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Motilal Oswal Report
Motilal Oswal has reiterated its positive stance on India’s Electronics Manufacturing Services sector after the Union Cabinet approved an outlay of Rs 1.27 lakh crore for Semicon 2.0 and Rs 62,500 crore for the Mobile Phone Manufacturing Scheme (MPMS).
fresh incentive schemes worth nearly Rs 1.9 lakh crore aimed at boosting semiconductor and mobile phone manufacturing in the country.
Motilal Oswal expects the schemes to accelerate capital expenditure across semiconductor and mobile manufacturing while encouraging companies to deepen backward integration and local sourcing. The brokerage believes these initiatives could enhance supply-chain resilience, improve technological capabilities and reinforce India’s position as a global electronics manufacturing hub.
Among listed companies, the brokerage expects Dixon Technologies and Amber Enterprises to be among the key beneficiaries of the MPMS, subject to approval of their applications. It noted that Dixon is particularly well placed because of its stronger backward integration and domestic sourcing capabilities, which could also support margin expansion over time.
The brokerage maintained Dixon Technologies, Cyient DLM and Syrma SGS Technology as its preferred picks in the EMS space. The brokerage has given ‘Neutral’ stance to Data Patterns.
It also believes the broader semiconductor programme could benefit companies engaged in chip design, advanced packaging, semiconductor fabrication, materials and equipment manufacturing, creating positive spillover effects across the industrial ecosystem.
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