Dixon, Kaynes, Amber, Avalon, Syrma SGS, Cyient DLM, Data Patterns: Share price targets
MOFSL retained 'Buy' rating on Kaynes Technology Ltd, Avalon Technologies Ltd, Cyient DLM, Syrma SGS Technology, Dixon Technologies (India) Ltd, and Amber Enterprises.
- Jun 16, 2026,
- Updated Jun 16, 2026 1:14 PM IST
MOFSL in a fresh note on Electronics Manufacturing Services (EMS) said the sector continues to benefit from strong order inflows across high-margin segments such as defence, aerospace, automotive, telecom, and clean energy, with aggregate order books growing 25 per cent YoY in FY26 to Rs 20,500 crore.
While EMS companies faced cost pressures from higher prices of memory, commodities, labour, and logistics, the impact has largely been mitigated through pass-through mechanisms and operational efficiencies, MOFSL said.
The domestic brokerage retained its 'Buy' ratings on Kaynes Technology India Ltd, Avalon Technologies Ltd, Cyient DLM, Syrma SGS Technology, Dixon Technologies (India) Ltd, and Amber Enterprises India Ltd. MOFSL suggested a 'Neutral' rating on Data Patterns.
MOFSL estimated a 31 per cent compounded annual growth rate (CAGR) for its EMS coverage companies over FY26-28, aided by robust order flows, healthy demand, capacity additions, ramp-up of existing and new plants, and the development of new products across key industry verticals.
MOFSL said capacity expansions are underway across leading memory manufacturers. But surging demand from AI infrastructure, agentic AI applications, and server deployments should outstrip incremental supply additions, resulting in sustained supply tightness and supportive memory pricing over the next several years. Consequently, global demand for memory chips is expected to be 1.5 times higher than supply. The impact on EMS companies appears to be manageable given their limited memory exposure and/or ability to pass on higher costs to customers, MOFSL said.
The sector typically benefits from contractual pass-through arrangements and cost-plus pricing structures.
"While there may be short-term timing mismatches that create temporary margin pressure, EMS players mitigate these headwinds through procurement efficiencies, scale-led supplier negotiations, operational improvements, and supply-chain optimization," MOFSL said.
Strong and diversified order inflows across key sectors position EMS companies well for stable growth in FY27, with robust execution visibility, MOFSL added.
FAQs
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What is driving growth in India’s EMS sector according to MOFSL?
MOFSL said the EMS sector is seeing strong growth due to robust order inflows from high-margin segments such as defence, aerospace, automotive, telecom, and clean energy. Aggregate order books are expected to grow 25 per cent YoY in FY26 to Rs 20,500 crore.
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Which EMS stocks has MOFSL maintained a Buy rating on?
MOFSL has retained its Buy rating on Kaynes Technology, Avalon Technologies, Cyient DLM, Syrma SGS Technology, Dixon Technologies, and Amber Enterprises. It has assigned a Neutral rating to Data Patterns.
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What growth outlook has MOFSL projected for EMS companies?
MOFSL has estimated a 31 per cent CAGR for its EMS coverage companies over FY26-28. This is expected to be supported by strong order flows, healthy demand, capacity additions, plant ramp-ups, and new product development across key verticals.
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How are rising memory and input costs affecting EMS companies?
EMS companies have faced pressure from higher memory, commodity, labour, and logistics costs. However, MOFSL believes the impact is manageable because many players have limited memory exposure and can pass on higher costs through contractual pass-through and cost-plus pricing structures.
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Why does MOFSL remain positive on the EMS sector for FY27?
MOFSL remains positive because EMS companies have strong and diversified order inflows, stable execution visibility, and the ability to manage short-term margin pressure through procurement efficiencies, supplier negotiations, operational improvements, and supply-chain optimisation.
MOFSL in a fresh note on Electronics Manufacturing Services (EMS) said the sector continues to benefit from strong order inflows across high-margin segments such as defence, aerospace, automotive, telecom, and clean energy, with aggregate order books growing 25 per cent YoY in FY26 to Rs 20,500 crore.
While EMS companies faced cost pressures from higher prices of memory, commodities, labour, and logistics, the impact has largely been mitigated through pass-through mechanisms and operational efficiencies, MOFSL said.
The domestic brokerage retained its 'Buy' ratings on Kaynes Technology India Ltd, Avalon Technologies Ltd, Cyient DLM, Syrma SGS Technology, Dixon Technologies (India) Ltd, and Amber Enterprises India Ltd. MOFSL suggested a 'Neutral' rating on Data Patterns.
MOFSL estimated a 31 per cent compounded annual growth rate (CAGR) for its EMS coverage companies over FY26-28, aided by robust order flows, healthy demand, capacity additions, ramp-up of existing and new plants, and the development of new products across key industry verticals.
MOFSL said capacity expansions are underway across leading memory manufacturers. But surging demand from AI infrastructure, agentic AI applications, and server deployments should outstrip incremental supply additions, resulting in sustained supply tightness and supportive memory pricing over the next several years. Consequently, global demand for memory chips is expected to be 1.5 times higher than supply. The impact on EMS companies appears to be manageable given their limited memory exposure and/or ability to pass on higher costs to customers, MOFSL said.
The sector typically benefits from contractual pass-through arrangements and cost-plus pricing structures.
"While there may be short-term timing mismatches that create temporary margin pressure, EMS players mitigate these headwinds through procurement efficiencies, scale-led supplier negotiations, operational improvements, and supply-chain optimization," MOFSL said.
Strong and diversified order inflows across key sectors position EMS companies well for stable growth in FY27, with robust execution visibility, MOFSL added.