7 Indian EMS Stocks that Could Benefit from US-China Trade War

The US-China trade war has triggered a global realignment in manufacturing, and India is emerging as a major beneficiary. With the US imposing tariffs on Chinese goods, global companies are actively diversifying their supply chains-and India, with its growing electronics sector, is well-positioned to capitalize.

India's electronics exports have already reached US$ 20.4 billion (bn) in FY24, with global giants like Apple and Samsung making the country a key manufacturing hub, supported by the Production-Linked Incentive (PLI) scheme.

However, a key challenge remains-India imposes a 16.5% customs duty on US electronics imports, while the US levies only 0.4% on Indian exports.

To fully leverage this shift, industry experts suggest India should cut import duties to zero, making it an even more attractive hub for global players.

Lower tariffs would reduce input costs for manufacturers, boost exports, and strengthen India's position in sectors like semiconductors, PCBs, mobile devices, and automotive electronics.

With the right policies, India could become the next major electronics manufacturing powerhouse.

In this evolving landscape, several Indian companies are set to gain from the shifting supply chains and rising global demand.

Here's a look at 7 listed stocks that could emerge as big winners from the US-China trade tensions.

#1 Dixon Technologies

First on the list is Dixon Technologies.

Dixon Technologies, a leader in India's Electronics Manufacturing Services (EMS) sector since 1993, is well-positioned to benefit from the ongoing US-China trade shift.

As global brands look for cost-effective and high-quality manufacturing alternatives, Dixon emerges as a key player with its diversified portfolio spanning consumer electronics, home appliances, mobile phones, CCTVs, and LED TVs.

Being India's largest manufacturer of LED TV screens, the company collaborates with major global brands like Samsung, Xiaomi, Panasonic, OnePlus, Philips, and Havells, further solidifying its leadership in the industry.

On the financial front, Dixon Technologies delivered an impressive year-on-year (YoY) performance in Q3 FY25.

The company reported a 117% increase in revenue, reaching Rs 104.6 bn (bn) compared to Rs 48.2 bn in Q3 FY24. The surge was largely driven by robust growth in its mobile and electronics manufacturing services (EMS) division, which remained the primary contributor.

Net profit also saw a substantial rise of 124%, climbing to Rs 2.2 bn from Rs 970 million (m) in the same quarter last year.

Going forward, Dixon is making significant strides in IT hardware and telecom products. It has set up a dedicated IT hardware manufacturing unit, with mass production for brands like HP, Asus, and Lenovo scheduled to begin by FY26.

Additionally, Dixon is planning to explore opportunities in the EV sector by seeking land to establish a factory for manufacturing electronic modules for EVs.

For more details, see the Dixon Technologies company fact sheet and quarterly results.

#2 Syrma SGS Tech

Second on the list is Syrma SGS Tech.

Syrma SGS Technologies is emerging as a strong contender in India's Electronics Manufacturing Services (EMS) industry, catering to a wide array of sectors.

In 9M FY25, the company derived 41% of its revenue from consumer electronics, 21% from automotive, 25% from industrials, 7% from healthcare, and 6% from IT and railways.

A key strength lies in its leadership in RFID product manufacturing, a niche where it holds a dominant market position. While the majority of its revenue comes from domestic markets, its international business is witnessing steady expansion.

What sets Syrma SGS apart from many EMS companies is its focus beyond contract manufacturing. By venturing into product design, the company gains flexibility in idea generation, development, and raw material selection, which ultimately enhances profitability.

This strategic shift not only improves margins but also strengthens its competitive edge. With global electronics manufacturers seeking alternatives to China amid rising tariffs and geopolitical concerns, Syrma SGS is well-positioned to benefit from this shift in supply chains.

The company's financial performance reflects its growth trajectory. In Q3 FY25, revenue rose by 23% to Rs 8.7 bn, fueled by strong momentum in the automotive, industrial, and railway segments, each growing between 37% and 38% year-on-year. Net profit saw a remarkable jump to Rs 530 m from Rs 202 m in the previous year, supported by a 134% rise in other income to Rs 222 m.

Looking ahead, Syrma SGS remains optimistic about its growth potential. On 28 October 2024, Managing Director Jasbir Singh Gujral reaffirmed confidence in the company's ability to achieve its FY25 targets, projecting a 40-45% revenue increase and an EBITDA margin of 7%.

