Top Electronic Manufacturing Shares in India 2024: Electronic Manufacturing Companies to Add to Your Watchlist

Imagine a future where India's electronic manufacturing sector doubles its output in just five years.

Can it really happen?

According to the Ministry of Electronics and Information Technology, this ambitious target is within reach.

Projections estimate the industry will skyrocket to an astounding US$ 250 bn from its current export value of US$ 125-130 bn.

But that's not all. This surge is set to revolutionise employment, doubling the workforce from 2.5 m to around 5 m.

The Indian electronics manufacturing industry is experiencing a significant boom. With a domestic production value exceeding US$ 101 bn in FY23, the sector is poised for further growth.

This expansion is driven by several factors, including a growing domestic market for electronic products, government initiatives promoting local manufacturing, and a skilled workforce.

Let's have a look at some of the prominent Indian electronic manufacturing companies.

#1 PG Electroplast

First on the list is PG Electroplast.

PG Electroplast is the flagship company of PG group. While the PG group started its journey in 1977, PG Electroplast was formally set up in 2003. It's a leading, diversified Indian electronic manufacturing services provider.

The company caters to leading Indian and global brands. Some clients include major reputed brands like LG Electronics, Carrier, Jaguar, Kohler, Usha, Whirlpool, SMR, Bright Auto, Groupo-Antolin, etc.

The company has 8 manufacturing units across Greater Noida in Uttar Pradesh, Roorkee in Uttarakhand, and Ahmednagar in Maharashtra.

After positioning itself as a dominant force in the EMS sector, it's growing by foraying into emerging sectors which are expanding India's electronic market, driven by the Make in India initiative.

PG Electroplast's acquisition of a stake in Solarstream Renewable Services for solar power generation at their Greater Noida manufacturing plant was a strategic move towards sustainability and operational efficiency.

By using solar power to meet electricity requirements, the company reduced dependency on conventional energy sources and mitigated power costs.

PG Electroplast Financial Snapshot (2020-24)

	FY22	FY23	FY24
Revenue Growth (%)	58%	94%	27%
Gross Profit Margin (%)	20%	18%	20%
Operating Profit Margin (%)	8%	8%	10%
Net Profit Margin (%)	3%	4%	5%
Return on Capital Employed (%)	13%	17%	19%
Return on Equity (%)	12%	19%	13%

Data Source: Screener.in

PGEL has grown more than 10x in eight years, from a revenue of Rs 2,630 m in FY16 to Rs 27,470 m in FY24, at a 34% CAGR compounded annual growth rate (CAGR).

The order book for the product business remains robust, and the company hopes to accelerate product business growth in FY25.

The company foresees large opportunities in plastic molding and consumer durables like washing machines, room ACs, refrigerators, etc., along with opportunities in the ODM space.

Improving operational efficiencies will lead to better profitability, higher cash flows, and thus, reinvestment. This will in turn improve the company's capabilities, enabling it to reap future benefits.

The company has provided strong guidance for FY25. It's anticipating a 24% YoY revenue growth to Rs 34 bn. This will be driven by a 44% increase in its product business (RAC, WM, coolers) due to low channel inventory and a robust order book.

Additionally, the joint venture (JV) with Jaina Group aims for Rs 6,000 m (m) in revenue by selling over 700,000 TV units in FY25, doubling from 350,000 units in FY24.

The company projects a net profit of Rs 2 bn, a 46% rise from the previous year, and plans to invest approximately Rs 3.8 bn in capital expenditure for two new greenfield facilities in Rajasthan and Noida, as well as further expansion of its Supa facilities.

The TV business, currently yielding a 2% margin, will transition to a new 50% JV with Goodworth Electronics in FY25. A higher proportion of the high-margin (10% plus) product business is expected to enhance overall margins.

For FY25, it expects revenue of Rs 34 bn, a growth of 23.8% over FY24. Net profit is also likely to grow by 46% in the next year to Rs 2 bn.

To know more, check out PG Electroplast's factsheet and quarterly results on our website.

