Chola Securities expects Biocon to see further correction over the next year as its merger leads to earnings dilution and higher debt costs. Profit growth and returns have stayed weak, and recovery to double-digit growth may take time. In the EMS sector, stocks like PG Electroplast, Kaynes Technology, Dixon and Amber face slower business momentum, high valuations and rising competition. Chola Securities recommends avoiding the EMS space for now despite any short-term bounce.
