Synopsis:
JP Morgan initiated ‘Overweight’ coverage on Syrma, Dixon, and Kaynes, calling EMS a “sunrise sector”. With strong revenue growth forecasts and export optimism, it sees further upside despite already rich stock valuations.
JP Morgan has dubbed India’s electronic manufacturing services (EMS) industry a “sunrise sector,” expecting it to maintain strong growth momentum. The brokerage projects a robust 32 percent CAGR from FY25 to FY30, fueled by growing demand for electronics, the government’s Make-in-India push, and global companies looking to diversify supply chains under the China+1 strategy.
With EMS stocks already having tripled in value over the past three years and valuations now running high, JPMorgan noted that further gains may depend on earnings upgrades. The firm highlighted Syrma and Dixon as top picks for potential positive revisions.
Here are three EMS stocks that witnessed a sharp jump in the share prices after JP Morgan initiated “overweight” coverage:
Syrma SSG Technology Limited
With a market cap of Rs. 11,456.4 crores, the stock moved up by nearly 8 percent on BSE, to hit a new 52-week high at Rs. 663.6 on Wednesday. JP Morgan has initiated coverage on Syrma SGS Technology with an ‘Overweight’ rating, pointing to strong growth prospects and improving profit margins.
The brokerage expects Syrma to be the third-fastest growing company in its EMS coverage, forecasting a 31 percent revenue CAGR from FY25 to FY28. It also sees EBITDA margins rising by 70 basis points to 9 percent by FY28, supported by robust demand in the industrial and auto sectors, along with easing pressure in the lower-margin consumer electronics space.
JPMorgan also sees export growth picking up again from FY27—a factor it believes the market hasn’t fully priced in yet, as per present market expectations, potentially paving the way for better positive earnings.
In addition, Syrma SGS is reportedly planning to build India’s largest facility for manufacturing multi-layer Printed Circuit Board (PCB) and Copper Clad Laminate (CCL) in Andhra Pradesh. The project is said to be in partnership with South Korea’s Shinhyup Electronics, which will provide both technology and marketing support.
According to sources, discussions are in advanced stages, and the Andhra Pradesh state cabinet is expected to approve the proposal soon. Syrma may also apply for incentives under India’s production-linked incentive (PLI) scheme for electronics manufacturing. The facility is likely to be operational by 2026-27.
Dixon Technologies (India) Limited
With a market cap of Rs. 95,374 crores, the stock moved up by nearly 2.4 percent on BSE, to hit an intraday high at Rs. 15,835.45 on Wednesday. JP Morgan has assigned an ‘Overweight’ rating to Dixon Technologies, projecting a 38 percent revenue CAGR through FY25, with margins expected to remain steady.
According to the brokerage, growth will largely be driven by the mobile segment, supported by a growing order book from its key client and the ramp-up of its joint venture with Vivo, which is set to begin in Q4 FY26.
JPMorgan sees additional upside potential in mobile manufacturing, highlighting a sizable opportunity in the form of 90 million outsourced units and another 50 million currently manufactured in-house that may shift to outsourcing. This is in contrast to Dixon’s own goal of producing 60-65 million units by FY27.
Beyond mobile phones, Dixon is also well-positioned to benefit from rising demand in other categories like consumer electronics and wearables. Its broad product mix and ongoing capacity expansion are expected to drive sustained long-term growth.
Kaynes Technology India Limited
With a market capitalizations of Rs. 41,265.6 crores, the stock moved up by nearly 4 percent on BSE, to hit an intraday high at Rs. 6,237.5 during Wednesday’sa trading session.
JP Morgan has also initiated coverage on Kaynes Technology with an ‘overweight’ rating, expecting it to be the fastest-growing player among its peers. The brokerage projects a standout 46 percent revenue CAGR between FY25 and FY28, with Kaynes targeting $1 billion in revenue by FY28.
Written by Shivani Singh
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