For more details, see the Syrma SGS Technology company fact sheet and quarterly results.

#3 Kaynes Tech

Third on the list is Kaynes Technology.

Kaynes Technology is rapidly emerging as a major player in India's Electronics Manufacturing Services (EMS) industry, offering end-to-end solutions across electronics system design and manufacturing (ESDM), printed circuit board assembly (PCBA), original design manufacturing (ODM), box build assembly, and IoT solutions.

As global companies seek to diversify their supply chains amid the ongoing US-China trade war, Kaynes is well-positioned to capitalize on this shift.

Its expertise in advanced packaging technologies, semiconductor packaging (OSAT), and PCB manufacturing aligns with India's vision of becoming a global electronics hub.

With increasing demand for cost-effective and high-quality alternatives outside China, Kaynes is set to be a key beneficiary of this structural transition.

The company has established a strong presence in high-growth sectors such as automotive, aerospace, defence, industrial automation, railway, and medical devices.

It is now expanding aggressively into emerging industries, including electric vehicles (EVs), space exploration, and telecom. To support its growth ambitions, Kaynes is actively scaling up its manufacturing capabilities, ensuring it can meet the rising demand for advanced electronics solutions.

Kaynes delivered robust financial performance in Q3 FY25, with revenue surging 30% YoY to Rs 6.6 bn, driven primarily by the industrials (including EV) and automotive segments, which grew by 38% and 28% YoY, respectively.

Its order book expanded by an impressive 60% YoY to Rs 60.5 bn, providing strong revenue visibility for the coming years. Net profit also increased by 47% compared to last year, aided by a rise in other income.

Looking ahead, Kaynes is aggressively expanding its production capacity while diversifying its revenue streams and strengthening its position in high-margin businesses.

The company has set a near-term revenue target of Rs 45 bn for FY26, supported by growth in EMS, semiconductor packaging (OSAT), and PCB manufacturing. With long-term ambitions of reaching US$1 bn in revenues by FY27-28.

For more details, see the Kaynes Technology company fact sheet and quarterly results.

#4 SPEL Semiconductor

Next on the list is SPEL Semiconductor.

SPEL Semiconductor specializes in semiconductor integrated circuit (IC) assembly and testing, offering comprehensive solutions, including wafer sorting, assembly, testing, and drop-shipment services.

As a trusted contract manufacturing partner for leading global semiconductor companies, SPEL plays a crucial role in the supply chain.

Its facility, Natronix, stands as India's first and only semiconductor IC assembly and testing unit, further strengthening the country's semiconductor ecosystem.

Additionally, the company is involved in semiconductor packaging, positioning itself as a potential beneficiary of the ongoing US-China trade war, which is prompting global players to diversify their supply chains.

On the financial front, SPEL reported a 17.1% decline in revenue for the December 2024 quarter, bringing it down to Rs 18.9 m. Meanwhile, its net loss widened to Rs 48.2 m, compared to Rs 42.6 m in the same period last year.

Going forward, the company is focused on expanding its capacity and driving innovation in semiconductor packaging to strengthen its market position.

For more details, see the SPEL Semiconduct company fact sheet and quarterly results.

#5 Cyient DLM

Next on the list is Cyient DLM.

Cyient DLM is a leading player in the EMS sector, focusing on design-led manufacturing. As a subsidiary of midcap-IT major Cyient, it leverages the parent company's global expertise and reputation.

With the ongoing US-China trade war prompting companies to diversify supply chains and reduce reliance on Chinese manufacturing, Cyient DLM is emerging as a strong alternative, particularly in industries that require high precision and stringent quality standards.

The company focuses on high-entry-barrier sectors such as aerospace, defence, medical technologies, industrial, and railways-industries where reliability, compliance, and long-term partnerships are critical.

By spanning the entire electronics production lifecycle, from product design to manufacturing, testing, and supply chain management, Cyient DLM offers a comprehensive solution for clients looking to shift away from China.

Its strong presence in critical sectors makes it an attractive manufacturing partner for global firms seeking to establish a more resilient supply chain.

A major portion of its revenue i.e. 77% comes from manufacturing printed circuit board assemblies (PCBA), while the remaining is derived from box builds, cables, and precision machining.

With 46% of its revenue coming from exports to Europe, North America, China, and Japan, and 54% from the domestic market, Cyient DLM is well-positioned to benefit from shifting trade dynamics.

