From contract manufacturing to innovation-driven growth, Electronics Manufacturing Services (EMS) has huge potential in India. By FY27, the EMS industry in India is expected to reach around $55 billion, reflecting more than a doubling of revenue from previous years.
The Indian EMS market is projected to grow at a compound annual growth rate (CAGR) of approximately 32 percent from 2021 to 2026, aiming to capture 7 percent of the global EMS market by 2026, up from just 2.3 percent in 2021.
Following are three EMS stocks that are held by ace investors in the September 2024 quarter:
Hind Rectifiers Limited
With a market cap of Rs. 1,686.4 crores, the stock surged nearly 2 percent on BSE to Rs. 1,020.15 during the morning trading session of Thursday.
According to the September 2024 shareholding data available with the BSE, the ace investor Mukul Mahavir Agrawal holds a 1.39 percent stake in Hind Rectifiers.
The stock has delivered multibagger returns of nearly 122 percent over the past one year, and around 87.6 percent of positive returns year-to-date.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 39 percent from Rs. 97.6 crores in Q1 FY24 to Rs. 135.5 crores in Q1 FY25.
Similarly, the net profit grew by nearly 250 percent YoY from Rs. 2 crores to Rs. 7 crores, over the same period.
Hind Rectifiers Limited is principally engaged in the business of developing, designing, manufacturing and marketing Power Semiconductors, Power Electronic Equipments and Railway Transportation Equipments.
3M India Limited
With a market cap of Rs. 38,256.2 crores, the stock witnessed a nearly 0.5 percent increase on BSE to Rs. 34,035.5 during the morning trading session of Thursday.
According to the September 2024 shareholding data available with the BSE, the ace investor RK Damani via Bright Star Investments Private Limited holds a 1.48 percent stake in 3M India.
The stock has delivered positive returns of nearly 16 percent over the past one year, but around 7.3 percent of negative returns year-to-date.
The company experienced a marginal decline in its revenue from operations, showing a year-on-year decrease of around 0.3 percent from Rs. 1,050 crores in Q1 FY24 to Rs. 1,047 crores in Q1 FY25.
In contrast, the net profit grew by 21.7 percent YoY from Rs. 129 crores to Rs. 157 crores, over the same period.
3M India Limited, a subsidiary of 3M Company, USA, manages its operations in four operating segments: Safety & Industrial, Transportation & Electronics, Health Care and Consumer.
Amber Enterprises India Limited
With a market cap of Rs. 21,350.4 crores, the shares of this leading room air conditioner manufacturer witnessed a nearly 0.5 percent increase on BSE to Rs. 6,430 during the morning trading session of Thursday.
According to the September 2024 shareholding data available with the BSE, the ace investor Akash Bhanshali holds a 1.48 percent stake in Amber Enterprises.
The stock has delivered multibagger returns of nearly 112.4 percent over the past one year, as well as around 100.8 percent returns year-to-date.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 41 percent from Rs. 1,702 crores in Q1 FY24 to Rs. 2,401 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 47 crores to Rs. 75 crores, indicating a rise of nearly 60.3 percent YoY.
Incorporated in 1956, Amber Enterprises India Limited is principally engaged in the business of manufacturing and trading of consumer durables, electronics manufacturing services (EMS) and railway subsystem & mobility and its services.
Written by Shivani Singh
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