#2 Havells India

Second on the list is Havells India.

Havells India is a leading fast-moving electrical goods company with a presence across India.

The company's product range includes industrial & domestic, circuit protection, switchgear, cables & wires, motors, fans, power capacitors, luminaires for domestic commercial & industrial applications, modular switches, water heaters, and domestic appliances.

It covers the entire gamut of household commercial and industrial electrical needs.

Havells India Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	-6%	11%	33%	21%	10%
Gross Profit Margin (%)	40%	40%	35%	33%	34%
Operating Profit Margin (%)	11%	15%	13%	10%	10%
Net Profit Margin (%)	8%	10%	9%	6%	7%
Return on Capital Employed (%)	22%	30%	27%	22%	24%
Return on Equity (%)	17%	20%	20%	16%	17%

Data Source: Screener.in

Coming to its financial, the revenue grew by 10% to Rs 185.9 bn as the supported by infrastructure-led demand.

The profit-earning capacity of the company has increased lately. For the financial year 2024, the company reported a total profit of Rs 12.7 bn up 19% from financial year 2023. Rising input material costs wiped off the rise in volume.

Havells India is witnessing positive signs of demand growth in categories linked to the real estate sector.

The company reports a strong demand environment for room air conditioners, though a rise in raw material prices might lead to price hikes.

Havells India is also increasing its focus on the B2B channel, with significant efforts to empower retailers and wholesalers.

In the professional luminaries' segment, innovation and value-added products are driving substantial growth.

Meanwhile, in the cable and wire segment, there is no project cost escalation, although there has been a slight delay in the operationalisation of new plants.

To know more, check out Havells India factsheet and quarterly results on our website.

#3 Dixon Technologies

Third on the list is Dixon Technologies.

Dixon is a multinational electronics manufacturing and services company. Its core competence lies in manufacturing consumer electronics used daily like televisions, washing machines, smartphones, LED bulbs, battens, downlighters, and CCTV security systems.

While the company hasn't developed a brand of its own, its long-term contracts with some of the most well-recognised brands like; Samsung, Xiaomi, Panasonic, OnePlus, and Philips, give them an enviable edge.

Dixon Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	47%	47%	66%	14%	45%
Gross Profit Margin (%)	12%	11%	9%	10%	9%
Operating Profit Margin (%)	5%	5%	4%	4%	4%
Net Profit Margin (%)	3%	2%	2%	2%	2%
Return on Capital Employed (%)	34%	30%	23%	24%	29%
Return on Equity (%)	22%	22%	19%	20%	22%

Data Source: Screener.in

In the financial year 2024, Dixon Technologies reported a 45.1% growth in overall sales, with total revenues of Rs 177 bn for the financial year 2024.

The company's total profits increased by 47%, driven by changes in sales mix, operating leverage, cost optimization, and efficiency measures across all businesses. The company also implemented a strategic price hike across various business segments.

Dixon Technologies has expanded its production capabilities to create a capacity for 45 m smartphones and 40 m feature phones.

To meet the increasing order book in its mobile business, the company has made substantial incremental investments.

Additionally, Dixon has launched a state-of-the-art R&D center for display devices in Noida and commenced mass production at a new facility in Dehradun, focusing on home appliances.

Looking ahead to FY26, Dixon Technologies anticipates lower capital expenditure than the RS 5.69 bn spent in FY24.

Planned major investments include advancements in mobile display technology, meeting Production-Linked Incentive (PLI) commitments, and a joint venture with Ericsson for inverter controller boards.

The company expects significant growth in 2025 and beyond, primarily driven by its mobile and EMS divisions, which contribute to 62% of its revenue.

Dixon anticipates healthy revenue growth and aims to capture 10-11% of the smartphone BOM cost through its display manufacturing efforts.

It is actively seeking large contracts in the EMS space and exploring new verticals, including automotive electronics and industrial electronics, to further diversify and expand its business.

For more information about the company, you can refer to its financial factsheet.

