In today’s fast-paced world, electronic manufacturing companies are the backbone of technological progress. They produce the devices we use daily, from smartphones to home appliances. Their innovative technologies make communication, work, and entertainment more accessible. These companies drive economic growth by creating jobs and supporting industries.
Additionally, they foster technological advancements, improving efficiency in healthcare, education, and transportation. With continuous innovation, electronic manufacturers shape our connected world, simplifying tasks and enhancing convenience. As a result, they significantly impact our lives, making technology more reliable and affordable for everyone. Their importance continues to grow, powering the digital age and making everyday activities smoother and faster.
Share Price
The shares of Kaynes Technology India Ltd are currently trading at Rs. 5,025 up by 7.8% from its previous close of Rs. 4,661.35 as of January 29, 2025. The stock also touched an intraday high of Rs. 5,134 which corresponds to an up move of 10%.
Recent Updates
Nomura on Kaynes (22% Upside Potential)
Nomura has reiterated a Buy call on Kaynes with a target price of ₹6,146 per share, highlighting strong tailwinds in the EMS (Electronics Manufacturing Services) sector. Despite a below-estimate Q3 EBITDA, Nomura is optimistic about the company’s healthy order wins, which offer strong growth visibility. The company is targeting ₹28-29 billion in revenue while maintaining a 15%+ margin for FY25E. With a 36x FY27F EPS valuation, Nomura remains positive on Kaynes’ long-term prospects, citing OSAT and PCB catalysts.
Jefferies on Kaynes (8% Upside Potential)
Jefferies upgraded Kaynes to a Buy, although it lowered its target price to ₹5,400 per share from ₹6,950 due to a 38% stock correction over the past month. The firm is impressed by Kaynes’ core operating margin of 14-15%, significantly higher than its peers. With a strong 9MFY25 performance (+49% YoY sales, +74% YoY PAT) and a 60% YoY growth in its order book to ₹60 billion, Jefferies sees robust growth potential. The company’s FY25-27E EPS CAGR is projected at +50%, driven by its order book and positioning within the component ecosystem.
Q3 Results
The company reported strong Q3 FY25 performance, with a 47% increase in profit after tax (PAT) at ₹66.5 crore, up from ₹45.2 crore in Q3 FY24. Revenue surged 30% year-on-year (YoY), reaching ₹661.2 crore compared to ₹509.3 crore in the same quarter last year. EBITDA (excluding other income) saw a notable 35% YoY growth, rising to ₹94 crore from ₹69.9 crore in Q3 FY24.
The EBITDA margin improved by 50 basis points, reaching 14.2%, up from 13.7% in Q3 FY24. Additionally, the PAT margin expanded by 120 basis points, reaching 10.1% compared to 8.9% in the previous year. These strong results reflect the company’s operational efficiency and growth trajectory.
Reason for recent sell-off
The recent sell-off in the company’s stock can be attributed to execution delays during the December quarter, which led to an inability to complete ₹100 crore worth of orders in the industrials segment. While the management anticipates fulfilling most of these delayed orders in the current quarter, the missed targets raised concerns among investors. Additionally, despite the company’s long-term projections for FY26, including revenue of ₹4,500 crore and margins exceeding 15%, the short-term execution issues have dampened investor confidence, contributing to the stock’s recent decline.
Written By: Dipangshu Kundu
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