There was a lot of volatility in the Indian stock markets during the last six months, from October 2024 to March 2025.
After hitting an all-time high of 84,299 points in September 2024, the BSE Sensex saw a dramatic correction, falling more than 13% to 73,198 points by February 2025.
This correction was due to increasing global economic uncertainty and domestic growth challenges.
However, by March 2025, there were signs of recovery, with the index starting to stabilize and potentially rebounding slightly.
The electronics manufacturing industry has shown promise during this recovery. Businesses in this industry reported strong financial performance; in Q3FY25, Syrma SGS Technology, for example, saw a more than 100% growth in net earnings year over year.
The rising technological proficiency of Indian firms and the growing desire for electronics manufacturing to be outsourced from other nations rather than only China are the main drivers of this expansion.
The industry is expected to reach around US$ 927 billion (bn) by 2032, according to a report by Mordor Intelligence. This makes it a desirable location for investors looking for growth, even in a market that is erratic.
With this in mind, let’s look at the 5 fastest growing electronics manufacturing stocks.
#1 Syrma SGS Tech
First on the list is Syrma SGS Tech, which manufactures items such as disk drives, memory modules, power supplies/adapters, fiber optic assemblies, magnetic induction coils, and RFID products in addition to a variety of electronic sub-assemblies, assemblies, and box builds.
Additionally, the business offers engineering, assembly, and manufacturing services for electrical products, including Original Design and Manufacturing (ODM) items with larger profit margins.
It is also present in the healthcare and Internet of Things (IoT) industries.Customers of Syrma SGS come from a wide range of industries, including consumer, healthcare, IT, railroads, automotive and electric vehicles, and industrials (power and capital goods).
Regarding its financial performance, over a three-year period, the company has produced a strong top-line growth of 53% compound annual growth rate (CAGR) and a net profit CAGR of 20%.
The last 3-year return on equity (ROE) has been 9%.
The stock has been experiencing consolidation for the last 1 year, possibly due to initial overvaluation in the stock.
Here’s how the stock price has performed in the past 1 year.
Looking ahead, the company has set a revenue target of Rs 45 bn for FY25 and expects a growth of about 30-35% for FY26. Management is confident in achieving a growth higher than the industry average.
It aspires to become a US$ 1 bn organization in the next few years.
The company anticipates significant business from onboarded automotive and industrial clients in FY27.
The company estimates a revenue potential of Rs 60 bn, depending on the product mix.
The company has guided for earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 7% for FY25, translating to Rs 30 bn.
It aims for a sustainable EBITDA margin of 7% plus annually, without other income.
With a target of roughly 14.5–15% for the current year, Syrma SGS aims to achieve a return on capital employed (ROCE) of 20% over the following two years.
The estimated capital expenditure for FY26 is between Rs 10 and Rs 15 billion.
The company still has about Rs 13 billion in unused IPO revenues, which will be used to expand the Hosur facility and upgrade the Pune site over the course of the next one to one and a half years.
As of December 2024, it had a strong open order book of approximately Rs 53 bn. This order book is expected to be executed over a period of 9 to 15 months.
#2 Kaynes Technology India
Kanyes Technology India, a well-known manufacturer of integrated electronics with more than thirty years of expertise, comes in second on the list. The business is a provider of Electronics System Design and Manufacturing (ESDM).
Regarding its financial performance, the company has produced a net profit CAGR of 165% and a strong top-line growth of 62% CAGR over a three-year period.
The last 3-year ROE has been 13%.
This impressive profit CAGR has been well rewarded by the markets. The stock has more than doubled and has now stabilized at the 5,000 level.
Here’s how the stock price has performed in the past 1 year.
With a solid order book and ambitions for substantial revenue and profit development, Kaynes Technology is looking to the future.
By FY28, it wants to generate billions of dollars in income.
The company anticipates increasing its operating EBITDA margin by more than 1% in FY25.
Within three to five years, Kaynes anticipates that its semiconductor ventures (OSAT) will make a substantial contribution to its income.
For FY26, it has provided revenue guidance of Rs 45 billion. This estimate excludes possible future acquisitions and is based on the current ESDM, PCB, and semiconductor businesses.
The company’s management believes the business can triple from the FY25 revenue base within the FY29 timeframe.
As of December 2024, the order book stood at Rs 60,471 m.
The company has secured a large order in the aerospace, outer space, and strategic electronics verticals and has also secured a large order with potential for significant volumes in the coming years.
Its acquisition of Iskraemeco has opened up a potential revenue opportunity of almost close to about Rs 65 bn over the next several years in the smart meter segment.
It expects to do almost Rs 10 bn kind of number in smart meters alone in the next running 12-month period.
Kaynes is undertaking capacity expansions at its existing facilities in Manesar, Mysuru, Bengaluru, Pune, and Chennai.
It has taken possession of land and started construction activities for the OSAT factory at Sanand in Gujarat and the HDI PCB factory in Oragadam in Tamil Nadu. These projects are expected to start yielding significant revenues from the fourth quarter of FY26.
The total capex for the semiconductor facility is approximately Rs 33 bn, out of which 70-75% is expected to be covered by central and state government subsidies.
#3 PG Electroplast
PG Electroplast comes in at number three.In the consumer durables sector, it functions as both a contract manufacturer (CM) and an original design manufacturer (ODM).
The company offers end-to-end solutions for the whole value chain of the items it distributes, making it a one-stop shop for major Indian and international companies.
