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Jefferies Backs Kaynes Tech Over Dixon, Syrma as India Pushes Component Manufacturing

Jefferies has issued a 'Buy' rating on Kaynes Technology with a target of Rs 4,480, while maintaining 'Hold' on Dixon Technologies and Syrma SGS Technology. The brokerage sees India's electronics component push, including the ECMS scheme, as a potential boon for component makers over assembly-focused firms.

By Tertius News AI Desk 2 distinct · 2 mastheads · 2 articles Version 1 Coverage Aug 31, 2026 Published 1h ago

International brokerage Jefferies has reaffirmed its preference for electronics component maker Kaynes Technology over mobile assembly giant Dixon Technologies, as India accelerates efforts to deepen domestic manufacturing of electronics components. The firm also advised caution on Syrma SGS Technology, which has seen a sharp rally this year.

Jefferies has a 'Buy' rating on Kaynes Technology with a target price of Rs 4,480, while maintaining 'Hold' ratings on Dixon Technologies (target: Rs 12,730) and Syrma SGS Technology (target: Rs 1,430).

India's Electronics Production Growth

According to Jefferies, India's electronics production has more than doubled over five years, rising from around Rs 5 lakh crore in FY21 to Rs 1 lakh crore in FY26. Mobile phones account for nearly half of this production, but domestic value addition remains below 15%.

The brokerage noted that the government is now focusing on deepening the component ecosystem. The Mobile Production-Linked Incentive (PLI) scheme, covering FY21-FY26, helped India assemble almost 99% of mobile phones domestically. The next phase, Jefferies said, will focus more on components.

ECMS: Building the Missing Supply Chain

The Electronics Components Manufacturing Scheme (ECMS) aims to create a robust local supply chain. So far, 106 projects have been approved under the scheme, against 249 initial applications. Around 38 plants have already started production, while 16 more are at advanced stages of construction or machinery installation. The approved investment is about Rs 69,500 crore across 14 states.

Jefferies expects ECMS to address around 50% of the mobile bill of materials by the end of its six-year tenure. Printed circuit boards (PCBs) could be one of the biggest opportunities, with the market estimated at around $7 billion. Currently, 85-90% of PCB requirements are met through imports, and imports of PCBs with up to six layers attract a 30% additional duty.

The brokerage believes foreign partnerships could help Indian manufacturers bridge technology gaps, citing examples such as Dixon-HKC, QTech, and Syrma-Shinhyup.

Stock Preferences and Valuation

Jefferies prefers component plays over assembly-focused companies like Dixon. The brokerage's 'Buy' on Kaynes Technology reflects this view, as the company is more focused on components.

Dixon Technologies trades at around 67 times one-year forward earnings, while Syrma SGS has gained around 105% year-to-date and trades at about 57 times one-year forward earnings.

Under the new Mobile Production-Linked Incentive scheme (MPMS), Jefferies expects mobile production to rise to around Rs 39 lakh crore, compared with Rs 25 lakh crore earlier. The brokerage also estimates that EMS companies could deliver an average 27% compound annual growth rate in earnings per share between FY26 and FY29.

How each outlet told it

A framing line is our reading of that outlet's own text — an interpretation, not a quotation and not a fact we assert. Check it against what the outlet published.

The Economic Times

Framing: Highlights Jefferies' preference for Kaynes Tech over Dixon Tech and its caution on Syrma SGS — analytical and factual

as of Aug 31, 2026, 10:17 AM UTC

Facts Included:

