EMS Sector Check - Building Foundation For Sustainable Growth: Motilal Oswal

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..Motilal Oswal Report.India's electronics manufacturing services industry is booming thanks to the addition of new segments, increasing domestic manufacturing, import substitution, and global partnerships. In this report, we discuss about the changing dynamics of the EMS industry in FY24, the strategies adopted by the companies and evolving opportunities for them. Our coverage companies in the EMS industry are Kaynes Technology Ltd., Avalon Technologies Ltd., Syrma SGS Technology Ltd., Cyient DLM Ltd., and Data Patterns India Ltd.The industry is undergoing a transformation with changing dynamics. Although there is short-term margin pressure due to strategic investments, the long-term outlook looks positive. The strategies implemented by EMS companies are expected to drive strong revenue growth and boost margins in the future.EMS companies are doing technological tie-ups to quickly scale up as they need advanced tech to sustain growth. Building tech in-house is a time-consuming process, so partnering with global OEMs is a win-win deal for both, as global OEMs gain access to India's growth market and EMS companies get a tech boost.We believe the growth momentum for the EMS industry will remain intact in the medium term, led by strong execution of the growing order book from the existing and new end-user industries. We expect our EMS coverage companies to report a CAGR of 39%/48%/54% in revenue/Ebitda/adjusted profit after tax over FY24-26..Click on the attachment to read the full report:.EMS Industry - A Mixed Bag Q4; Management Guidance Remains Robust: Systematix.DISCLAIMERThis 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.

EMS Sector Check - Building Foundation For Sustainable Growth: Motilal Oswal

EMS industry in an evolution phase

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