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

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.