Jefferies has a Buy call on Kaynes Tech with a target price of Rs 4,480
Jefferies has a Hold rating on Dixon Tech with a target of Rs 12,730
Jefferies has a Hold rating on Syrma SGS with a target of Rs 1,430
India's electronics production rose to Rs 1 trillion in FY26 from FY21
Mobile production accounted for around 50% of FY26 electronics production
Domestic value addition in mobile production is less than 15%
The government is seeking to address the gap via the Electronics Component Manufacturing Scheme (ECMS) and the Mobile Production Linked Incentive scheme (MPMS)
ECMS is expected to cover around 50% of the mobile bill of materials
PCB market total addressable market is around $7 billion, with 85-90% of requirements met through imports
Imports of PCBs of up to six layers attract around 30% additional duty
Foreign partnerships cited as examples: Dixon-HKC, QTech, Syrma-Shinhyup
ECMS has approved 106 projects out of 249 initial applications
On August 17, the government approved the fifth tranche of ECMS covering 31 projects
38 plants have already started production under ECMS
Approved projects represent total investments of Rs 695 billion across 14 states
MPMS targets mobile production of Rs 25 trillion by FY26
MPMS has an outlay of Rs 625 billion over five years
MPMS provides an additional 5% incentive for domestic sourcing of key components
Dixon was a key beneficiary of the first LSEM scheme, but Jefferies expects higher competition under MPMS
Kaynes Technology is preferred over assembly OEMs due to its focus on components

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The Financial Express

Framing: Compares three EMS stocks and highlights Jefferies' Buy rating on Kaynes amid a $7 billion PCB opportunity — Analytical and neutral

as of Aug 31, 2026, 8:18 AM UTC

Facts Included:

India's electronics production rose from around Rs 5 lakh crore in FY21 to Rs 1 lakh crore in FY26.
Mobile phones account for nearly half of this production.
Domestic value addition remains below 15%.
Jefferies has a ‘Buy’ rating on Kaynes Technology, while Dixon Technologies and Syrma SGS Technology carry ‘Hold’ ratings.
The Mobile Production-Linked Incentive (PLI) scheme (FY21-FY26) helped India assemble almost 99% of mobile phones domestically.
The Electronics Components Manufacturing Scheme (ECMS) has approved 106 projects, with 38 plants already in production and 16 at advanced stages.
Approved investment under ECMS is around Rs 69,500 crore across 14 states.
Jefferies estimates the PCB market at around $7 billion, with 85-90% dependent on imports.
Jefferies expects ECMS to address around 50% of the mobile bill of materials by end of its tenure.
Dixon-HKC and Syrma-Shinhyup are cited as foreign technology partnership examples.
Dixon has a Hold rating; stock trading at around 67 times one-year forward earnings.
Syrma SGS has gained around 105% year-to-date and trades at about 57 times one-year forward earnings.
Jefferies expects mobile production to rise to around Rs 39 lakh crore under MPMS, compared with Rs 25 lakh crore earlier.
Jefferies estimates EMS companies could deliver an average 27% CAGR in EPS between FY26-29.

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What was claimed, and who backed it

AI-extracted; can misattribute a claim — see Methodology.

Each row is one claim, attributed to the outlet whose wording states it most clearly. Confidence rates how directly the source text states the claim — explicit and unhedged rates high; hedged, pieced-together, or internally inconsistent statements rate lower. It does not measure whether the claim is true. Status is Contested when two claims on this page negate each other; otherwise it counts the distinct outlets we found asserting it — so a single-source claim can still show high confidence, and a multi-source claim can show medium. Every one of those outlets is named beside the status, so you can check the count against the list. For claims extracted before we began storing that list, the row says so: it names the outlet the claim is quoted from and states that we have not recorded which outlets backed it. Outlets wrote at different times, so a figure that evolves — a casualty count, for example — can legitimately differ between rows; check the "as of" time next to each claim's source.

Claim	Confidence	Status
ClaimIndia's electronics production has more than doubled in five years, rising from around Rs 5.5 lakh crore in FY21 to 12.1 lakh crore in FY26.	ConfidenceHigh	StatusSingle-source via The Economic Times as of Aug 31, 2026, 10:17 AM UTC
ClaimMobile phones account for nearly half of this production.	ConfidenceHigh	StatusSingle-source via The Economic Times as of Aug 31, 2026, 10:17 AM UTC
ClaimDomestic value addition remains below 15%.	ConfidenceMedium	StatusSingle-source via The Economic Times as of Aug 31, 2026, 10:17 AM UTC

Transparency & Audit Trail

2 distinct · 2 mastheads · 2 articles consulted: The Economic Times, The Financial Express 3 claims extracted Version 1 Written 2026-08-31