Syrma Leads HDFC Securities' Picks in India's Growing EMS Sector

Q: What is the projected growth rate for India's EMS sector?

The EMS sector is expected to grow at a CAGR of **27%** from FY24 to FY29.

Original: EMS Stocks: Syrma Tops HDFC Securities' Picks; Dixon, Kaynes, Amber In Focus; Q4 Preview

Ndtv•Apr 7, 20262 min

In a Nutshell

HDFC Securities highlights the promising growth of India's Electronics Manufacturing Services (EMS) sector, projecting a revenue CAGR of 27% from FY24 to FY29. Syrma SGS is identified as a top pick, benefiting from government initiatives and increasing demand for domestic electronics manufacturing.

Key Points

01India's EMS sector is at an early stage with only 4-5% global market share.
02Projected revenue CAGR of 27% from FY24 to FY29.
03Key growth drivers include PLI incentives and supply-chain diversification.
04Government initiatives aim to enhance domestic manufacturing capabilities.
05Syrma SGS is the top pick by HDFC Securities in this sector.

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Full Summary

According to a report by HDFC Securities, India's Electronics Manufacturing Services (EMS) industry is poised for significant growth, currently holding a mere 4-5% share of the global market. The sector has demonstrated a robust revenue growth rate of 24% CAGR from FY19 to FY24, with expectations to accelerate to 27% CAGR from FY24 to FY29. This growth is driven by several factors, including Production-Linked Incentive (PLI) schemes, the need for supply-chain diversification due to geopolitical tensions, and rising domestic demand for electronics. Despite these advancements, the sector faces challenges, particularly its reliance on imported components. To mitigate this, the Indian government has launched initiatives like the Electronics Component Manufacturing Scheme and the Semiconductor Mission, aimed at boosting local manufacturing and competitiveness. As the industry continues to evolve, Syrma SGS has been identified as a leading stock pick in the EMS sector by HDFC Securities.

Key Figures