The brokerage has maintained its “overweight” rating on Syrma SGS with a price target of ₹1,050, which implies an upside potential of 44% from Monday’s closing levels.
Additionally, JPMorgan has also gone on to upgrade Cyient DLM to “overweight” from its earlier rating of “neutral” but maintained its target of ₹400, which implies an upside potential of 33% from Monday’s close.The recommendation on Amber Enterprises has also been upgraded by JPMorgan to “overweight” and raised its price target to ₹9,000 from ₹7,650 earlier.
JPMorgan wrote in its note that the underperformance of EMS stocks has led to investors questioning whether the sector story is over. Shares of Dixon, Amber, Kaynes, have all corrected between 30% to 50% from its all-time high levels.However, the brokerage has rejected the thesis of the story being over, as it sees the sector upping value addition, evolving from the finished product assembly to component and PCB manufacturing.
Barring Dixon, JPMorgan expects every stock within this sector to deliver 20% revenue growth over financial year 2026-2028.
While valuations have eased after the recent underperformance for these companies, but they remain a risk for those companies that have missed expectations.
“We see Syrma as a cleaner way to play EMS given the absence of any cyclical verticals, low risk to financial year 2027-2028 EPS estimates and less dependence of any pending approvals,” JPMorgan wrote.
| Stock | Buy | Hold | Sell | Upside (%) |
| Dixon | 24 | 3 | 6 | 28 |
| Amber | 25 | 5 | 1 | 30 |
| Slide | 23 | 4 | 0 | 30 |
| Kaynes | 16 | 5 | 4 | 32 |
| Avalon | 9 | 4 | 4 | 17 |
Shares of Cyient DLM are trading 11% higher on Tuesday at ₹332.9, while those of Amber Enterprises are trading with gains of 2.7% at ₹6,699. Shares of Syrma SGS are trading 2.1% higher at ₹743, while those of Dixon Technologies are also trading with gains of 1.6%.