In terms of financial performance, the company has produced a remarkable net profit CAGR of 125% and a top-line growth of 57% CAGR over a three-year period.
The last 3-year ROE has been 19%.
The market seems to be not getting enough of this growth. The stock has been on a tear.
Here’s how the stock price has performed in the past 1 year.
Looking ahead, the order book for the product business remains robust, and the company hopes to scale the product business significantly in FY25.
The company continues to see increased interest in the business from new and existing clients and remains confident about future growth prospects.
Its FY25 net profit forecast is at least Rs 2.8 billion, a significant rise of over 105% over FY24’s net profit of Rs 1.4 billion.
The second AC plant owned by the firm is nearing completion of commissioning at Bhiwadi.
An equity fund offering of Rs 15 billion was completed by PG Electroplast (QIP). The Rs 5 billion in net proceeds from the preceding QIP were used to finance working capital, capital projects, and other business needs.
With an emphasis on the Middle Eastern and African markets for ACs, it is aggressively preparing for exports.
#4 Dixon Technologies
Dixon Technologies, a top supplier of Electronic Manufacturing Services (EMS) in India, comes in at number four on the list. Consumer durables, home appliances, lighting items, mobile phones, telecom equipment, and security gadgets are among the many electronic goods that the company principally manufactures.
Regarding its financial performance, the company has produced a net profit CAGR of 32% and a growth rate of 40% CAGR during the last three years.
The last 3-year ROE has been 23%.
Just like the company’s profit trajectory, stock is also on a continuous uptrend
Here’s how the stock price has performed in the past 1 year.
Dixon is constantly expressing optimism about robust revenue growth in the future, which will be fueled by rising demand, gaining new clients, and expanding into untapped product categories.
The primary area of growth is the mobile phone sector, especially with the Production Linked Incentive (PLI) program serving as a stimulant.
Dixon expects relationships with both domestic and international players to result in considerable revenue increases in this sector. Its goal is to grow its market share in India’s outsourced mobile smartphone market.
Dixon expects operating leverage to kick in across all verticals as volumes increase, leading to margin expansion. This has already been observed in the TV vertical.
Increasing backward integration, such as manufacturing display modules, chargers, adapters, and other components in-house, seems to be the key strategy to improve margins and enhance customer stickiness.
It has undertaken significant capex in recent years to expand capacities across various verticals and enter new product categories.
#5 Amber Enterprises India
Fifth on the list is Amber Enterprises, which focuses on producing and selling consumer durable goods and has positioned itself as a top supplier of B2B solutions that are fully backward integrated and diverse.
Originally focused on Room Air Conditioner (RAC) components, the company’s primary business now includes both RAC and non-RAC components.
In addition to their component manufacturing and electronics businesses, Amber has pursued a significant diversification strategy over the past five years, expanding its solutions to a number of industries, including home appliances, consumer electronics, wearables and hearables, telecom, automobile segments, smart energy meters, railway subsystems, and defense.
Coming to its financial performance, the company has delivered a solid top-line growth of 30% CAGR over a 3-year period and a net profit CAGR of 16%.
The last 3-year ROE has been 7%.
Despite a mediocre performance of the company in comparison to its peers, the stock has performed well in the last year.
Here’s how the stock price has performed in the past 1 year.
Looking ahead, Amber anticipates significant revenue growth across its various divisions. The Electronics (EMS) division is expected to be a major growth driver, with the revenue growth guidance for FY25 revised upwards to more than 55%.
This growth is due to both the PCBA and bare board verticals, including contributions from Ascent Circuits and new customers in sectors like renewable energy.
The railway sub-systems and defence division is also poised for substantial expansion, with a goal to double its revenue in the next 3 years.
This will be fuelled by the modernisation of mobility infrastructure, new product additions like doors and gangways, and a growing defence order book with export opportunities.
Amber has a strong and growing order book, particularly in the railway sub-systems and defence division, with a current visibility of over Rs 20 bn.
This includes orders for HVAC systems for metro projects and a strengthening defence order book with export potential. The company anticipates further strengthening of this order book.
Amber has outlined significant capital expenditure plans to support its growth. The total capex for FY25 is expected to be in the range of Rs 3.5 to 3.8 bn, excluding the capex for the Korea Circuit JV and further expansion of Ascent Circuits.
For Ascent Circuits, an investment of Rs 6.50 bn for a new PCB manufacturing facility in Hosur is slated, expected to more than double the current capacity.
Commercial production is slated to begin by Q4 FY26. The net capex outflow for this project over two financial years will be around Rs 3 bn after accounting for subsidies.
For the Korea Circuit JV, while the exact capex is yet to be finalised pending government incentive scheme announcements, the potential investment could be in the range of Rs 10 bn plus. Major capex for this JV is expected in FY27.
The company anticipates a slight increase in its net debt level by the end of the current financial year, expecting it to be in the range of Rs 7-8 bn due to these investments and capex activities.
If you want to dig deeper into such high growth stocks, use Equitymaster’s stock screener to check fastest growing electronics manufacturing stocks.
Conclusion
In a world increasingly driven by technology, betting on the builders behind the gadgets might just be the smartest choice.
While the sector’s tailwinds—outsourcing shifts, government incentives like the PLI scheme, and rising domestic expertise—paint a promising picture, investors should remain vigilant.
The path to growth is rarely linear; execution risks and global economic headwinds always remain.
Therefore, investors must evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
