EMS Stocks Buzz: 4 ELECTRONIC Stocks From Rs 400-2500 To Buy For 17-35% Potential Upside; Who Are They?

Electronic manufacturing services (EMS) stocks are buzzing and broadly experts are bullish on the segment. Ahead of the election, leading brokerage Motilal Oswal currently has recommended buying four such EMS stocks to fetch double-digit returns. There is potential for 17% to as high as 35% upside in the four EMS shares.

They are Avalon Technologies, Cyient DLM, Kaynes Technology and Syrma SGS Technology.

Avalon Technologies: (CMP: Rs 512.25, Potential Upside: 17%)

Motilal Oswal has recommended BUY for a target price of Rs 600.

Avalon Technologies Limited is one of India's leading fully integrated Electronic Manufacturing Services (EMS) companies with end-to-end operations in delivering box-build solutions in India, with a focus on high-value precision-engineered products.

2. Cyient DLM: (CMP: Rs 684.50, Potential Upside: 18%)

Motilal here has recommended buying for a target price of Rs 810.

Cyient DLM is a leading Integrated Electronics Manufacturing Solutions provider that offers design-led manufacturing (DLM) solutions to its customers. With a global presence and a strong commitment to delivering value-driven solutions, the company has been instrumental in transforming businesses through innovation and technology.

3. Kaynes Technology India: (CMP: Rs 2463.80, Potential Upside: 34%)

In this EMS stock, the brokerage has recommended buying for a target price of Rs 3300 apiece.

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India. We have capabilities across the entire spectrum of ESDM services.

The company has over three decades of experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, Aerospace and Defence, Outer-space, Nuclear, Medical, Railways, Internet of Things ("IoT"), Information Technology ("IT") and other segments.

4. Syrma SGS Technology: (CMP: Rs 473.40, Potential Upside: 35.2%)

Motilal also likes Syrma's share price and accordingly has recommended buying for a target price of Rs 640.

Syrma SGS has been the preferred value creator for its customers over the last 40 years through innovative and efficient Electronic System Design and Manufacturing. The company provides high-mix, flexible volume, precision OEM manufacturing.

Its one-stop-solution electronics manufacturing services (EMS) include product design, quick prototyping, PCB assembly, Box build, repair & rework and automatic tester development services. Syrma SGS also offers OEM solutions for RFID tags & inlays and high-frequency magnetic components.

EMS Industry Outlook!

Earlier, Sailesh Rao - EY-Parthenon India Strategy Leader said in a December paper, India is expected to become an electronics manufacturing powerhouse over the next decade driven by increasing domestic demand and improving export competitiveness. Domestic production has nearly doubled between FY17 and FY22 and is expected to further increase at a CAGR of 24% between FY22 and FY27.

He pointed out that in recognition of the industry's potential and to support it further, over recent years, the Indian government has introduced many schemes, incentivizing electronics manufacturing. The Production Linked Incentive (PLI) Scheme addresses challenges associated with the high cost of capital in India. It provides a 4% to 6% incentive on incremental sales of goods manufactured in India and targets specific sectors within India's electronics industry.

Growth in domestic electronics production will be majorly driven by technology adoption, increasing affordability and sustainability, he added.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.