#4 Symphony

Fourth on the list is Symphony.

Symphony provides residential mobile commercial packaged and central air-cooling solutions for domestic and industrial customers in 60 countries across the globe.

Established in 1988, Symphony is engaged in the manufacturing and trading of residential, commercial, and industrial air coolers in the domestic and international markets. It is the largest air cooler manufacturer in the world.

Over the years, Symphony has built its moat by focusing on product innovation and distribution for cooling solutions that people purchase while graduating from a fan.

Symphony Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	31%	-18%	15%	14%	-3%
Gross Profit Margin (%)	47%	45%	45%	44%	48%
Operating Profit Margin (%)	19%	16%	16%	12%	15%
Net Profit Margin (%)	17%	12%	12%	10%	13%
Return on Capital Employed (%)	29%	16%	17%	15%	19%
Return on Equity (%)	28%	14%	14%	13%	20%

Data Source: Screener.in

In FY24, Symphony experienced a decline in sales by 2.6% YoY to Rs 11.5 bn. However, its overseas subsidiaries reported positive results with a top line of Rs 4.3 bn, marking a 13% YoY increase.

The company achieved a positive operating income in FY24, which was a significant improvement from the negative operating income in FY23.

In terms of profitability, the company reported a net profit of Rs 1.5 bn for the FY24, up 28% from Rs 1.2 bn reported in the year-ago period.

The company aims to restore its historical operating margins of 32% within the next 2-3 years and bring the top line back to previous levels before focusing on further growth.

However, it is dealing with an accumulated loss of approximately Rs 8.6 bn in its Australian subsidiary.

For more information about the company, you can refer to Symphony's fact sheet and quarterly results.

#5 Bajaj Electricals

Fifth on the list is Bajaj Electricals.

Bajaj Electricals is an Indian consumer electrical equipment manufacturing company based in Mumbai, Maharashtra. It is a part of the gigantic Bajaj Group.

It has diversified with interests in lighting, luminaries, appliances, fans, LPG-based generators, engineering and projects.

Its main domains are lighting, consumer durables, engineering and projects. Lighting includes lamps, tubes, and luminaires.

Bajaj Electricals Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	-25%	-8%	5%	2%	-5%
Gross Profit Margin (%)	33%	34%	31%	31%	30%
Operating Profit Margin (%)	4%	7%	5%	8%	6%
Net Profit Margin (%)	NM	4%	3%	4%	3%
Return on Capital Employed (%)	7%	12%	13%	18%	13%
Return on Equity (%)	NM	11%	8%	11%	9%

Data Source: Screener.in

In FY24, Bajaj Electricals reported a 5.1% decrease in total sales, amounting to Rs 46.4 bn, attributed to challenges in the consumer products business due to weak demand for kitchen appliances and general trade.

However, the company experienced growth in alternate channels, fans business, coolers, and Morphy Richards.

The company's net profit for FY24 significantly dropped to Rs 1.3 bn, down 39% compared to the previous year, mainly due to the underperformance of the consumer products business, which includes air coolers, fans, room heaters, and kitchen appliances.

Bajaj Electricals invested Rs 1.24 bn in FY24 and plans to invest approximately Rs 1.5 bn over the next three years, with a focus on new product development and acquiring tools and moulds.

Looking ahead, Bajaj Electricals is concentrating on new product launches and expanding its product portfolio, particularly with innovations such as small motor BLDC fans and expanding offerings under the Morphy Richards brand.

The company expects growth in segments including fans, coolers, water heaters, and lighting.

It is confident in the growth potential of its consumer products business and aims to enhance brand architecture and product quality to drive future growth.

To know more about the company, check out Bajaj Electricals' fact sheet and quarterly results.

#6 Polycab India

Sixth on this list is Polycab India.

The company is one of the largest manufacturers of cables, wires, and allied products.

It also forayed into fast-moving electrical goods (FMEG) segment such as fans, switches, LED lights, solar inverters, and pumps.

