Jefferies has flagged the electronics manufacturing services (EMS) sector as a key beneficiary of the ECMS scheme, particularly for printed circuit board (PCB) manufacturing.
With India importing 80–85% of PCB demand, and 30% anti-dumping duty (ADD) imposed in 2024, Jefferies sees strong tailwinds for domestic players. Companies like Amber and Kaynes have forayed into PCB manufacturing, leveraging their existing infrastructure, while Dixon is expanding into display modules.
Jefferies estimates that its EMS coverage universe will see a capex of ₹7,500 crore between FY26–28, up sharply from ₹4,200 crore over FY22–24.
However, the brokerage cautioned that returns on capital employed (RoCE) are likely to remain range-bound in the near term, with FY26 RoCE for Amber, Kaynes, and Syrma estimated at 15–18%, up from 12–15% in FY25.
Disclaimer: The views and target prices mentioned are as stated by Jefferies and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
Ahmedabad Plane Crash