Stocks that are upbeat from telecom PLI push

MUMBAI: Shares of telecom equipment makers like Dixon Technologies, D-Link India, ITI, Sterling Technologies, Tejas Network and Shyam Telecom surged on Wednesday after the Union Cabinet cleared the Production Linked Incentives (PLIs) programme for the segment in an attempt to boost local manufacturing.

The PLI scheme for the sector is worth Rs 12,195 crore over 5 years, which could lead to enhanced production of more than Rs 2.4 lakh crore with exports of around Rs 2 Lakh crore.

“A production opportunity of over Rs 2.4 trillion over five years is sizable and most of the telecom equipment manufacturers may like to exploit this opportunity” said Binod Modi, head – strategy, Reliance Securities. “Global companies like Samsung, Ericsson, LG, Nokia among others might be showing interests, but domestically companies like Dixon Technology, GTL Infra, ITI and Shyam Telecom are expected to benefit.”