Shares of electronics manufacturing services (EMS) companies witnessed a broad-based rally today on March 17, with stocks like Amber Enterprises, Cyient DLM, Kaynes Technology, Syrma SGS, and Avalon Technologies trading higher by up to 10% after a bullish note from global brokerage JPMorgan Chase lifted sentiment across the sector.
Cyient DLM emerged as one of the top gainers, surging nearly 11% to ₹333.60 in early trade after the brokerage upgraded the stock to ‘Overweight’ from ‘Neutral’ and set a target price of ₹400. Amber Enterprises also saw strong buying interest, rising around 2.6% to ₹6,697.50, after being upgraded to ‘Overweight’ with a sharply higher target price of ₹9,000 from ₹7,650, indicating improved confidence in its growth trajectory.
Kaynes Technology traded higher by about 1.5% at ₹3,609.90, while Syrma SGS gained over 2% to ₹742.95. JPMorgan maintained its ‘Overweight’ rating on both stocks, assigning target prices of ₹6,000 and ₹1,050 respectively, highlighting them as key beneficiaries of the structural growth opportunity in the EMS space. Dixon Technologies, another major player in the segment, also retained an ‘Overweight’ rating with a target price of ₹13,000, reinforcing the brokerage’s positive stance on leading players in the ecosystem.
Avalon Technologies, meanwhile, rose over 4% to ₹922 despite JPMorgan maintaining a ‘Neutral’ rating on the stock with a target price of ₹1,000, suggesting selective optimism within the broader sector.
The brokerage noted that despite recent underperformance in EMS stocks, the long-term growth story remains intact, driven by increasing localisation, strong demand visibility, and a shift towards higher value-added manufacturing such as PCB assembly and component-level integration. JPMorgan expects companies in the sector to deliver robust revenue growth over the next few years, supported by favourable policy support and global supply chain realignments.
The rally across EMS stocks reflects renewed investor confidence following the brokerage’s upgrade and reiteration of bullish views on key companies, with markets responding positively to improved earnings visibility and attractive valuations after recent corrections.