5 electronics manufacturing stocks outpacing the market with strong growth

Over the past six months, from October 2024 to March 2025, the Indian stock markets faced a lot of turbulence. 

BSE Sensex, after reaching an all-time high of 84,299 points in September 2024, saw a sharp correction, dropping to 73,198 points by February 2025, a decline of over 13%.

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.

During this rebound, the electronics manufacturing sector has emerged as a bright spot. Companies in this sector reported impressive financial results, with some, like Syrma SGS Technology, seeing more than 100% year-over-year increase in net profits in Q3FY25. 

This growth is fuelled by the increasing technological expertise of Indian players and increasing demand for outsourced electronics manufacturing from other countries instead of just China.

According to a report by Mordor Intelligence, the sector is projected to reach nearly US$ 927 billion (bn) by 2032, making it an attractive area for investors seeking growth even in a volatile market.

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, engaged in the business of manufacturing various electronic sub-assemblies, assemblies, and box builds, along with products like disk drives, memory modules, power supplies/adapters, fiber optic assemblies, magnetic induction coils, and RFID products. 

The company also provides engineering, assembling, and manufacturing services for electronic products, including higher-margin Original Design and Manufacturing (ODM) products. 

Its presence extends to the Internet of Things (IoT) and healthcare sectors as well. Syrma SGS serves a diverse customer base across various industries, including automotive and EV, consumer, healthcare, railways, IT, and industrials (power and capital goods).

Coming to its financial performance, the company has delivered a solid top-line growth of 53% compounded annual growth rate (CAGR) over a 3-year period 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.

Syrma SGS is targeting a return on capital employed (ROCE) of 20% over the next two years, with a target of around 14.5-15% for the current year.

For FY26, the capex is expected to be around Rs 10 to 15 bn.

The company still has approximately Rs 13 bn of unutilized IPO proceeds, which are planned to be spent over the next 1 to 1.5 years on further upgrading the Pune facility and developing the facility in Hosur.

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

Coming second on the list is Kaynes Technology India, a prominent player in integrated electronics manufacturing, with over three decades of experience in the industry. The company operates as an Electronics System Design and Manufacturing (ESDM) provider.

Coming to its financial performance, the company has delivered a solid top-line growth of 62% CAGR over a 3-year period and a net profit CAGR of 165%.

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.

Looking ahead, Kaynes Technology has ambitious growth plans focusing on significant revenue and profit growth with a strong order book.

It aims to become a billion-dollar revenue company by FY28.

In FY25, the company expects to achieve an improvement in operational EBITDA margin of more than 1%.

Kaynes expects its semiconductor ventures (OSAT) to significantly contribute to revenues within 3-5 years.

It has given a revenue guidance of Rs 45 bn for FY26. This projection is based on the existing ESDM business, PCB business, and semiconductor business, and does not include potential future acquisitions.

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

On number three comes PG Electroplast. It operates as both an Original Design Manufacturer (ODM) and a contract manufacturer (CM) in the consumer durables industry. 

The company serves as a one-stop destination for leading Indian and global brands by providing end-to-end solutions across the entire value chain of the products it supplies. 

Coming to its financial performance, the company has delivered an impressive top-line growth of 57% CAGR over a 3-year period and an even more impressive net profit CAGR of 125%.

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 net profit guidance for FY25 is at least Rs 2.8 bn, which is a substantial increase of around 105% over FY24 net profit of Rs 1.4 bn.

The company’s 2^nd plant at Bhiwadi for ACs is in the final stages of commissioning.

PG Electroplast concluded a Rs 15 bn equity fund raise (QIP). The net proceeds from the previous QIP of Rs 5 bn have been utilized for funding working capital, capital expenditure, and general corporate purposes.

It is actively planning for exports, with a focus on the Middle East and African markets for ACs.

#4 Dixon Technologies

Fourth on the list is Dixon Technologies, a leading Electronic Manufacturing Services (EMS) provider in India. The company is primarily involved in the manufacturing of a diverse range of electronic goods, including consumer durables, home appliances, lighting products, mobile phones, telecom products, and security devices. 

Coming to its financial performance, the company has delivered a growth of 40% CAGR over 3 years and a net profit CAGR of 32%.

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.

Looking ahead, Dixon is consistently expressing confidence in strong revenue growth moving forward, driven by increased demand, new customer acquisitions, and entry into new product domains.

The mobile phone segment is the major growth area, particularly with the Production Linked Incentive (PLI) scheme acting as a catalyst. 

Dixon anticipates significant revenue increases in this sector through partnerships with both domestic and global players. It is targeting to increase its share of the outsourced mobile smartphone market in India. 

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, primarily involved in the manufacturing and trading of consumer durable products, strategically positioning itself as a leading, fully backward integrated and diversified B2B solution provider. 

The company’s core business, which initially centered on Room Air Conditioner (RAC) components, has evolved to encompass both RAC and non-RAC components.

Over the past five years, Amber has pursued a significant diversification strategy, extending its solutions to various sectors, including home appliances, consumer electronics, hearables & wearables, telecom, automobile segments, smart energy meters, railway subsystems, and defence, alongside their component manufacturing and electronics businesses.

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.

Happy investing.

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