Experts list 6 stocks which are likely to benefit from Rs 76k-cr semiconductors PLI scheme, the most

The Union Cabinet last week approved a production linked incentive (PLI) scheme for semiconductor and display board production in the country.  It envisages investment of Rs 76,000 crore in semiconductor production over the next 5-6 years, I&B Minister Anurag Thakur had said on 15 December.

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Experts are of the view that all stocks that deal with automobiles, power electronics, railways engines, telecom towers, electronic items, etc. will be positively impacted by the government's scheme.

This scheme is likely to provide incentive support to companies engaged in semiconductor packaging, design, fabs, technology, etc. as well as generate high employment.

“We believe the automobile sector will benefit the most from the scheme. Along with it, other sectors including consumer durables manufacturing (electronic), other manufacturing (telecom towers and railway engines) will also benefit,” Ajit Mishra, VP- Research, Religare Broking Ltd, said.

We have collated a list of stocks that are likely to benefit the most from the Rs 76000 cr PLI scheme:

Expert: Harsh Patidar, Senior Research Analyst, CapitalVia Global Research Ltd.

In this technology era Government’s Rs 76,000 crore move will definitely help the sector and will strengthen India’s footing across the world. The program aims to provide attractive incentive support to companies that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Silicon Photonics, Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

Semiconductor manufacture and some IT firm are most likely to benefit from government move on SPEL Semiconductor (SPEL Semiconductor is engaged in offering electronic integrated circuits (ICs).

ASM Technologies:

It operates IC assembly and test facility) and ASM Tec (ASM Technologies Limited is an information technology (IT) consulting and software services company.

The Company offers business and technology consulting, enterprise solutions, application maintenance and product support etc.).

Tata Elxsi Ltd:

Tata Elxsi Limited is engaged in the design and development of computer hardware and software. The Company operates in two segments: System integration & support, and Software Development & Services) are most beneficiaries companies from this move.

Expert: Ajit Mishra, VP- Research, Religare Broking Ltd

With the introduction of the PLI scheme, the government has plans to push manufacturing of semiconductors as well as support to fulfil rising demand. Besides, this scheme is likely to provide incentive support to companies engaged in semiconductor packaging, design, fabs, technology, etc as well as generate high employment.

“It would benefit companies which are users of the semiconductor which include Auto stocks like Maruti, M&M, and Bajaj Auto. Moreover, even consumer durables manufacturing companies like Dixon Tech,” he said.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)