The shares of several EMS stocks jumped in trade on October 28 after Indian government announced the first set of approvals under the Electronics Component Manufacturing Scheme (ECMS).
The government on October 27 announced that it has cleared seven projects worth Rs 5,532 crore in investment and Rs 44,406 crore in projected output.
Which companies received approvals?
The approved companies include Kaynes Circuits India, which is a subsidiary of Kaynes Technology, SRF, Syrma Strategic Electronics, which is a subsidiary of Syrma SGS, and Ascent Circuits — with Tamil Nadu accounting for five of the seven projects. Together, they are expected to create over 5,000 jobs in the first phase.
Electronics Component Manufacturing Scheme (ECMS):
This comes after what officials described as an "unprecedented" industry response to ECMS. The Ministry of Electronics and IT (MeitY) received 249 applications with a total investment commitment of Rs 1.15 lakh crore, which is nearly double the scheme’s original target of Rs 59,350 crore. The proposals represent a projected production value of Rs 10.34 lakh crore and employment potential of 1.41 lakh, compared to initial estimates of Rs 4.57 lakh crore and 91,600 jobs.
"The components being approved today—multi-layer PCBs, copper laminates, camera modules, and polypropylene film—are the foundation of every electronic device," said Union Minister for Electronics and IT Ashwini Vaishnaw. "With these plants, India will meet 20 percent of its domestic demand for high-density PCBs, 15 percent for camera modules, and 100 percent for copper laminates," he added.
Among the approved firms, Kaynes Circuits leads with four projects spanning across PCBs, HDI boards, camera modules, and laminates, while SRF will produce polypropylene film, a key material used in capacitors. Syrma Strategic Electronics and Ascent Circuits will both manufacture multi-layer PCBs, critical for sectors ranging from consumer electronics to aerospace and defence.
EMS stocks jump:
Syrma SGS Technology shares gained more than 6 percent to hit an intraday high of Rs 800.85 apiece so far during the day, before paring some gains and trading over 4 percent higher at Rs 786.05 apiece, as seen at 10.55 am.
Kaynes Technology shares meanwhile rose over 2 percent to trade at Rs 6,886.50 apiece. SRF shares gained nearly 1 percent earlier during the day, before erasing all gains to trade in the red. SRF reported a net profit of Rs 388 crore for Q2 FY26 on October 27, marking a 93 percent YoY rise from the Rs 201 crore net profit reported in Q2 FY25. The firm’s revenue from operations meanwhile rose 6 percent YoY to Rs 3,640 crore during the quarter under review.
Morgan Stanley remained 'underweight' on the stock, with a target price of Rs 2,175 per share. This implies a downside potential of nearly 28 percent from the stock’s previous closing price. The international brokerage said that the company’s core PAT missed estimate by 10 percent.
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