- Electronics stocks rallied after Cabinet approved Mobile Phone Manufacturing Scheme 2.0
- Dixon Technologies rose over 7% intraday, Kaynes Technology gained around 3.5%
- Scheme budget is Rs 62,500 crore for FY27 to FY31, succeeding the earlier PLI program
Electronics manufacturing stocks rallied on Wednesday after the Union Cabinet approved the revamped Mobile Phone Manufacturing Scheme (MPMS), or Mobile PLI 2.0, with Dixon Technologies leading the gains and Kaynes Technology also trading higher as investors cheered the government's latest push to deepen domestic electronics manufacturing.
Dixon Technologies surged as much as 7.18% intraday to Rs 14,675 and was last trading at Rs 14,631, while Kaynes Technology climbed 3.47% intraday to Rs 3,452.90 before paring some gains to trade around Rs 3,426.50.
Harshal Dasani, Business Head at INVAsset PMS, said the latest rally in Dixon is being driven more by company-specific catalysts than a broader sector re-rating. "The most immediate trigger is the government approval for the Dixon-Vivo joint venture, which crystallises the smartphone EMS opportunity that has been the central bull thesis for the company over the past two years," he said.
The new scheme, with a Rs 62,500 crore budgetary outlay and a five-year tenure from FY27 to FY31, succeeds the original Mobile PLI programme that ended in March 2026.
Unlike its predecessor, Mobile PLI 2.0 expands incentives beyond handset assembly by rewarding domestic component sourcing, product design and research & development, aimed at deepening India's electronics manufacturing ecosystem.
Brokerages also believe Dixon is best positioned to capitalise on the revamped framework.
Jefferies, meanwhile, highlighted that under the government's Electronics Components Manufacturing Scheme (ECMS), Kaynes Technology is among the companies that have already secured approval for camera module manufacturing, alongside Syrma SGS, Uno Minda, ASUS and Dixon.
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