Polycab India has 25 manufacturing facilities spread over seven locations in India. It has a strong distribution network of over 4,600 distributors covering over 200 thousand retail outlets in India.

Apart from a strong domestic presence, Polycab India also exports to over 60 countries.

Polycab India Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	11%	0%	39%	16%	28%
Gross Profit Margin (%)	31%	27%	23%	26%	29%
Operating Profit Margin (%)	13%	13%	10%	13%	14%
Net Profit Margin (%)	9%	10%	8%	9%	10%
Return on Capital Employed (%)	29%	24%	21%	27%	31%
Return on Equity (%)	20%	19%	17%	19%	22%

Data Source: Screener.in

In FY24, Polycab India's revenue surpassed Rs 180 bn. Its total revenue for the year was Rs 180.4 bn, marking a 28% YoY increase. This growth was primarily driven by strong volume growth in the cable business.

The domestic cables & wires segment experienced significant volume growth of 30-40% for both the fourth quarter and the entire year. Meanwhile, revenue from the international business saw an impressive 60% sequential growth.

The FMEG business delivered a strong performance, particularly due to a robust quarter for fans. The switches & switchgears segments maintained their strong growth momentum, while the lights & luminaries segment also experienced sequential growth.

Moreover, the strategic EPC business reported a remarkable 169% YoY increase in revenue for the year.

The company's operating income grew 35% YoY, outpacing revenue growth. Operating margins improved to 14%.

Polycab India achieved its highest-ever yearly profit after tax (PAT) of Rs 18 bn, a 41% YoY growth. The PAT margin expanded reaching 10.0%.

In FY24, the company invested Rs 8.6 bn and plans to invest Rs 10-11 bn annually over the next 2-3 years to expand its manufacturing capacities.

Approximately 20% of this will be directed towards the EHV manufacturing plant in Halol.

Additional capital expenditure will be directed towards establishing plants for special-purpose cables, international business cables, and optical fiber cables (OFC) at the Halol facility.

The company also plans to expand its facilities for high-tension, low-tension, and other cables at the Daman facility.

Looking ahead, Polycab India anticipates continued growth and resilience in the Indian economy, expecting normal monsoons, decreasing inflation rates, and potential rate cuts within the calendar year.

To know more, check out Polycab India's financial factsheet and latest quarterly results.

#7 Amber Enterprises

Seventh on the list is Amber Enterprises.

Amber Enterprises India produces heating and ventilation equipment.

The company dominates the original equipment manufacturer (OEM), and original design manufacturer (ODM) market for room air conditioners in India.

The company is engaged in the business of manufacturing consumer durable products.

It designs and produces a wide range of goods, such as HVAC solutions and RAC, RAC, and non-RAC components for mobility applications.

It currently has 23 production facilities spread over 8 locations in India, allowing for a quick turnaround.

Additionally, it produces multi-flow condensers, inverter and non-inverter printed circuit boards, heat exchangers, motors, and other essential and reliable functional components for RACs.

Amber Enterprises' diversification strategy into electronics manufacturing and cooling solutions for railways aims to address investor concerns regarding declining revenue potential from contract manufacturing of air-conditioners.

Despite being the market leader in India's AC contract manufacturing, the company faces challenges due to brands shifting towards in-house production of room ACs.

To counter this, Amber Enterprises plans to achieve an equal revenue contribution from AC contracting, electronics, and railway segments over the next five years.

The company anticipates superior operating margins and return on capital employed in the new business ventures compared to AC contracting, thereby improving overall margins and return ratios.

Amber Enterprises Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	44%	-24%	39%	65%	-3%
Gross Profit Margin (%)	17%	17%	16%	15%	18%
Operating Profit Margin (%)	8%	7%	7%	6%	7%
Net Profit Margin (%)	4%	3%	3%	2%	2%
Return on Capital Employed (%)	17%	9%	8%	11%	10%
Return on Equity (%)	15%	5%	6%	9%	7%

Data Source: Screener.in

For FY24, Amber Enterprises reported a revenue of RS 67.29 bn, reflecting a decrease of 2.9% from FY23.

