On July 9, shares of Dixon Technologies, Syrma SGS Technology, and Kaynes Technology surged up to 8%. The reason? JPMorgan.
The global brokerage firm initiated coverage with an ‘overweight’ rating, calling India’s electronic manufacturing (EMS) sector a “sunrise” opportunity.
And the market responded fast.
What JPMorgan said and why it matters
JPMorgan believes India’s EMS industry is set for strong long-term growth. They see benefits coming from the China+1 strategy, which is pushing global companies to diversify their supply chains.
Add to that the government’s ‘Make in India’ push, and the result could be explosive.
They estimate a 32% revenue CAGR for the EMS sector between FY25 to FY30.
That’s no small number.
Syrma SGS: A top bet for exports and autos
JPMorgan sees Syrma SGS as a key player. It expects sales to grow at 31% CAGR from FY25 to FY28.
Why? Strong demand in industrial and automotive electronics.
Margins are also set to improve, moving from 8.3% to 9% by FY28.
JPMorgan says that exports could bounce back by FY27, something the market isn’t fully pricing in yet.
Big upside potential here.
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Dixon Technologies: Riding the mobile wave
For Dixon Tech, JPMorgan also gave an ‘overweight’ tag.
It expects a 38% revenue CAGR, driven by the booming mobile phone manufacturing business.
Dixon’s joint venture with Vivo will pick up from Q4 FY26.
With 60–65 million units targeted by FY27, Dixon could grab a major share of India’s outsourcing boom.
Kaynes Tech: The fastest-growing star
JPMorgan thinks Kaynes will grow the fastest among all.
They predict a 46% revenue CAGR through FY28, with a target of $1 billion in revenue by then.
Solid growth, sharp execution.
Other players: Mixed outlook
JPMorgan gave Amber Enterprises and Cyient DLM a ‘neutral’ rating, while Avalon Technologies got an ‘underweight’ tag.
Still, they see exports as a major structural theme, and companies like Syrma and Cyient could benefit over time.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
