Synopsis

Electronic manufacturing services players' shares rose Thursday after duty concessions were extended. This relief covers machinery for lithium-ion battery and display component manufacturing. The government's move reinforces its commitment to the domestic electronics ecosystem. Shares of Syrma SGS Technology and Dixon Technologies are strong performers. This import duty concession should act as a tailwind for the sector.

Mumbai: Shares of electronic manufacturing services (EMS) players rose on Thursday after the Centre extended customs duty concessions on a range of machinery and components used by these players until March 2029. Shares of Dixon Technologies(India), Amber Enterprises India, Syrma SGS Technology, PG Electroplast and Kaynes Technology India rose between 2% and 7% at the day's close, while the Nifty 50 and Nifty 500 indices ended 0.3% and 0.8% higher, respectively.

Manish Valecha, co-head of research, Anand Rathi Institutional Equities said the relief covers machinery for lithium-ion battery manufacturing, display assembly components for automotive and medical applications, wireless charging modules for mobile phones, and other specified electronics manufacturing inputs.

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"While the immediate financial benefit is modest - primarily through lower capex and machinery procurement costs - the move reinforces the government's long-term commitment to strengthening the domestic electronics manufacturing ecosystem under the broader PLI framework and increases the likelihood of further policy support over time," he said.

Shares of these companies have seen a mixed performance this year.

Shares of Syrma SGS have been the top performers in 2026, up 101%, Dixon and Amber Enterprises are up 11% and 18% respectively. PG Electroplast shares have remained flat while Kaynes Technology is down 12.6% so far this year. The Nifty 50 and Nifty 500 indices are down 8.4% and 3.5% respectively.

Mahesh Ojha, vice-president, research, Kantilal Chhaganlal Securities said the import duty concession should act as a tailwind for the sector. "In the EMS space, Syrma SGS and Dixon are our strongest picks, followed by PG Electroplast and Kaynes Technology," he said. "We remain particularly bullish on Syrma SGS as the stock's fundamentals are strong, there still seems to be room for upside, and any healthy correction can be seen as an opportunity to add."

Valecha said that among listed players, Dixon Technologies and Kaynes Technology are the most direct beneficiaries.

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