Latest news with #ElectronicComponentManufacturingScheme
Time of India
2 days ago
- Business
- Time of India
Kaynes & Avalon Poised for Strong CAGR Through FY27 on Scale; Motilal Oswal sees over 20% upside each
India's Electronics Manufacturing Services (EMS) sector is witnessing rapid growth, supported by a strong order pipeline, ongoing capacity additions, and improving global relevance. The industry is expanding across segments, backed by rising work content, better execution visibility, and a gradual shift towards higher-margin categories like aerospace, industrial, automotive, and critical infrastructure. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kampong Krabei: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Order inflows remain firm, aided by new client additions, margin-accretive contracts, and prototype-to-production conversions. The cumulative order book for the EMS space (excluding Amber and Dixon) rose 23% YoY to INR 163 billion in FY25, highlighting the sector's robust growth momentum. Several macro drivers are fuelling domestic electronics demand, including higher investments in surveillance, the evolution of electric vehicles and AI applications, and ongoing infrastructure upgrades. Low penetration of consumer electronics and rising income levels also support long-term growth. Additionally, the increasing involvement of both global and Indian players is strengthening the local value chain. Government-led initiatives such as the Production-Linked Incentive (PLI) and Electronic Component Manufacturing Scheme (ECMS) are further accelerating investments across segments like semiconductors and display modules. Live Events EMS companies are scaling up operations to match growing demand. New plant setups, export-oriented units, and investments in areas like OSAT and HDI PCB manufacturing are progressing well. These initiatives cater to rising needs from regions such as Europe, GCC, and North America, while also enabling broader product offerings. Most players saw margin improvements in FY25, a trend likely to continue, boosting earnings predictability. In summary, the EMS industry is on a strong growth trajectory, supported by favorable demand dynamics, increasing exports, and deepening domestic integration. With a supportive policy environment, expanding capacities, and growing importance in global supply chains, the sector is well placed to maintain its growth momentum in the foreseeable future. Kaynes Technologies: Buy| Target Rs 7300| LTP Rs 5770| Upside 26% It is poised for strong FY26 growth with a revenue target of INR45b, driven by higher-margin new orders, operating leverage, and expansion across key verticals such as automotive, aerospace, industrial, and medical. Recent acquisitions have enhanced its global presence & opened new growth opportunities, with future focus on high-margin ODMs & expansion in South Asia & Europe. HDI PCB and OSAT units are expected to commercialize by 4QFY26, targeting INR25b revenue in FY27 and INR50b by FY28, with robust margins (~30%/20%). We estimate revenue/EBITDA/PAT CAGR of 57%/61%/70% over FY25–27, driven by scale and margin gains. Avalon Technologies: Buy| Target Rs 1030| LTP Rs 828| Upside 24% Company's long-term revenue trajectory is anticipated to be strong, backed by: 1) the addition of new customers in the US and Indian markets, 2) order inflows from the high-growth/high-margin industries, such as clean energy, mobility, and industrials, 3) strategic collaborations and 4) venturing into advanced technology segments. Management guided for 18-20% revenue growth in FY26, with gross margins of 33-35%. Strategic collaborations (e.g., with Zepco) and capex plans to expand capacity will support future growth. We expect a CAGR of 28%/40%/58% in revenue/EBITDA/adj. PAT over FY25-FY27. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd ) ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
09-05-2025
- Business
- Time of India
States chase chip billions; Porter's unicorn round
