According to reports from The Financial Express, Motilal Oswal has identified Dixon Technologies, Cyient DLM and Syrma SGS Technology as its preferred listed companies in the Electronics Manufacturing Services sector. The brokerage believes these companies are well-positioned to benefit from India's renewed push to build a domestic semiconductor ecosystem. Motilal Oswal expects Dixon Technologies and Amber Enterprises India Ltd. to participate in the Mobile Phone Manufacturing Scheme, which is aimed at expanding domestic production and exports while increasing local value addition.
As reported by The Financial Express, following an expert interaction on recent policy initiatives, Motilal Oswal expects incentives proposed under Semicon 2.0 and the Mobile Phone Manufacturing Scheme to strengthen the domestic supply chain over the next five years. The brokerage believes these initiatives will encourage investments across semiconductor materials, specialty gases, module manufacturing, printed circuit boards, and other upstream components, strengthening domestic value addition over the coming years.
According to the report, the Mobile Phone Manufacturing Scheme has a budgetary outlay of ₹62,500 crore and will run from Financial Year 2027 to Financial Year 2031. The scheme offers incentive support ranging from 2.25% to 5%, an additional domestic sourcing incentive of up to 1.5%, and an extra 3% incentive on eligible sales for Indian brands investing in product design and research and development. The government expects the programme to help achieve production of ₹39,00,000 crore, expand exports and generate 60,000 direct jobs during the scheme period.
As reported by The Financial Express, Motilal Oswal has also included Avalon Technologies, Kaynes Technology and Data Patterns in its Electronics Manufacturing Services coverage universe alongside Amber Enterprises, Dixon Technologies, Cyient DLM and Syrma SGS Technology. The report presents their relative valuation metrics, including earnings estimates, price-to-earnings multiples, return on equity and expected growth projections, though it did not provide separate investment notes for these businesses.
According to the brokerage's assessment reported by The Financial Express, India's semiconductor ecosystem must develop simultaneously across the entire value chain, as no segment can scale up independently. Motilal Oswal believes the latest policy measures could strengthen India's electronics manufacturing ecosystem by encouraging investments across multiple segments of the semiconductor value chain instead of focusing only on fabrication. The brokerage expects the incentives under Semicon 2.0 and the Mobile Phone Manufacturing Scheme to support domestic value addition, strengthen supply chains and encourage fresh investments over the next five years.