The consumer durable division generated Rs 50.1 bn in revenue in FY24, a decline of 6.9% compared to the previous year.

The electronics division saw an increase, with revenue reaching Rs 12.4 bn, up 10.3% from FY23.

The railways subsystem and mobility division reported a revenue of Rs 4.8 bn, representing a growth of 13.7% YoY.

The PAT for FY24 was Rs 13.9 bn, compared to Rs 16.4 bn the previous year. Overall capital expenditure for FY24 was Rs 37.3 bn, a decrease from Rs 69.8 bn in FY23.

Amber Enterprises has entered a 50:50 joint venture with Resojet Private Limited to manufacture fully automatic washing machines and acquired a 60% stake in Ascent Circuits for printed circuit board manufacturing.

The company has also formed strategic alliances and joint ventures with Titagarh, Yujin of South Korea, and Nexxbase to expand its product portfolios.

Maintaining a 27% market share in the air conditioner component segment, Amber Enterprises expects growth in the consumer durable division due to a strong season in April and May. The company anticipates a 20% growth rate by year-end for this division.

To know more, check out Amber Enterprise's financial factsheet and latest quarterly results.

#8 Exicom Tele-Systems

Eighth on the list is Exicom Tele-Systems.

Incorporated in 1994, Exicom Tele-Systems specialises in power systems, electric vehicle (EV) charging, and other related solutions.

It has two business divisions, namely power systems and EV charging solutions.

The power systems vertical provides critical power business and delivers overall energy management at telecommunications sites and enterprise environments through power conversion systems ("DC Power Systems") and Li-ion-based energy storage solutions to deliver backup power during grid interruptions.

The company operates in the EV charger business, which offers both slow charging solutions (primarily AC chargers for residential use) and fast charging solutions (DC chargers for business and public charging networks in cities and highways).

Exicom Tele-Systems Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	-21%	12%	9%	54%	68%
Gross Profit Margin (%)	30%	31%	39%	32%	32%
Operating Profit Margin (%)	NM	NM	9%	10%	13%
Net Profit Margin (%)	NM	NM	1%	2%	8%
Return on Capital Employed (%)	NM	NM	22%	22%	25%
Return on Equity (%)	NM	NM	3%	5%	10%

Data Source: Screener.in

In FY24, the company's revenue grew to Rs 10.2 bn compared to Rs 7.1 bn in FY23, a 44% growth.

Meanwhile, profit shot up multifold, from Rs 80 m reported last year to Rs 660 m in FY24.

During the year, the company improved its gross margins by 2% as finance costs reduced.

Segmental wise, its critical power business saw a 59% growth while the main business - EV charging grew at 11% from Rs 2.2 bn to Rs 2.4 bn.

The power business has seen a steep jump in the past three years.

Order performance for the year gone by was Rs 11.1 bn booked. This compares with Rs 9.5 bn in FY23.

Exicom launched upgraded chargers for home, spin air, and gen 1.5 harmony DC chargers for fast charging.

Interesting to note that this is also India's fastest DC charger, engineered to make EV charging effortless.

Exicom stands out as one of the few companies in India offering a comprehensive portfolio of AC and DC chargers, ranging from 3.3 kW to 360 kW. With a pan-India after sales service, the company has successfully deployed over 35,000 EV chargers across 400 locations in India.

The company is currently investing in R&D for next-generation chargers and power conversion equipment.

It's also developing an integrated manufacturing complex in Hyderabad for all product lines.

It has planned a capacity increase from 42k AC chargers to 180k AC chargers in 2 phases.

To know more, check out Exicom Tele-Systems 's financial factsheet and latest quarterly results.

#9 Rashi Peripherals

Nineth on the list is Rashi Peripherals.

Rashi Peripherals is one of the 5 largest IT distributors in India engaged in the business of product distribution and after sales services.

The company is engaged in various product categories, including personal computing, mobility, enterprise, embedded solutions, among others.