States chase chip billions; Porter's unicorn round Also in the letter: UP, Gujarat rush to take part(s) in electronics race Current situation: Tamil Nadu was among the first movers, announcing a programme to match incentives under the Centre's new Electronic Component Manufacturing Scheme (ECMS) after the government rolled out a Rs 23,000 crore package to boost the electronics ecosystem. Gujarat is fast becoming a hub for electronics and semiconductors, with projects from Micron, CG Power, and Tata Electronics in Dholera and Sanand. Uttar Pradesh is positioning itself as a key player, leveraging Noida's growing status as an electronics manufacturing hub. Karnataka already has a competitive Electronics System Design and Manufacturing (ESDM) policy. 'We might make some tweaks and additions, but it remains competitive,' said Gunjan Krishna, Karnataka's commissioner for industrial development. Also Read: Tell me more: Future outlook: Porter joins unicorn club with $200 million funding round; valuation hits $1.2 billion Deal details: The round, comprising both primary and secondary transactions, has propelled Porter into the unicorn club with a $1.1–$1.2 billion valuation, according to people familiar with the matter. Early investor Peak XV Partners has fully exited as part of the deal. Kae Capital and Lightrock have partially sold their stakes. Vitruvian Partners, an existing backer, also participated. Approximately $140–150 million of the total came from secondary sales, with shares acquired from early-stage investors. Valuation jump: Porter's latest valuation is more than double of $500 million at which it was valued in a 2021 round led by Tiger Global. The valuation surge follows significant business growth for the Bengaluru-based company. Operating revenue for FY25 exceeded Rs 4,000 crore, up from Rs 2,766 crore in FY24, per sources. Ex-Flipkart CTO Peeyush Ranjan joins Mukesh Bansal's Meraki Labs as partner Driving the news: Background: Prior to joining Meraki Labs, Ranjan was general manager and VP of engineering at Google, where he led teams behind AI products such as Google Assistant and parts of the Gemini app. Bansal, cofounder of fashion portal Myntra, has also backed Groww, Skyroot Aerospace, and Lyskraft – a fashion startup by former Zomato executive Mohit Gupta – through Meraki Labs. Other Top Stories By Our Reporters Prosus has invested $8.6 billion in India, remains a key market: CEO Fabricio Bloisi: Why Megabucks AI pilots may not guarantee scalable businesses for technology companies: As Google layoffs continue, a look at Big Tech job cuts in 2025: Global Picks We Are Reading Happy Friday! Uttar Pradesh and Gujarat are moving swiftly to attract major electronic component manufacturers with new incentive schemes. This and more in today's ETtech Morning Dispatch.■ Peeyush Ranjan joins Meraki■ Prosus's $8.6 billion India bet■ AI pilots' scalability concernsUttar Pradesh and Gujarat are drafting new incentive schemes to attract large-scale electronic component manufacturers to establish factories in their respective has already embedded electronic component manufacturing into its Electronics System Design and Manufacturing (ESDM) policy.'We might make some tweaks and additions to the policy in light of the latest developments but it is a competitive policy as it stands,' said Gunjan Krishna, Karnataka commissioner for industrial Centre aims to draw Rs 30,000 crore in investments and create over 60,000 jobs over six years, building on the smartphone PLI scheme's success. The goal is to double India's 20% value addition in electronics within five years.(L-R) Pranav Goel and Uttam Digga, cofounders, PorterOn-demand logistics platform Porter has raised $200 million in a funding round led by private equity firms Kedaara Capital and Wellington Ranjan, former CTO, FlipkartPeeyush Ranjan, former Flipkart CTO and long-time Google executive, has joined Mukesh Bansal's startup incubator , Meraki Labs, as a in San Francisco, Ranjan will help expand Meraki's footprint in Silicon Valley as the firm intensifies its focus on artificial intelligence (AI). He will work closely with entrepreneurs at the incubator to shape their technology and product strategies, he told us.'A big part of my role will be to guide Meraki's AI vision… What kind of companies we should start, what are the problems that we will be great at solving?... Not just applying AI for the sake of it,' he Bloisi, CEO, ProsusDutch tech investor Prosus has invested $8.6 billion in India and continues to view the country as a key growth market, CEO Fabricio Bloisi said in a letter to shareholders on firms are investing heavily into AI pilots to build competitive moats and futureproof revenues. However, these outlays may not always translate into scalable businesses, industry experts and founders told major Google laid off hundreds from its global business unit earlier this week, extending the wave of tech job cuts that began in 2023. Big Tech firms, including Meta, Microsoft, and Apple have also trimmed headcount as accelerate investments in artificial intelligence (AI).■ US scraps Biden-era rule that aimed to limit exports of AI chips ( FT ■ AI's threat to Google just got real ( WSJ ■ Sequoia leads $1.5B tender offer for sales automation startup Clay ( TechCrunch
