Wired for growth: Strong outlook fuels EMS players' success circuit

The sector saw a dual dynamic in Q2 - revenue growth acted as a current of strength, yet profit margins faced resistance

Led by Dixon Technologies (India), stocks of listed electronics manufacturing services (EMS) companies saw robust gains in trading on Friday. The two largest players in the sector, Dixon and Amber Enterprises India, saw gains of 8 per cent and 2.7 per cent, respectively, while other players also ended in the green.

The launch of a cellphone manufacturing facility by Dixon and a strong outlook led to a positive sentiment for the sector.

Dixon and Kaynes Technology have been the best performers on the returns front, posting a rise of 17–22 per cent over the past three months, while