Kaynes Tech, Dixon fall up to 5.5% even as Jefferies expects strong growth from EMS firms through FY28

Kaynes Tech, Dixon shares rise in trade. 

Shares of electronics manufacturing services (EMS) companies Kaynes Technology India and Dixon Technologies (India) fell by up to 5.5 percent on Tuesday amid profit booking, even as brokerage firm Jefferies maintained a positive outlook on the sector through FY28.

Shares of Kaynes Technology declined 5.37 percent to close at Rs 3,783 apiece on the National Stock Exchange (NSE), while Dixon Technologies settled 3.11 percent lower at Rs 11,676.

Amber Enterprises India ended flat at Rs 6,710 pershare, while Syrma SGS Technology closed marginally higher at Rs 752.10, up 0.25 percent.

The decline in select stocks came despite Jefferies projecting strong growth for Indian EMS companies over the medium term.

In a note, Jefferies said Indian electronics manufacturers are expected to deliver a compound annual growth rate (CAGR) of 44 percent in earnings per share between FY25 and FY28, driven by execution.

The brokerage said the government's production-linked incentive (PLI) scheme for components has supported growth in the segment and added that it prefers Indian component manufacturers over original equipment manufacturers in 2026.

Jefferies estimates total capital expenditure of Amber Enterprises, Syrma SGS Technology, Kaynes Technology India and Dixon Technologies at around Rs 100 billion between FY26 and FY28, with return on capital employed (RoCE) seen in the range of 15–17 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.