EMS stocks to 'Buy': Up to 40% upside | Kaynes Tech, Syrma SGS, Amber - Price targets, Q4 previews

The domestic Electronics Manufacturing Services (EMS) sector is likely to report a positive fourth quarter in FY26, supported by steady execution, despite broader economic headwinds. PL Capital has maintained an ‘Overweight’ rating on the sector, expecting a 26.6% year-on-year (YoY) revenue growth for the January-March period. 

"Revenue momentum intact, margins soft," the brokerage noted in its latest Q4 preview report. 

“We expect margins to contract by 50bps to 9.9% for the EMS universe, while AMBER is likely to witness a correction in margins due to a sharp surge in commodity costs and currency depreciation,” PL Capital said, noting that the combined profit after tax (PAT) is still projected to deliver a 26% YoY growth.
 

Rating & target prices for EMS stocks

Among the pack, Kaynes Technology India Ltd, PL Capital has a 'Buy' call on the stock, with a target price of Rs 5,444, which implies an upside of roughly 40% from its current market price of Rs 3,877. 

Amber Enterprises India Ltd: The brokerage maintains a 'Buy' rating with a target price of Rs 8,646. Amber is likely to post an 18.7% YoY revenue growth, though its consumer durables (CD) segment might only see single-digit expansion, the brokerage noted.

Syrma SGS Technology Ltd: With a 'Buy' tag and a target price of Rs 905, Syrma is likely to have a 76.5% YoY surge in PAT, PL Capital said, while for Avalon Technologies: PL Capital also has a 'Buy' with a target price of Rs 1,175.

Cyient DLM Ltd: The brokerage has an 'Accumulate' rating on the stock with a target price of Rs 327. PL Capital expects the company's PAT to decline by roughly 28.6% due to margin contraction.