EMS stocks: Motilal Oswal’s 6 buy calls for FY28

EMS sector stays in focus as demand broadens

India’s electronics manufacturing services (EMS) sector continues to see strong investor attention, helped by improving order visibility, rising exports, and demand coming from multiple end-markets. Motilal Oswal Financial Services has highlighted this momentum across its EMS coverage universe and reiterated positive views on several listed players.

The brokerage’s constructive stance is anchored in government support, especially incentives linked to domestic electronics manufacturing, and the steady shift of companies towards higher-value work. Alongside assembly, many firms are expanding into components and sub-assemblies, which typically improves the share of value captured per device.

What the brokerage is projecting for FY25 to FY28

Motilal Oswal expects a strong growth trajectory for EMS companies it tracks, with an estimated 30% compound annual growth rate (CAGR) in aggregate revenue between FY25 and FY28. It has also referenced an expected revenue/EBITDA/adjusted PAT CAGR of 30%/36%/42% over FY25-28, linking the outlook to policy support and diversification into higher-margin verticals.

In a separate note cited in the provided text, Motilal Oswal also indicated that sector profit could rise up to 42% by FY28, and that revenue could grow up to 30% by FY28 on the back of domestic demand and export opportunities.

Near-term read-through: 4QFY26 growth expectations

Motilal Oswal’s report also points to a supportive near-term setup. For 4QFY26, the sector’s revenue is expected to rise by about 8%, according to the brokerage note referenced in the text.

Within this, performance is expected to vary by company. Syrma SGS is expected to show the fastest growth, with revenue estimated to rise about 62%. Kaynes Technologies is seen with around 58% growth, while Avalon Technologies is estimated at about 30%. Cyient DLM, in contrast, could see around a 10% decline in revenue, while performance for other companies is expected to be stable.

Dixon’s core business and why it matters

Dixon Technologies is described in the provided inputs as a diversified EMS platform. Its core strength is in mobile phones, while it also operates in telecom and IT hardware. The company makes hardware components and, especially in mobiles, has expertise that spans assembly through to component manufacturing.

Motilal Oswal has also flagged Dixon’s scaling plans through joint ventures (JVs) in mobile phones (Vivo, Longcheer), IT hardware, and consumer appliances (Eureka Forbes). The brokerage has previously cited Dixon’s market leadership positioning, backward integration, and ability to scale other segments.

Stock calls and target prices: what is on the list

In the table included in the provided text, Motilal Oswal’s coverage includes Amber Enterprises, Avalon Technologies, Cyient DLM, Dixon Technologies, and Kaynes Technologies, along with their current prices, target prices, and stated upside.

The same set of inputs also mentions Syrma SGS (current price ₹742, target ₹1,020) and Data Patterns (neutral rating, target ₹3,000 versus current price ₹2,621) in a separate section.

Another Motilal Oswal note cites different targets

A separate excerpt in the provided text lists a ‘Buy’ rating on Kaynes Technology (target ₹8,200), Avalon Technologies (target ₹1,330), Cyient DLM (target ₹550), Syrma SGS Technology (target ₹960), Dixon Technologies (target ₹22,500), and Amber Enterprises (target ₹8,400). It also mentions a ‘Neutral’ rating on Data Patterns (target ₹2,950).

Because the inputs include multiple Motilal Oswal references with different target prices for some of the same stocks, readers should note that targets can differ across brokerage notes and update cycles.

Kaynes: order book visibility and component push

The text highlights Kaynes’ operating performance in 2QFY26 and notes a robust order book as of Sep’25 at INR81b, which is ₹8,100 crore. It also references approvals under the electronic component manufacturing scheme (ECMS) for HDI, multi-layer PCB, camera module assembly, and laminates.

Separately, the note also mentions a Tamil Nadu advanced circuit board manufacturing project for Kaynes involving investment of ₹3,700 crore.

Policy tailwinds: PLI and the move up the value chain

Motilal Oswal’s positive stance explicitly links the EMS upcycle to government support through the production-linked incentive (PLI) scheme and to company efforts to diversify into higher-margin verticals. The text also points to a broader structural shift toward technology ownership and indigenous component manufacturing.

In practice, this shows up in capacity additions, deeper localization of components, and expansion into printed circuit boards (PCBs) and modules that reduce dependence on imports.

Key projections mentioned across the notes

Market impact: what investors are tracking

The inputs suggest that investor focus is likely to remain on order pipelines, export-led scaling, and the pace at which companies increase component content in what they manufacture. The cited growth expectations for 4QFY26 and FY25-28 put the spotlight on execution, including ramp-ups at new facilities and the ability to win long-duration programs.

For Dixon specifically, the text points to joint ventures and backward integration as key themes. Another excerpt adds that Motilal Oswal raised its price target on Dixon to ₹22,300 from ₹22,100 and saw up to 33% upside from a previous close of ₹16,726.30, while also citing smartphone volume market share of 19% in FY25 moving up to 40% by FY27-end and an ability to address 30-35% of bill of materials (BoM) in the next 1-2 years.

Conclusion

Motilal Oswal’s cited notes present a broadly bullish view on India’s EMS sector, backed by policy support, exports, and a shift towards higher value-add manufacturing. Near-term expectations for 4QFY26 and multi-year CAGR projections for FY25-28 keep attention on execution, order visibility, and localisation-led margin levers. The next set of quarterly updates and any follow-through on capacity additions and component programs are likely to be key checkpoints for these EMS stock calls.