They offer end-to-end services such as pre-sales solutions, technical support, marketing services, credit solutions, and warranty management services.

The company recently listed on the stock exchanges and raise money through the SME IPO route.

The company has one of the widest and largest product distribution networks in India with 51 branch offices and 63 warehouses.

Rashi Peripherals Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	-1%	51%	57%	2%	17%
Gross Profit Margin (%)	5%	6%	6%	6%	5%
Operating Profit Margin (%)	2%	4%	3%	3%	3%
Net Profit Margin (%)	1%	2%	2%	1%	1%
Return on Capital Employed (%)	11%	30%	26%	16%	14%
Return on Equity (%)	17%	37%	32%	18%	9%

Data Source: Screener.in

Coming to its financials, the company has faced margin pressure in the past as established players capture a large part of the product distribution business.

The revenue in FY24, has grown by 17.3%. The operating profit for the years also saw an improvement by 18% YoY.

The net income has increased by 17.1%, leading to a 5.6% YoY growth in the earnings per share to Rs 34.1.

The company is expecting to improve margins going forward and it has also reduced debt post raising money via an IPO.

It has paid consistent dividends to shareholders while the company also boasts of high double digit return ratios.

Going forward, the company's continuous efforts to expand its footprint and introduce new products will drive its revenue and net profit in the medium term. It is expecting the data center revenue to kick in from FY25 onwards.

To know more, check out Rashi Peripherals 's financial factsheet and latest quarterly results.

#10 Rishabh Instruments

Last on the list is Rishabh Instruments.

Rishabh Instruments Limited is engaged in the business of manufacturing, design, and development of test and measuring instruments and industrial control products.

The company provides a hands-on, value driven, professional environment considering people its most important asset.

Rishabh Instruments has 4 segments: (a) electrical automation devices; (b) metering, control, and protection devices; (c) portable test and measuring instruments; and (d) solar string inverters.

It has 3 manufacturing units (Nashik, Poland and China), 270+ dealers across the globe reaching 70+ countries and 150+ dealers across India.

Rishabh Instruments Financial Snapshot (2020-24)

	FY20	FY21	FY22	FY23	FY24
Revenue Growth (%)	NA	-3%	21%	21%	21%
Gross Profit Margin (%)	59%	60%	58%	55%	58%
Operating Profit Margin (%)	15%	15%	16%	13%	10%
Net Profit Margin (%)	8%	9%	11%	9%	6%
Return on Capital Employed (%)	11%	30%	26%	16%	14%
Return on Equity (%)	17%	12%	15%	14%	10%

Data Source: Screener.in

In FY24, Rishabh Instruments was able to generate a growth in revenue of 21% YoY. While the net income for the year has declined by 20% YoY.

Rishabh Instruments achieved a 14% revenue growth for its Indian business in FY24.

Although there was a temporary drop in Q4 FY24 due to constraints on the SMT line, Rishabh Instruments expects to recover and catch up in Q1 FY25.

The company anticipates a 20% top-line growth and aims to maintain a 20% EBITDA level for the Indian business in the upcoming year.

Rishabh Instruments is expecting a consolidated EBITDA margin of over 15% for the upcoming financial year.

However, challenges in the die casting division in Poland have impacted the margin outlook. Despite these challenges, the company aims to achieve a double-digit EBITDA margin for the die casting business by the end of the financial year.

It has postponed its plan to invest approximately Rs 1 bn in expanding the die casting business due to a weak outlook.

To know more, check out Rishabh Instruments' financial factsheet and latest quarterly results.

Conclusion

All these companies are poised to capitalise on the electronics manufacturing boom in India. With strong financial performance, rising consumer demand, and favorable sectoral trends, they present intriguing growth opportunities.

However, investors should keep in mind that these opportunities are built on hopes and expectations of the future.

After the market crash of 2022, investors are well aware that hopes and expectations can crumble as soon as they were built.

Carefully analyse the pros and cons before making any investment decision.

Happy investing.

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...