Syrma SGS Technology, Kaynes, Dixon Tech shares gained up to 8% today; here's why

Syrma SGS Technology, Kaynes Technology India, and Dixon Technologies rose up to 8 per cent in Wednesday’s trade after foreign brokerage JPMorgan identified India’s electronic manufacturing services (EMS) sector as a sunrise industry. The brokerage expects the EMS space to deliver 32 per cent compound annual revenue growth over FY25–30, supported by increasing electronics content in products, the government's ‘Make in India’ initiative promoting import substitution, and a global supply chain shift toward India under the China+1 strategy.

Syrma SGS Technology climbed 7.79 per cent to hit a high of Rs 663.60. JPMorgan initiated coverage on Syrma with an 'Overweight' rating, citing growth acceleration and margin expansion. 

Dixon Technologies was trading 1.78 per cent higher at Rs 15,745.65.  For Dixon Technologies, JPMorgan sees mobile-led growth through FY27, with non-mobile segments contributing beyond that. 

In Kaynes' case, it forecasts the fastest revenue CAGR of 46 per cent over FY25–28, targeting $1 billion in revenue by FY28. The stock was up 2.9 per cent at Rs 6,185.50. 

The brokerage also initiated coverage on Amber Enterprises India and Cyient DLM with Neutral ratings, and assigned an Underweight rating to Avalon Technologies. Amber Enterprises was flat at Rs 7,514.40. Cyient DLM edged 0.3 per cent higher at Rs 494. Avalon Technologies Ltd added 1.33 per cent to Rs 862.10. 
   
JPMorgan highlighted exports as the next long-term growth driver, naming Syrma, Cyient DLM, and Avalon as key players. However, following a 3x rally over the past three years and current premium valuations, JPMorgan believes further upside will hinge on consensus earnings upgrades—identifying Syrma and Dixon as its top revision picks.

On Amber, JPMorgan expressed caution due to its shift from assembling air conditioners to manufacturing components, amid increasing brand-level insourcing. For Cyient DLM, it sees growth challenges in FY26 from a weak order book and the absence of revenues from Bharat Electronics. As for Avalon, its high export exposure (57 per cent of revenue) and the uncertain tariff environment are expected to pressure FY26 performance.

Meanewhile, Nuvama Institutional Equities suggested that EMS companies would continue to post a superlative performance with Q1FY26E revenue, Ebitda and PAT burgeoning 49 per cent, 49 per cent and 35 per cent YoY—Dixon and Kaynes likely turning in industry-leading growth.

"Cables & Wires players shall follow with their revenue and EBIT expanding 19 per cent YoY each, whereas Appliances are likely to post among the weakest quarters—courtesy a summer season washout (RAC, coolers and even fans category impacted) and general weakness in consumption persisting in Q1FY26," Nuvama said.