Parag Thakkar warns: EMS stocks 'overrated,' avoid despite corrections

• The Electronics Manufacturing Services (EMS) sector, a former investor favorite, is now under significant pressure.
• Fund manager Parag Thakkar advises caution on EMS stocks due to persisting high valuations, despite corrections up to 40%.
• Thakkar highlighted concerns with PG Electroplast (promoter sale, guidance cut) and Kaynes Technology (balance sheet/cash flow issues).
• He views the EMS theme as "overrated," with stocks bought at high P/E multiples, even after substantial price falls.
• Thakkar maintains a cautious stance, stating he would not buy into the EMS sector even after recent declines.

Why It Matters: It advises investors to be cautious about overvalued EMS stocks.