Archive · 8 Sep 2026
MOFSL Favors Indian EMS Stocks as Growth and Margins Improve
MOFSL is a brokerage firm that studied several Indian electronics manufacturing companies.
It believes many of these companies could grow strongly in the coming years.
The firm recommended buying shares of Kaynes Technology, Avalon Technologies, Cyient DLM, Syrma SGS, Dixon Technologies and Amber Enterprises.
It gave Data Patterns India a Neutral rating instead.
MOFSL expects supply problems to improve as more components become available.
It also expects companies to use stored components and collect customer payments more normally.
Better business efficiency and a stronger mix of automotive, industrial and defense products could improve profits.
The brokerage estimates that revenue for the group could grow 32% each year from FY26 to FY28.
It expects EBITDA, a measure of operating profit, to grow 37% annually during the same period.
MOFSL maintained a Buy rating on Kaynes Technology with a Rs 5,000 target price.
The brokerage recommended buying Avalon, Cyient DLM, Syrma SGS, Dixon Technologies and Amber Enterprises.
MOFSL assigned Data Patterns India a Neutral rating with a Rs 4,000 target price.
Improved component availability, inventory conversion and normalized collections are expected to ease working-capital pressure.
EMS-sector revenue may grow at a 32% CAGR and EBITDA at a 37% CAGR over FY26-28, according to MOFSL.
- Who
- MOFSL and the Indian electronics manufacturing services companies covered in its report.
- What
- MOFSL issued Buy recommendations and target prices for six EMS stocks, while maintaining a Neutral view on Data Patterns India.
- When
- The outlook covers FY26-FY28; the article does not specify the report date.
- Where
- India.
- Why
- MOFSL expects stronger order flows, capacity additions, product development, improved component availability and better operating leverage to support growth and margins.
- Kaynes Technology rating
- Buy; target price Rs 5,000.
- Avalon Technologies rating
- Buy; target price Rs 2,740.
- Cyient DLM rating
- Buy; target price Rs 1,030.
- Syrma SGS Technology rating
- Buy; target price Rs 2,000.
- Dixon Technologies rating
- Buy; target price Rs 16,100.
- Amber Enterprises rating
- Buy; target price Rs 8,250.
- Data Patterns India rating
- Neutral; target price Rs 4,000.