Dixon Technologies stock weighed down by the competition concerns

Dixon's revenue growth was led by mobiles & EMS (194 per cent), offset by 23 per cent fall in consumer electronics. Home appliances and lighting were flat

Increasing competition in the electronics manufacturing services (EMS) industry is impacting valuations.

 

Market leader Dixon Technologies has been hit hard though it remains the leader in an industry with strong growth.

 

Listed players such as Kaynes Technology, Avalon Technologies, Syrma SGS Technology, Cyient DLM, Data Patterns, Dixon, and Amber Enterprises have all seen some price correction. This comes despite orders from aerospace, industrials, automotive, and infrastructure sector clients. 

 

Increasing competition has led to investors pulling back valuations.

 

EMS players have big capex plans driven by policies like production-linked incentive scheme (PLI). The aggregate order book of the seven companies mentioned