ICICI Pru AMC Co-CIO: Market 'Mistake' Overvaluing EMS Stocks

• Anish Tawakley, Co-CIO (Equity) of ICICI Prudential AMC, avoids EMS companies like Dixon Technologies and Kaynes Technology.
• He believes the market is overvaluing these companies by including non-recurring PLI (Production Linked Incentive) earnings.
• Tawakley questions the competitive advantage of EMS firms, despite their recent history as wealth creators.
• He highlights disproportionate market capitalization increases linked to PLI benefits, citing a ₹1,000 crore PLI leading to ₹10,000-₹15,000 crore market cap jump.
• EMS stocks have recently corrected 35-50% from their peaks, aligning with his concerns about their valuation.

Why It Matters: ICICI Pru AMC Co-CIO warns against overvaluation of EMS companies due to non-recurring PLI benefits.