Nomura has initiated coverage on Dixon Technologies and Kaynes Technology, two key players in India’s electronics manufacturing services (EMS) sector. The brokerage firm has set a target price of Rs 15,567 for Dixon Technologies and Rs 5,969 for Kaynes Technology, pointing to expected growth in the sector.
According to Nomura, India’s EMS industry, valued at $25 billion in FY23, could grow at a 30% compound annual growth rate (CAGR), potentially reaching $135 billion by FY30. The firm also notes that domestic value addition (DVA) in mobile manufacturing could rise from 20% to 35% by FY30.
Samvardhana Motherson is also mentioned as a company that may see benefits from its involvement in the component ecosystem, as the sector develops further.
Nomura’s report indicates that the current environment offers opportunities for EMS companies to grow with increasing demand for electronics and the potential to address both domestic and global markets.
