EMS + semiconductor (OSAT/PCB)
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Kaynes Technology India | Held | 67.09 | 8.00% | 23,193 Cr | EMS + semiconductor (OSAT/PCB) | |
| Dixon Technologies | Not held | n/a | n/a | n/a | Dixon (P/E 46x, mcap Rs 86,679 cr) is 92% mobile/EMS at 2.6-3.0% EBITDA margin with ROCE falling to 34% from 45% after Mobile PLI 1.0 expiry; Kaynes has 5x the margin, a 2.3x order-book cover and component (OSAT/PCB) optionality Dixon lacks. | Screener · Tijori |
| Syrma SGS | Not held | n/a | n/a | n/a | Syrma (P/E 85x, ROE 14%, FY26 PAT Rs 346 cr) is priced higher than Kaynes on trailing earnings with a more consumer/auto-commodity mix and no semiconductor/PCB backward-integration programme. | Screener · Tijori |
| Amber Enterprises | Not held | n/a | n/a | n/a | Amber (P/E 127x, ROE 6%) is a seasonal RAC-component business (Q1FY27 PAT just Rs 3 cr on Rs 3,888 cr sales) with lower margins and heavier capex intensity; Kaynes' industrial/defence mix is less seasonal and higher margin. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
We do not own TCS, HCL Tech or Wipro because if we are going to hold a small tactical position in a sector with a capped upside we want the cheapest large franchise with the cleanest AI narrative — Infosys. Dixon (2.6–3% margins, PLI 1.0 expired, ROCE falling) is volume without value; Syrma and Amber are priced higher than Kaynes on trailing earnings with lower margins. PB Fintech is priced at 90x+ for an insurance-distribution model; Eternal is a quick-commerce cash-burn story we hold only in the AIFs. Persistent and Sagility lack Indegene's domain moat.
All sectors we avoid or underweight →Kaynes (2.4%, Core) is India's highest-margin scaled EMS company (15–16% EBITDA vs 3% at Dixon) with the country's first private OSAT (chip packaging) and HDI-PCB plants ramping in FY27 — the stock is half its 2025 high on working-capital worries we think are transitional. Paytm (2.2%, Turnaround) turned profitable in FY26, is the only listed merchant-payments platform (device subscriptions, soundboxes, loan distribution) and should compound revenue 20–25% with operating leverage now that the payments-bank overhang is closed. Indegene (1.2%, Core) grows 15–20% with 15%+ ROE serving 20 of the top-20 global pharma companies at 30x FY27E. Infosys (0.7%, Core) is the tactical floor trade: 16.6x FY27E, a 3%+ dividend-plus-buyback yield, the best balance sheet in the sector.