JPMorgan considers India’s electronic manufacturing services (EMS) as the ‘sunrise sector.’ They believe that this sector may benefit from the ‘Make in India’ push. According to JPMorgan, EMS may continue its strong growth and forecast a 32% revenue growth on a compounded basis over FY25-FY30.
Rising electronics content, the ‘Make in India’ push to drive import substitution, and a realignment of global supply chains to India with a China+1 strategy are the key catalysts. They see outsourced semiconductor assembly and testing (OSAT) and PCB as emerging opportunities, while exports are seen as the next frontier.
Some of JPMorgan’s key picks in this segment include Dixon and Kaynes. They have initiated coverage on Syrma with Overweight and Neutral on Amber and Cyient DLM.
JPMorgan’s top pick in electronic manufacturing services
Here is now a detailed analysis of JPMorgan’s top picks and the rationale supporting the view-
JPMorgan on Dixon
JPMorgan has an ‘Overweight’ rating with a price target of Rs 17,700 per share. This implies about 12% upside from current levels for the Dixon share price. They expect 38% revenue growth annually between FY25 – FY28 on a compounded basis, supported by stable margins. According to JPMorgan, growth will be driven by Mobiles on the back of an increased order book from its anchor customer and Vivo JV ramp-up from Q4FY26.
The global brokerage house continues to expect mobile to have upside given a TAM of 90 million units (outsourced) and another potential 50 million units (in-house that can move to outsource) Vs Dixon’s target of 60-65 million units by FY27. This estimate also supports their strong bullish call.
JPMorgan on Kaynes Tech
Another stock that JPMorragn is positive on from the electronic manufacturing services segment is Kaynes Technology. They have an Overweight rating with a target of Rs 7,150 per share. This implies about 15% upside for the Kaynes Technology share price.
They believe that the company will achieve the expected fastest 46% revenue CAGR over FY25-FY28 in their coverage universe. JPMorgan expects meeting consensus expectations on revenue growth in the short-term could drive a re-rating.
JPMorgan on Syrma
JPMorgan initiated coverage with an Overweight rating. They have a price target of Rs 800 per share on the Syrma share price, implying around a 12% upside from current levels. The brokerage expects Syrma to see the third-fastest growth in their coverage, with a 31% revenue CAGR over FY25-FY28, and EBITDA margins rising by 70 bps to 9% by FY28. Strong demand in industrial and auto and receding headwinds in the low-margin consumer vertical.
JPMorgan on Amber, Cyient DLM
Two other stocks that JPMorgan has initiated coverage on include Amber and Cyient DLM. The rating is Neutral as of now. The brokerage is sceptical of Amber’s growth potential given the movement from AC assembly to manufacturing components due to insourcing by brands.
For Cyient DLM, they see challenges to growth in FY26 due to a soft order book and the absence of revenues from Bharat Electronics. Avalon: They believe higher export exposure (at 57% of revenues), which is facing uncertainty due to Trump tariff may keep FY26 growth under pressure.