In the past six months, from October 2024 to March 2025, the Indian stock market has experienced notable fluctuations. The BSE Sensex peaked at a record 84,299 points in September 2024 but encountered a steep decline, plummeting to 73,198 points by February 2025, marking a significant drop of over 13%. This downturn can be attributed to escalating global economic uncertainties and challenges in domestic growth.

However, by March 2025, indications of recovery began to surface, with the index showing signs of stabilization and a possible slight rebound. Notably, the electronics manufacturing sector has emerged as a beacon of hope during this challenging period, with companies like Syrma SGS Technology reporting remarkable financial results, including a staggering 100% year-over-year increase in net profits for Q3FY25. This growth is largely driven by India’s advancing technological capabilities and a rising demand for electronics manufacturing from global markets, moving beyond traditional reliance on China.

According to a report from Mordor Intelligence, the electronics manufacturing sector is projected to reach nearly USD 927 billion by 2032, making it a promising area for investors looking for growth opportunities in an unpredictable market.

Top 5 Rapidly Growing Electronics Manufacturing Stocks

1. Syrma SGS Technology

Leading the pack is Syrma SGS Technology, a company specializing in the production of various electronic sub-assemblies, assemblies, and box builds. Their product range includes disk drives, memory modules, power supplies, fiber optic assemblies, and RFID products. Syrma SGS also provides engineering and manufacturing services for higher-margin Original Design and Manufacturing (ODM) products.

• Financial Highlights:
  • Top-line growth: 53% CAGR over three years
  • Net profit growth: 20% CAGR
  • Return on Equity (ROE): 9% over the last three years

Looking ahead, Syrma SGS aims for a revenue target of INR 45 billion for FY25, expecting a growth rate of 30-35% for FY26. The management is optimistic about surpassing industry growth averages and aspires to achieve USD 1 billion in revenue in the coming years.

2. Kaynes Technology India

Next is Kaynes Technology India, a key player in integrated electronics manufacturing with over 30 years of experience. As an Electronics System Design and Manufacturing (ESDM) provider, Kaynes has delivered impressive financial performance.

• Financial Highlights:
  • Top-line growth: 62% CAGR over three years
  • Net profit growth: 165% CAGR
  • ROE: 13% over the last three years

Kaynes is on track to become a billion-dollar company by FY28 and expects significant contributions from its semiconductor ventures in the next few years. The current order book stands at over INR 60 billion, bolstered by recent large contracts in aerospace and strategic electronics.

3. PG Electroplast

PG Electroplast ranks third, functioning as both an Original Design Manufacturer (ODM) and a contract manufacturer in the consumer durables sector. This company offers comprehensive solutions for leading brands globally.

• Financial Highlights:
  • Top-line growth: 57% CAGR over three years
  • Net profit growth: 125% CAGR
  • ROE: 19% over the last three years

PG Electroplast is optimistic about its future, projecting a net profit of at least INR 2.8 billion for FY25, a substantial increase from the previous year. The firm is also focusing on expanding its export operations to markets in the Middle East and Africa.

4. Dixon Technologies

Dixon Technologies is a prominent Electronic Manufacturing Services (EMS) provider in India, producing a wide range of electronic products, from consumer durables to mobile phones.

• Financial Highlights:
  • Top-line growth: 40% CAGR over three years
  • Net profit growth: 32% CAGR
  • ROE: 23% over the last three years

Dixon is optimistic about leveraging the Production Linked Incentive (PLI) scheme to boost its mobile phone segment, aiming for significant revenue growth through new partnerships and expanded market share.

5. Amber Enterprises India

Finally, Amber Enterprises specializes in manufacturing consumer durable products, notably Room Air Conditioner (RAC) components, while diversifying into various sectors including telecom, automobile, and defense.

• Financial Highlights:
  • Top-line growth: 30% CAGR over three years
  • Net profit growth: 16% CAGR
  • ROE: 7% over the last three years

Amber anticipates substantial growth in its Electronics Manufacturing Services (EMS) division, projecting revenue growth of over 55% for FY25. The company is also focusing on expanding its order book, which currently exceeds INR 20 billion.

Conclusion

In a technology-driven world, investing in the companies behind the gadgets may offer lucrative opportunities. While factors like outsourcing trends, government incentives, and domestic expertise present a bright outlook, investors should remain alert to the inherent risks associated with market fluctuations. Evaluating a company’s fundamentals, governance, and stock valuations is crucial for making informed investment choices.

For a deeper dive into promising growth stocks, consider utilizing stock screening tools like Equitymaster to identify the fastest-growing companies in the electronics manufacturing sector.

Happy investing!