While shares of Dixon Technologies and Syrma SGS traded with gains of over 4%, Amber Enterprises rose nearly 3%. Dixon and Syrma were among the top gainers on the Nifty 500 index on Thursday as investors cheered the government’s move, which is expected to lower input costs and improve domestic value addition across key electronics segments.
How will the latest government move benefit Dixon and peers?
The Centre on Tuesday issued three notifications providing BCD exemptions on specified goods used in electronics manufacturing.
Under Notification No. 25/2026-Customs, the government exempted customs duty on specified inputs and parts used in the manufacture of display assemblies for automotive, medical and industrial applications. The move is aimed at boosting domestic manufacturing of such display assemblies. Similar duty concessions are already available for display assemblies used in mobile phones, wearable devices, televisions and interactive flat panel displays.
Notification No. 26/2026-Customs exempts customs duty on specified goods used in the manufacture of inductor coil modules for wireless charging in cellular mobile phones, a measure aimed at deepening domestic value addition in smartphone manufacturing.
Meanwhile, Notification No. 27/2026-Customs exempts specified capital goods used in the manufacture of Lithium-Ion cells. The revised notification removes the earlier restriction that linked the exemption to batteries meant for specific end uses such as mobile phones, electric vehicles or energy storage systems, thereby extending support for Lithium-Ion cell manufacturing across a wider range of electronics, mobility and energy storage applications.
Dixon Technologies is India’s largest domestic contract manufacturer for smartphones, IT hardware and television sets. In the case of these exemptions, the lower input costs will help improve not only the company’s unit economics, by improving their margins, but also aid growth in its mobile and electronics divisions.
For Syrma SGS, the company holds a distinct competitive edge in the domestic manufacturing of magnetic products, including inductor coils, chokes and transformers. A duty exemption on inductor coil modules will make domestic assembly more competitive against direct imports from China.
Kaynes Tech also has a focus on automotive, aerospace and industrial electronics. The company depends on embedded systems, sub-assemblies and display modules. Cheaper components would provide a boost to the company’s margins.
Why is HSBC betting on Syrma SGS?
Brokerage firm HSBC initiated coverage on Syrma SGS on Thursday with a “Buy” rating and a price target of ₹1,750, indicating an upside potential of 28% from current levels.
The brokerage said in its note that backward integration and inorganic expansions are key to the company’s growth, while strong competition in low-value segments remains a concern.
Despite the increasing competition, HSBC sees Syrma SGS to be well positioned, given its history of supplementing organic growth with inorganic acquisitions and joint ventures.
Shares of Syrma SGS were up 3.2% in early trading on Thursday at ₹1,410.4. The stock was the top gainer on the Nifty 500 index during the morning session.
Shares of Dixon Technologies were also trading 2.7% higher in early trade on Thursday at ₹13,298. The stock has also turned positive on a year-to-date basis, having closed above the ₹13,000 mark for the first time since November 2025.
