Rs 40,000 cr boost! Dixon Tech, Kaynes, Syrma SGS, Amber shares jump up to 7%; here's why
Rs 40,000 cr boost! Dixon Tech, Kaynes, Syrma SGS, Amber shares jump up to 7%; here's why
Syrma SGS Technology Ltd soared 6.7 per cent to Rs 812.10. Dixon Technologies (India) Ltd climbed 5.4 per cent to hit a high of Rs 11,008.85. Kaynes Technology India shares were trading 3.6 per cent higher at Rs 3,601.40.
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Amber Enterprises India Ltd gained 4.55 per cent to Rs 5,978. PG Electroplast Ltd was up 2.59 per cent at Rs 561.75. Avalon Technologies Ltd added 3.6 per cent to Rs 888.30. Cyient DLM Ltd rose 1.04 per cent to Rs 379.70.
Union Budget 2026: Shares of Syrma SGS Technology Ltd, Dixon Technologies (India) Ltd, Kaynes Technology India Ltd, Amber Enterprises India Ltd, PG Electroplast Ltd (PGEL), Avalon Technologies and Cyient DLM soared up to 7 per cent in Sunday's trade, as the Finance Minister Nirmala Sitharaman announced Rs 40,000 crore outlay for electronics component manufacturing. This met market expectations. The Street was hoping for increased budgetary allocation for Electronic Component Manufacturing Scheme (ECMS), which was seen strengthening local component production.
Besides, the FM said the government will launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains.
Among EMS stocks, Syrma SGS Technology Ltd soared 6.7 per cent to Rs 812.10. Dixon Technologies (India) Ltd climbed 5.4 per cent to hit a high of Rs 11,008.85. Kaynes Technology India shares were trading 3.6 per cent higher at Rs 3,601.40. Amber Enterprises India Ltd gained 4.55 per cent to Rs 5,978. PG Electroplast Ltd was up 2.59 per cent at Rs 561.75. Avalon Technologies Ltd added 3.6 per cent to Rs 888.30. Cyient DLM Ltd rose 1.04 per cent to Rs 379.70.
"The increased Rs 40,000 crore outlay for the semiconductor mission, coupled with industry-led research and training centres, significantly strengthens India’s ambition to build a self-reliant chip ecosystem while reducing structural dependence on China for critical semiconductor supplies. The enhanced fiscal support improves project viability, lowers entry costs, and boosts global competitiveness for domestic manufacturers, while accelerating innovation in chip design and advanced manufacturing. This creates a favourable environment for companies such as Kaynes Technology India Limited, CG Power and Industrial Solutions Limited, and Tata Electronics Private Limited, as they scale fabrication and advanced electronics capabilities," said Divyam Mour, Research Analyst, SAMCO Securities.
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EMS players looking to backward integrate into semiconductors stand to benefit through higher value capture and long-term earnings visibility, he noted.
In her Budget speech, Sitharaman said her government was increasing the outlay for electronics component manufacturing to Rs 40,000 crore to strengthen domestic production and innovation. In the case of ISM 2.0,Sitharaman noted that the country's Semiconductor Mission 1.0 had expanded the country’s semiconductor capabilities. Investors were, meanwhile, eyeing further announcements, regarding extension on PLI scheme. The probability for such an announcement was deemed high.
Over the past three months, Kaynes Technology shares have slumped 48.87 per cent, while Dixon Technologies has declined 33.26 per cent over the same period. Amber Enterprises has fallen 29.29 per cent, while Syrma SGS Technology Ltd is down 7.53 per cent.
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Ahead of the Budget, Ambit Capital said it preferred Amber Enterprises within the EMS segment, followed by PG Electroplast Ltd, which it described as a diversified consumer EMS and rated Buy. The brokerage maintained a Sell rating on Dixon Technologies.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Union Budget 2026: Shares of Syrma SGS Technology Ltd, Dixon Technologies (India) Ltd, Kaynes Technology India Ltd, Amber Enterprises India Ltd, PG Electroplast Ltd (PGEL), Avalon Technologies and Cyient DLM soared up to 7 per cent in Sunday's trade, as the Finance Minister Nirmala Sitharaman announced Rs 40,000 crore outlay for electronics component manufacturing. This met market expectations. The Street was hoping for increased budgetary allocation for Electronic Component Manufacturing Scheme (ECMS), which was seen strengthening local component production.
Besides, the FM said the government will launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains.
Among EMS stocks, Syrma SGS Technology Ltd soared 6.7 per cent to Rs 812.10. Dixon Technologies (India) Ltd climbed 5.4 per cent to hit a high of Rs 11,008.85. Kaynes Technology India shares were trading 3.6 per cent higher at Rs 3,601.40. Amber Enterprises India Ltd gained 4.55 per cent to Rs 5,978. PG Electroplast Ltd was up 2.59 per cent at Rs 561.75. Avalon Technologies Ltd added 3.6 per cent to Rs 888.30. Cyient DLM Ltd rose 1.04 per cent to Rs 379.70.
"The increased Rs 40,000 crore outlay for the semiconductor mission, coupled with industry-led research and training centres, significantly strengthens India’s ambition to build a self-reliant chip ecosystem while reducing structural dependence on China for critical semiconductor supplies. The enhanced fiscal support improves project viability, lowers entry costs, and boosts global competitiveness for domestic manufacturers, while accelerating innovation in chip design and advanced manufacturing. This creates a favourable environment for companies such as Kaynes Technology India Limited, CG Power and Industrial Solutions Limited, and Tata Electronics Private Limited, as they scale fabrication and advanced electronics capabilities," said Divyam Mour, Research Analyst, SAMCO Securities.
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EMS players looking to backward integrate into semiconductors stand to benefit through higher value capture and long-term earnings visibility, he noted.
In her Budget speech, Sitharaman said her government was increasing the outlay for electronics component manufacturing to Rs 40,000 crore to strengthen domestic production and innovation. In the case of ISM 2.0,Sitharaman noted that the country's Semiconductor Mission 1.0 had expanded the country’s semiconductor capabilities. Investors were, meanwhile, eyeing further announcements, regarding extension on PLI scheme. The probability for such an announcement was deemed high.
Over the past three months, Kaynes Technology shares have slumped 48.87 per cent, while Dixon Technologies has declined 33.26 per cent over the same period. Amber Enterprises has fallen 29.29 per cent, while Syrma SGS Technology Ltd is down 7.53 per cent.
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Ahead of the Budget, Ambit Capital said it preferred Amber Enterprises within the EMS segment, followed by PG Electroplast Ltd, which it described as a diversified consumer EMS and rated Buy. The brokerage maintained a Sell rating on Dixon Technologies.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
