Electronics margins shrink, rally takes a hit as investors reassess growth and valuations

A sector that underpinned the once-popular “Make in India” trade is faltering as shrinking margins and slowing growth shake investor confidence, Bloomberg has reported.

Following triple-digit share gains in recent years, electronics manufacturers are facing a sharp reversal as investor enthusiasm cools. Among them, shares of Dixon Technologies India and Kaynes Technology India have tumbled more than 15 per cent this year, underperforming the broader market rally.