY23’s ₹12,198 crore. EBITDA also improved, reaching ₹720 crore in FY24, up 39% from ₹518 crore in FY23. Net profit after tax (PAT) shot by close to 47%, to ₹375 crore from ₹255 crore. These strong results reflect the company’s solid growth trajectory.
The majority of the revenue is derived from the Mobile & EMS division the contribution of which has gone up from 43% in FY23 to 62% in FY24. So with the rise in the usage of mobiles, the company is well positioned to expand its business, thus placing it at a sweet spot to enhance its growth.
Key Metrics
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Cyient DLM
Cyient DLM has over 30 years of experience in manufacturing, providing cutting-edge solutions to multiple industries. With three state-of-the-art manufacturing facilities across Hyderabad, Bengaluru, and Mysuru, the company occupies 350,000 square feet of production space. They deliver high-quality, reliable systems with an expert team of 900+ associates and 7,000+ design associates from Cyient Services.
Cyient DLM achieved remarkable financial growth in FY24 compared to FY23. Revenue increased by 43.2%, reaching ₹1192 crore. EBITDA grew by 26.5%, totaling ₹111 crore. Despite a 124 bps drop in EBITDA margin to 9.3%, the company maintained strong performance. Additionally, PAT saw an impressive 92.9% rise, climbing to ₹61.2 crore. These figures highlight Cyient DLM’s ability to deliver higher profitability while continuing to expand its operations and generate value for stakeholders.
In FY24, Cyient DLM’s revenue mix shifted, with defense rising to 49% (from 37%) and aerospace to 24% (from 20%). Industrial revenue dropped to 16% (from 27%), and Med Tech declined to 8% (from 13%). Rail remained steady at 2%. These changes highlight a growing focus on defense and aerospace over industrial and Med Tech sectors.
The company aims to drive growth through three strategies: strengthening its core business by securing strategic deals and enhancing B2S offerings, pursuing inorganic expansion via acquisitions in North America and EMEA regions, and entering new industries and geographies, such as electric vehicles and 5G. By focusing on client proximity and tapping into emerging EMS markets, the firm plans to expand capabilities and market presence across disruptive sectors, achieving significant growth.
Key Metrics
Syrma SGS Technology
Syrma SGS, a leading electronics manufacturer, began in 1976 as part of the Tandon Group, establishing South Asia’s first HDD manufacturing unit. After over four decades of growth, it now operates in 25+ countries. Formed by the merger of Syrma and SGS Tekniks, the company serves global and Indian clients with products like PCBs, magnetic disc drives, coils, and RFID tags.
Syrma pioneered electronics manufacturing in India since the late 1970s, while SGS Tekniks initially focused on the automotive sector in North India. Together, they have 18 advanced manufacturing facilities and 3 R&D centers.
Syrma SGS showed strong financial performance in FY24. Their total revenue grew by 54% year-over-year, reaching ₹3,212.4 crores from ₹2,092 crores. The company’s EBITDA also increased by 11%, totaling ₹257 crores. Profit After Tax saw a modest 1% growth, amounting to ₹124.3 crores. These figures demonstrate the company’s ability to boost revenue and maintain profitability in a challenging market.
The revenue mix for FY24 reveals diverse industry contributions. Consumer electronics led with ₹1,260.8 crores, showing a remarkable 91% growth. The auto sector followed at ₹649.5 crores, up by 61%. Industrials contributed ₹833.3 crores, increasing by 30%. Healthcare saw ₹252.8 crores, growing 55%. However, IT and Railways declined by 13% to ₹157.4 crores. Overall, the total revenue reached ₹3,153.8 crores, marking a 54% year-on-year growth across segments.
Syrma SGS aims to strengthen its market position by focusing on technology innovation, strategic acquisitions, expanding into new industries, partnering with marquee clients for high-value contracts, and driving operational efficiencies to enhance performance and maintain competitiveness in the electronics manufacturing sector.
Key Metrics
Conclusion
The electronic manufacturing services(EMS) sector is vital for technological advancement and economic growth. Companies like Amber Enterprises, Kaynes Technology, Dixon Technologies, Cyient DLM, and Syrma SGS demonstrate robust performance and innovation.
Their ability to adapt to market demands positions them for future success. As the industry evolves, these firms face challenges but also significant opportunities. They are expanding product lines and entering new markets, ensuring continued relevance.
Questions for the readers: How will these companies navigate emerging technologies? What role will consumer demand play in shaping their strategies? The future of EMS in India looks promising, driven by innovation and market expansion. Comment below.
Written By Dipangshu Kundu
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