JP Morgan Cuts Targets for Dixon, Kaynes; Still Sees Up to 60% Return

• JP Morgan cut target prices for Dixon Technologies and Kaynes Technology, both EMS sector companies, but maintained 'Overweight' ratings.
• Kaynes Technology's target price reduced by 20% to ₹6,100, still offering a potential 60% upside despite FY2026 revenue guidance cut due to 'Kavach' delays.
• Dixon Technologies' target price slashed by 30% to ₹13,700, indicating a 15% upside, with flat revenue growth expected due to high base effect and mobile demand issues.
• Kaynes expects 30% annual revenue growth from automotive/industrial and improved EBITDA margins (15.5%) from smart meters.
• Dixon anticipates margin improvement (3.9%) through cost control, despite mobile volume impact from rising memory costs.

Why It Matters: Despite target price cuts, JP Morgan maintains 'Overweight' on Dixon and Kaynes, projecting significant returns.