Shares of Dixon Technologies Ltd., Kaynes Technologies Ltd. and Amber Enterprises Ltd. will be in focus on Tuesday, April 1, after the cabinet on Friday, approved the production-linked incentive scheme for passive or non-semiconductor electronic components.

The scheme will have an outlay of ₹22,919 crore and is the first such, which focuses on promoting the manufacturing of passive electronic components.

The minister said that that segment will serve the requirements of several sectors, including telecom, consumer electronics, automobile, medical devices, power sector etc.

Brokerage firm Nomura believes that the initial contours of the new PLI component scheme is likely to provide further impetus to and increase domestic value addition in mobiles from 18% to 20% to 35% to 40% over the next five years.

Dixon Technologies, which is investing ₹400 crore on display assembly with a potential revenue of ₹3,000 crore by financial year 2027, as highlighted by the management, is likely to be a key beneficiary of this, according to Nomura.

The hybrid incentive for high density PCB should benefit Kaynes Technology, which is investing ₹1,400 crore in this segment, Nomura said. The brokerage has a “buy” recommendation on both Dixon and Kaynes.

Jefferies wrote in its note that Amber and Kaynes, on which it has “buy” recommendations, are focused on margin-accretive components.

However, for Dixon Technologies, on which Jefferies has a “underperform” rating, nearly 80% of its sales mix is focused on low-margin OEM products.

Shares of Dixon Technologies are down 31% from their recent peak, which is above ₹19,000 per share. On the other hand, shares of Kaynes Tech are still down 40% from their top, while those of Amber Enterprises are trading 12% below those levels.