Global brokerage Jefferies has expressed a preference for Kaynes Technology India over Dixon Technologies (India) as India moves to deepen its domestic electronics component manufacturing industry.

The brokerage has assigned a Buy rating to Kaynes Technology, while maintaining Hold ratings on Dixon Technologies and Syrma SGS Technology, according to a report in the Economic Times Markets.

Jefferies said it expects stronger competition ahead for mobile assembly players in India's electronics manufacturing sector. The brokerage also advised caution on Syrma SGS Technology following a sharp rally in the company's shares.

Kaynes Technology India is a Mysuru-based provider of electronics manufacturing services and technology solutions, offering integrated design and manufacturing across automotive, industrial, aerospace and defense, medical, and other segments. Dixon Technologies, headquartered in Noida, is one of India's largest homegrown electronics manufacturers, with operations spanning consumer electronics, home appliances, mobile phones, and lighting products. Syrma SGS Technology, based in Gurugram, provides electronics design and manufacturing services across industrial, automotive, healthcare, and consumer segments.

The brokerage's stance comes as India pushes policy initiatives to strengthen domestic electronics component production, building on the success of production-linked incentive (PLI) schemes that have expanded the country's electronics assembly ecosystem in recent years. The policy focus has increasingly shifted from finished-goods assembly toward components, as assembly alone captures a smaller share of the value chain, a dynamic that also frames the tougher competitive outlook Jefferies anticipates for mobile assembly players. For investors tracking the sector, subsequent brokerage commentary and the design of any new component-focused incentive schemes are likely to shape how the relative positioning of these three companies evolves.

Source: Economic Times Markets