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Best Electronic Manufacturing Stocks in India

Electronics manufacturing sector in India is set to reach $18bn by 2025. Check out these stocks that will benefit the most.

Best Electronic Manufacturing Stocks in India

Electronic devices such as air conditioners, refrigerators, washing machines, etc, have switched from the luxury category to basic necessities. In the fast-paced world, these products are a part of daily life. 

Apart from these appliances, good quality & designer light bulbs, ceiling fans, etc, are in more demand than ever in India. In this article, let us understand how this sector has shaped itself and the best electronic manufacturing stocks in India.

Electronics manufacturing industry overview

The Indian electronics manufacturing sector is being shaped by three main factors. These factors are rising incomes, a fast pace of life, and a desire for more luxury. Indian consumers have changed. They no longer just want cheap, low-quality products. A large group now seeks high quality even if it costs more.

Nowadays, with life’s fast pace, people do not have the time to tackle daily chores like laundry and doing the dishes. After grinding all day, they prefer to buy gadgets that handle these basic jobs. 

The demand for luxury homes is rising in metro areas and Tier 1 and Tier 2 cities. People want the best interiors for their house and the best appliances that go with it. People are spending billions of rupees for more luxury. This has given rise to the luxury segment of home appliances. Companies are presenting innovative products to cater to this segment. For example, companies are selling fans fitted with air purifiers, etc. 

Also read: The price of lifestyle inflation: A financial reality check

The Indian summer season and rising temperatures are forcing people to spend money on air conditioners. This product was previously seen only in rich homes and is now a very common product among the middle class. The Indian AC market is expected to reach ₹50,000 crore by FY29. 

Top electronics manufacturers in India

Let us check out some of the top electronics manufacturing stocks ranked by market value as of 26 November 2024. We will compare their financial stats.

  1. Havells India Ltd: Havells is India’s top producer of power distribution equipment and a company that deals in fast-moving electrical products. Flexible and power cables: In 2Q FY25, the flexible and power cables segment accounted for about 39.8% of the company revenues. This company has customers in over seventy countries and 15 manufacturing plants. 
  1. Dixon technologies (India) ltd: This company is involved in the manufacturing of consumer goods, lighting, and mobile phones in India. Dixon has 23 manufacturing units and 3 R&D facilities. In the first half of the financial year 2025, the mobile and electronic manufacturing services segment contributed 81% to its sales. 
  1. Voltas Ltd: Voltas a Tata group company, is a leading manufacturer of air conditioners in India. According to the company website, every one-in-four room AC is a Voltas product. With manufacturing spread across eight nations, this company made 61% of its total revenues from the unitary cooling business in Q2 of FY25. 
  1. Kaynes technology india ltd: Kaynes technology is a leading end-to-end and Internet of Things or IoT solutions-enabled integrated electronics manufacturing company. Industrial and EV verticals contributed 54.3% of its total revenue in H1FY25. With customers in over 28 countries, this company boasts a total of 12 advanced manufacturing plants as of the same period. 
  1. Blue Star ltd: A leading ventilation, heating, and air conditioner manufacturer, Blue Star owns 7 manufacturing units across the nation. In the first half of FY25, the company earned 93% of its revenue from the Indian subcontinent. The company earned 62.7% of its revenue from EMP and commercial air conditioning systems in Q2FY25.

Also read: Decoding strategies: The growth journey of Voltas and Blue Star

Financial performance of the aforementioned companies in FY24: 

Fundamental metrics (In ₹ Cr) Havells IndiaDixon techVoltasKaynes technologyBlue star
Market cap1,07,53393,22155,50138,18336,999
Sales18,59017,69112,4811,2749,685
Expenses16,70916,98612,1451,1009,017
Profit before tax1,707494486161557
Net profit1,271375248126414
Total Debt and borrowing303489744279 243

According to the above financial ratios some key conclusions can be drawn about electronic manufacturing companies: 

  • All these companies have healthy interest coverage ratios, meaning they can easily fulfill their interest obligations. 
  • The inventory turnover ratio for these companies is healthy meaning goods are being sold regularly and manufacturing is not wasteful.
  • Net profit margins for some of these companies are very low. 
  • Their P/E and P/B ratios are high, hinting towards some overvaluation. 

Also read: Inventory Turnover Ratio

Bottomline

If you are looking forward to an investment in the best electronics manufacturing stocks in India, then conduct research and choose your investment wisely. Always remember that past returns do not guarantee future results. 

FAQs

1 – Which is the biggest electronics manufacturing company in India?

Havells takes the crown as the largest manufacturer of electronic goods in India. Sporting a hefty ₹1,07,533 crore market valuation as of 26 November 2024, Havells crafts everything from cool ceiling fans and shiny light bulbs to fresh air purifiers. Kicked off in 1958, this heavyweight jumped onto the National Stock Exchange scene in 2001.

2 – Which is the biggest electronics manufacturing company in the world ?

Foxconn takes the top spot as the world’s largest electronics manufacturer. They put together iPhones and iPads for Apple, craft Sony gadgets, and assemble Xbox consoles. Based in Taiwan, their market worth reached a massive ₹7.2 trillion rupees on 26 November 2024. In the fiscal year 23, their earnings hit the roof with a net gain of ₹51,917 crores of rupees. And they also put together laptops and personal computers.

3 – Which is the best electronics manufacturing stock for the long term ? 

When planning long-term investments, an investor looks for stability, future prospects of the company, and its past financial record. If we look at these factors, then Havells India Ltd can be considered as a long-term investment. This company has a good past financial record. However, due diligence must be conducted before making any investment decision. 

4- Which are the 5 biggest electronics manufacturing companies in India ? 

The comparison here is being done on the basis of market value as of 26th Nov 2024. The list of companies includes – Havells India, Dixon Tech, Voltas, Kaynes Technology, and Blue Star. In FY24, these five companies did a combined revenue of ₹59,721 crore. Always remember that being the biggest does not mean being the best. Do your research properly. 

5- What factors impact the electronics manufacturing sector ? 

The manufacturing industry of electronics is impacted by the competition factor. Both the organized and unorganized sectors have numerous participants on a local and worldwide scale. Also, companies whose revenue majorly depends on AC sales generally take a revenue hit in Q4 due to the winter season in India. Many other seasonality and cyclical factors affect these companies. 

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