Dixon Technologies & Kaynes Technology: What Gaurav Sharma of Globe Capital says on these 2 EMS stocks

Gaurav Sharma of Globe Capital sees Dixon Technologies (India) Ltd and Kaynes Technology India Ltd as better plays from the Indian EMS (Electronics Manufacturing Services) industry currently.

"Dixon is trading at a high valuation, but it is also performing consistently. The company's sales figures are high and the quarterly numbers are good. I see this particular dip as a fresh buying opportunity. A further drop close to Rs 15,000 level would be a perfect point to buy the stock," the market expert told Business Today on Wednesday.

Dixon's profit after tax (PAT) soared 322 per cent year-on-year (YoY) to Rs 401 crore in the January-March 2025 quarter (Q4 FY25), steered by a one-time exceptional gain of Rs 250.4 crore. Revenue also jumped 121 per cent YoY to Rs 10,292.5 crore, registering a significant jump from Rs 4,658 crore in the previous year.

He chose Kaynes Technology as his preferred pick from the EMS space. "My preferred stock from this sector is Kaynes Tech. It has been a consistent performer. Some profit taking could be seen in Kaynes and Rs 5,400 is the level that can be expected shortly," Sharma stated.

On the earnings front, Kaynes posted a 43 per cent YoY uptick in its PAT, which came at Rs 116.2 crore in Q4 FY25 as against Rs 81.3 crore in the corresponding period a year ago. Revenue from operations surged 54 per cent to Rs 984.5 crore in Q4 FY25 from Rs 637.3 crore in the year-ago period.

Both the EMS counters were trading lower today. Dixon shares tanked 7.81 per cent to hit a low of Rs 1,5272.75 while Kaynes shed 2.11 per cent to Rs 5,875 level.