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This Article is From Jun 07, 2024

EMS Industry - A Mixed Bag Q4; Management Guidance Remains Robust: Systematix

EMS Industry - A Mixed Bag Q4; Management Guidance Remains Robust: Systematix
Close view of a circuit board. (Source: pxhere.com)
STOCKS IN THIS STORY
Dixon Technologies (India) Ltd.
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Elin Electronics Ltd
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PG Electroplast Ltd.
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Kaynes Technology India Ltd
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Syrma SGS Technology Ltd.
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Avalon Technologies Ltd
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

The seven EMS companies under our coverage reported 27%/20%/17% YoY rise in revenue/Ebitda/profit after tax and were broadly inline with our estimates. Kaynes and PG Electroplast results beat our estimates (also gave strong guidance); Avalon and Dixon Technologies missed estimates by a wide margin.

Elin continued to report weak results while Amber Enterprises' healthy margins made up for its weak revenue. Syrma's profit after tax declined 17% YoY despite a 67% YoY surge in revenue.

Despite a mixed bag Q4, companies remained bullish on their growth outlook (refer company section). Government of India's vision of Make in India, Make for world, backed by various schemes and incentives have aided to India's growing acceptance as an alternate manufacturer to China.

Import substitution and India's rising penetration in the domestic market provide a large opportunity for the Indian EMS industry. We thus remain structurally positive on the industry.

Click on the attachment to read the full report:

Systematix EMS Industry - Sector Update.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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