Effective management guidance is crucial for electronics manufacturers to thrive in the rapidly changing industry. It helps companies adjust to market shifts, seize new opportunities, and streamline operations, boosting their competitiveness and providing more value to customers.
Here are a few Electronics Manufacturing Stocks (EMS) with robust Management Guidance for FY25 and further:
1. PG Electroplast Limited
PG Electroplast Limited (PGEL) is a prominent Indian EMS provider, specializing in OEM and ODM for consumer electronics and appliances. The company delivers comprehensive solutions, including plastic injection molding and PCB assemblies, to top global brands in industries such as automotive and consumer durables.
For FY25, PG Electroplast has revised its operating revenue guidance to at least Rs.4,250 crore, with an additional Rs.600 crore expected from its joint venture, Goodworth Electronics, totaling Rs.4,850 crore in operating revenue. This represents a 77 percent growth compared to FY24.
The company has also updated its net profit guidance to at least Rs.250 crore, marking an 83 percent increase from FY24’s Rs.137 crore. The product businesses, including washing machines, room air conditioners, and air coolers, are anticipated to grow by 78 percent, reaching Rs.2,975 crore from Rs.1,668 crore.
Capital expenditure guidance is set between Rs.370 to Rs.380 crore, with progress on infrastructure and capacity expansion proceeding as planned. The company is on track to meet its expansion targets for the year.
With a market capitalization of Rs.17,650 crore, the share price of PG Electroplast Limited closed at Rs.725.70 per share on Friday, 3.6 percent higher from its previous close.
In its recent financial updates, the company reported a 46 percent increase in revenue to Rs.671 crore compared to the same quarter last year, while net profits surged 58 percent to Rs.19 crore.
2. Amber Enterprises India Ltd
Amber Enterprises India Ltd is a leading manufacturer in the Room Air Conditioner (RAC) market, established in 1990 and publicly listed since 2017. The company specializes in OEM and ODM services, producing complete RAC units and components across 27 manufacturing facilities in India.
Amber Enterprises India Ltd has reiterated its previous guidance of doubling its division’s revenue over the next three years, supported by a strong order book of over Rs.2000 crores and the expansion of its product portfolio.
The company expects its annual capital expenditure (capex) to remain between Rs.350 crores and Rs.375 crores, excluding the Korea Circuit capex and the Ascent expansion, for which details will be provided in due course. The revenue growth guidance stands at approximately 25 percent.
With a market capitalization of Rs.22,174 crore, the share price of Amber Enterprises India Ltd closed at Rs.6,075.00 per share on Friday, 1.4 percent up from its previous close.
In its recent financial updates, the company reported an 81 percent increase in revenue to Rs.1,685 crore in Q2 FY25 compared to the same quarter last year, while net profits surged to Rs.21 crore from a net loss of Rs.6 crore in Q2 FY24.
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3. Kaynes Technology India Ltd
Kaynes Technology India Limited, headquartered in Mysore, Karnataka, India, is a leading provider of integrated electronics manufacturing services (EMS). The company provides its products and services to key players across various sectors, including automotive, industrial, nuclear, medical, railway, aerospace and defense, space, IoT, information technology, and other industries.
Jairam Sampath of Kaynes Technology India, in an interview with ETNOW, stated that the company is on track to achieve its revenue target of Rs.3000 crore with an EBITDA margin exceeding 15 percent.
Over the next 5-10 years, he anticipates feasible growth of 40-60 percent. For its EMS segment, the company plans a capital expenditure of Rs.200-250 crore by year-end, with capex expected to grow by 50 percent annually starting next year.
Additionally, Sampath projects that the company’s semiconductor business will generate Rs.4000 crore in revenue by FY30.
With a market capitalization of Rs.38,586 crore, the share price of Kaynes Technology India Ltd closed at Rs.5,966.65 per share on Friday, 2.2 percent up from its previous close.
In its recent financial updates, the company reported a 48 percent increase in revenue to Rs.433 crore in Q2 FY25 compared to the same quarter last year, while net profits surged 152 percent to Rs.63 crore from Q2 FY24.
Written by – Siddesh S Raskar
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