JPMorgan initiates bullish coverage on India’s EMS space; shares of Dixon, Kaynes, and Syrma SGS surge up to 8% on July 9 amid strong earnings growth outlook and Make in India tailwinds.
Shares of Dixon Technologies, Kaynes Technology, and Syrma SGS Technology rallied sharply on July 9, after JPMorgan initiated coverage with an ‘overweight’ rating on all three, citing India’s EMS (Electronic Manufacturing Services) sector as a “sunrise industry” backed by the China+1 strategy and the Make in India initiative.
JPMorgan forecasts a 32% revenue CAGR for the EMS sector through FY30, driven by rising electronics demand, export recovery, and a shift in global supply chains. Syrma SGS is seen delivering a 31% CAGR in sales (FY25–28), with EBITDA margin expansion to 9% by FY28 due to strong traction in industrial and auto segments.
🔹 Top Picks: Syrma SGS, Dixon Technologies, Kaynes Technology all rated ‘Overweight’
🔹 Sector View: EMS revenue to grow 32% CAGR (FY25–30); mobile and export segments key drivers
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Stocks React to Bullish Brokerage Call
At 12:50 p.m., Syrma SGS was up 4.6%, Dixon Technologies gained 2%, and Kaynes Tech rose 2.7%, reflecting upbeat sentiment.
JPMorgan highlighted Dixon’s mobile outsourcing strength, projecting a 38% CAGR and ramp-up of the Vivo JV from Q4FY26. Kaynes was called the fastest-growing EMS stock, expected to post 46% CAGR with a $1 billion topline by FY28.
Amber Enterprises and Cyient DLM received ‘Neutral’ ratings, while Avalon Technologies was marked ‘Underweight’. Export-focused Syrma and Cyient DLM were seen benefiting from long-term global shifts.
🔹 Stocks to Watch: Syrma SGS, Dixon, Kaynes, Cyient DLM
🔹 Outlook: EPS upgrades likely; sector rerating depends on estimate revisions
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