2 weeks ago

Emkay picks Syrma, Avalon in India's $850 billion datacentre boom

Emkay picks Syrma, Avalon in India's $850 billion datacentre boom
Kaynes Vs Syrma Vs Avalon: Which EMS stock wins India’s $850 billion data centre boom? · financialexpress.com

There are companies in India that build the electronic parts used in computers, trains, hospitals and giant computer rooms called data centres.

These companies are called EMS companies.

Three of these companies are Syrma SGS, Avalon and Kaynes.

A research company called Emkay studied all three and gave them report cards.

It told investors that Syrma SGS and Avalon are good companies to buy.

It told investors to be careful with Kaynes.

The reason is that computers for artificial intelligence are becoming very popular, and data centres around the world spend a lot of money on them.

Syrma SGS and Avalon are growing steadily in areas like servers, trains and power supply.

Kaynes might grow the fastest, but it is building very expensive new factories, which can be risky.

So Emkay thinks the two steady companies are the safer choice for now.

Key facts

Report
Emkay Research, dated August 11, 2026
Syrma SGS rating
Buy; target price Rs 2,050 (35% upside)
Avalon rating
Buy; target price Rs 2,400 (24.4% upside)
Kaynes rating
Reduce; target price Rs 3,300 (11.6% downside)
Global datacentre capex
$750-850 billion per year (2026-2029)
AI server rack price
$2-3 million; EMS margins of 3.5-8%
PCB capex pipeline
Rs 6,950 crore targeted for commercialisation by FY28
Avalon US revenue share
59% of revenue in Q1 FY27

Quotes

J. Sampath

Whole‑time Director and CFO, Kaynes Technology

“Launching our first India‑manufactured server product is an important step in our localization strategy. Working with Syrma SGS has enabled us to bring global server design and manufacturing excellence together, delivering high‑quality products manufactured in India for the Indian market.”
financialexpress.com
“There’s a railway product which got postponed. And being a new product, we don’t want to aggressively push this through.”
financialexpress.com

Sources

Related news