In the latest stock market development, Kaynes Technology India and Syrma SGS Technology have seen their shares rise following a favorable rating from renowned brokerage firm Morgan Stanley.
As of 10:37 am, Kaynes Technology India was trading at Rs 2,086 on the BSE, marking a 1.64 percent increase from the previous day’s close. Meanwhile, Syrma SGS Technology recorded a significant gain of 4.74 percent, trading at Rs 544.80.
Morgan Stanley has initiated an “overweight” rating for both of these electronics manufacturing services (EMS) companies, with a target price of Rs 2,440 per share for Kaynes Tech and Rs 671 per share for Syrma SGS.
The rationale behind Morgan Stanley’s positive outlook is grounded in the transformation of global supply chains, which has resulted in notable shifts within the technology sector. The brokerage firm also recognizes India’s rising potential in the electronic manufacturing landscape, forecasting an impressive 21 percent compound annual growth rate (CAGR) in revenue from FY22 to FY32, ultimately reaching $604 billion by FY32.
Kaynes Technology stands out as a prominent end-to-end electronics manufacturing company, specializing in Internet of Things (IoT) solutions. The company offers a comprehensive suite of services, encompassing conceptual design, process engineering, integrated manufacturing, and life-cycle support across various industries, including automotive, industrial, aerospace and defense, nuclear, medical, IoT, and more.
Meanwhile, headquartered in Chennai, Syrma SGS Technology Limited is an engineering and design firm actively engaged in electronics manufacturing services. The company provides integrated services and solutions to original equipment manufacturers, guiding them from the initial product concept stage to volume production through concept co-creation and product realization.
In conclusion, the “overweight” rating from Morgan Stanley and the optimistic growth forecasts underscore the promising future of Kaynes Technology India and Syrma SGS Technology in the ever-evolving electronics manufacturing sector.