In a newly released thematic report, JPMorgan has identified India’s Electronic Manufacturing Services (EMS) as a “sunrise sector”, forecasting a 32% revenue CAGR over FY25–30, underpinned by rising electronics content, the Make-in-India initiative, and global supply chain diversification.
JPMorgan has initiated coverage with ’Overweight’ ratings for Syrma, Dixon, and Kaynes, citing differentiated growth potential:
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Syrma: Called the “Dark Horse” with strong margin delivery and increasing traction in EMS exports.
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Dixon: Dubbed the “Mobile Champion,” with robust volume growth in the smartphone segment expected to sustain through FY27.
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Kaynes: The “Aggressor,” with one of the fastest projected revenue CAGRs (46% over FY25–28), and a long-term revenue ambition to reach $1 billion by FY28.
The brokerage has assigned ‘Neutral’ ratings on Amber and Cyient DLM, and an ‘Underweight’ on Avalon, citing mixed project pipelines, margin pressure, and high export dependency amid geopolitical tariffs.
Looking ahead, JPMorgan sees significant upside in EMS export emergence, with Syrma, Cyient DLM, and Avalon poised to benefit most. The brokerage believes consensus earnings estimates need upward revision to reflect structural growth and that multiple re-ratings are possible if projections hold.