In the December 2024 quarter, Cyient DLM reported a robust 38.4% year-on-year revenue growth to Rs 44.4 bn, driven by strong demand across key sectors. However, net profit declined by 9.8% to Rs 1.7 bn due to various operational factors. Despite this, the company remains optimistic about its long-term growth trajectory.

Looking ahead, Cyient DLM is targeting a 30% year-on-year revenue growth in FY26, in line with the broader industry expansion.

For more details, see the Cyient DLM company fact sheet and quarterly results.

#6 PG Electroplast

Next on the list is PG Electroplast.

PG Electroplast is the flagship company of the PG Group. The company is a prominent player in India's electronic manufacturing services (EMS) industry.

It operates as an integrated service provider with expertise spanning plastic moulding, tool manufacturing, PCB assembly, motor production, final product assembly, and mobile manufacturing.

The company holds the position of the second-largest player in room air conditioning (RAC) finished goods sales in India, supplying a diverse clientele.

Besides air conditioners, it manufactures semi-automatic and fully automatic washing machines, and air coolers, and is the second-largest ODM player in the washing machine segment.

Additionally, it provides plastic moulding solutions for consumer durables and electronics companies while assembling printed circuit board assemblies for television manufacturers.

With its strong product offerings, PG Electroplast is well-positioned to benefit from the ongoing US-China trade war, as global companies seek alternative manufacturing hubs beyond China.

The shift in supply chains and the increasing focus on local manufacturing in India present growth opportunities for the company. In the December 2024 quarter, PG Electroplast's revenue surged 81.9% to Rs 9.7 bn from Rs 5.3 bn, while its net profit skyrocketed by 109% to Rs 401 m.

Going forward, the company has announced plans to invest Rs 3.8 bn in capital expenditure to expand its RAC segment across two locations in India, reinforcing its long-term growth strategy.

For more details, see the PG Electroplast company fact sheet and quarterly results.

#7 Amber Enterprises

Last on the list is Amber Enterprises.

Amber Enterprises, a leading player in India's air conditioner OEM and ODM industry, holds a significant 29% market share in the air conditioning market.

The company boasts a well-diversified product portfolio, including room air conditioners (RAC), heat exchangers, fans, condensers, motors, and case liners.

In addition to these, it manufactures printed circuit board assemblies (PCBA) for consumer durables, home appliances, and the telecom sector.

The company also produces various components such as motors and mobility applications for consumer durables, reinforcing its presence in the electronics manufacturing space.

With its strong foothold in the electronics segment, Amber Enterprises is well-positioned to benefit from the ongoing US-China trade war.

As global supply chains shift and companies look for alternative manufacturing destinations outside China, India's manufacturing ecosystem is gaining momentum, and Amber Enterprises stands to capitalize on this trend.

For the December 2024 quarter, the company reported a strong 64.8% jump in revenue to Rs 21.3 bn from Rs 12.9 bn in the previous year. It also posted a net profit of Rs 370 m, a significant turnaround from a net loss of Rs 5 m a year ago.

Going forward, Amber Enterprises aims to strengthen its market position through diversification and targeted expansion.

The management is focused on leveraging its recent joint ventures and acquisitions to enhance its product offerings across various industries, ensuring sustained growth in the coming years.

For more details, see the Amber Enterprises India company fact sheet and quarterly results.

Conclusion

India has been making strong strides toward self-reliance in electronics manufacturing, driven by initiatives like the Production-Linked Incentive (PLI) schemes, Make in India, and the India Semiconductor Mission.

The government's US$ 15 bn semiconductor incentive plan has already attracted global players like Foxconn and TSMC, while domestic giants such as Reliance and Tata are investing heavily in semiconductor and chip manufacturing.

These efforts align with India's ambition to become a global electronics hub, reducing dependency on imports and strengthening its position in the supply chain.

Lowering tariffs on US imports could provide an added boost by reducing input costs, making Indian manufacturers more competitive, and attracting more global brands to set up production in India.

With the ongoing US-China trade tensions, India has a golden opportunity to expand its footprint in the global electronics market, and these 7 EMS stocks are well-positioned to benefit from this shift.

However, investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information?purposes only. It is not a stock recommendation and should not be treated as?such. Learn more about our recommendation services here...