Strong management guidance is essential for electronics manufacturers to navigate the fast-evolving industry landscape. It enables companies to adapt to changes, capitalize on emerging opportunities, and optimize operations, enhancing their competitiveness and delivering greater value to customers.
Here are a few Electronics Manufacturing Stocks (EMS) with robust Management Guidance for FY25 and further:
Kaynes Technology India Limited
Kaynes Technology is an integrated electronics manufacturing company based in India, offering comprehensive solutions across sectors such as automotive, aerospace, and medical electronics.
Kaynes Technology’s management guidance for FY25 focuses on achieving and surpassing its revenue estimate of Rs.30,000 million while targeting an EBITDA margin of 15 percent.
The company plans to expand into key verticals to enhance both top-line and bottom-line performance and is committed to becoming a fully integrated electronics company by incorporating PCB and OSAT businesses.
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The company aims to reach $1 billion in consolidated revenue by FY28, with the EMS business projected to contribute 70 to 75 percent of this total. Exports are expected to grow to 20 to 25 percent by FY 2025-26.
Additionally, Kaynes Technology is investing approximately Rs.40 crores in R&D for the Kavach system, an anti-collision device for railways, with expectations for its market debut in the first quarter of FY 2025-26.
With a market capitalization of Rs.33,985 crore, the share price of Kaynes Technology opened at Rs.5,310.00 per share on Tuesday, 0.11 percent higher than its previous close.
In its recent financial updates, the company’s revenue grew 70 percent to Rs.504 crore compared to the same quarter a year ago and net profits grew 104 percent to Rs.51 crore.
Dixon Technologies Limited
Dixon Technologies is a leading EMS company in India, offering design-focused solutions across diverse product categories, including consumer electronics, home appliances, lighting, mobile phones, IT hardware, and security devices.
The company aims to achieve revenue of Rs.3,500 crore for FY25 and plans to reach Rs.48,000 crore in the IT hardware segment over the next six years. It is currently negotiating server contracts with two major global OEMs.
Dixon Technologies’ mobile segment is emerging as a key growth driver, positioning the company advantageously in the market, according to company Vice Chairman and Managing Director Atul Lall in a conversation with CNBC TV-18. This segment is anticipated to contribute 70 percent of the company’s revenue for FY24-25.
Lall noted that the margin for laptops and notebooks is similar to that of mobile devices, between 3.5 and 4 percent, emphasizing the mobile segment’s importance to Dixon Technologies’ financial performance.
With a market capitalization of Rs.83,713 crore, Dixon Technologies’ share price opened at Rs.13,999 on Tuesday, reflecting a 0.12 percent increase from the previous close.
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In its recent financial updates, the company reported a 101.1 percent rise in revenue to Rs.6,580 crore compared to the same quarter last year, while net profits surged 109 percent to Rs.140 crore.
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’s operating revenue guidance is set at a minimum of Rs.3,400 crores for PGEA and Rs.1,600 crores for Goodworth Electronics, totaling Rs.4,000 crores in group operating revenue, a 46 percent increase from FY24.
The company also forecasts a consolidated net profit of at least Rs.200 crores, reflecting a 46 percent growth from the FY24 net profit of Rs.137 crores.
The product business, including washing machines, room air conditioners, and air coolers, is expected to grow 44 percent from Rs.1,668 crores in FY24 to Rs.2,400 crores in FY25. Capex for FY25 is guided between Rs.370 to Rs.380 crores.
The company plans to expand the AC capacity of rooms with a new unit in Rajasthan and increase washing machine production to 2 million units with a new facility in Greater Noida.
With a market capitalization of Rs.16,083 crore, the share price of PG Electroplast Limited opened at Rs.616.75 per share on Tuesday, 0.42 percent higher than its previous close.
In its recent financial updates, the company reported a 95 percent increase in revenue to Rs.1,321 crore compared to the same quarter last year, while net profits surged 147 percent to Rs.84 crore.
Written by – Siddesh S Raskar
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