Kaynes Tech, Dixon Shares Dip Despite Jefferies' Strong Growth Forecast for EMS Firms

• Shares of Kaynes Technology India and Dixon Technologies (India) fell up to 5.5% on Tuesday due to profit booking.
• Kaynes Technology declined 5.37% to Rs 3,783 on NSE; Dixon Technologies settled 3.11% lower at Rs 11,676.
• Brokerage firm Jefferies maintains a positive outlook, projecting 44% CAGR in EPS for Indian EMS firms from FY25-FY28.
• The government's production-linked incentive (PLI) scheme is highlighted as a key driver for sector growth.
• Jefferies estimates Rs 100 billion capital expenditure for key EMS firms between FY26-FY28, with 15-17% RoCE.

Why It Matters: EMS stocks fell on profit booking, but Jefferies predicts strong future growth for the sector.