Synopsis:
Kaynes Technology India is in focus after multiple analysts estimated that the share will rise by xx percent.
The shares of this leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company are in focus after multiple brokerages like JP Morgan, Nomura, etc turned bullish on the stock. In this article, we will dive more into the details.
With a market capitalisation of Rs 38,454 crore, the shares of Kaynes Technology India Ltd made a day low of Rs 5,713.10 per share, down 1.4 percent from its previous day’s closing price of Rs 5,793.10 per share. Over the past three years, the stock has delivered a multibagger return of 669 percent, outperforming NIFTY 50’s return of 42 percent.
Analyst Comments
Leading brokerage house Nomura has maintained its “Buy” call on the stock and has assigned a target price of Rs 8,478 per share, signalling an upside of 46 percent from its previous day closing price of Rs 5,793.10.
Nomura cited that the company had presented, at its analyst meet, various growth catalysts largely powered by broad-based expansion and improved business diversification. It mentioned that Kaynes Tech is aiming for a positive operating cash flow in the current financial year. Additionally, Nomura stated that the company had already completed smart meter orders worth Rs 450 crore in H1 FY26 and is projecting Rs 800–900 crore in FY26, backed by a robust Rs 2,000 crore order book.
On the other hand, JP Morgan has an “Overweight” rating on the stock and has assigned a target price of Rs 7,550 per share, signalling an upside potential of 30 percent from its previous close.
According to JP Morgan, Kaynes Tech kept the FY26 revenue guidance at Rs 4,400–Rs 4,500 crore, and was very confident of reaching the $1 billion revenue target before FY28, which will be mainly led by OSAT and PCB ramp-up. The company is planning to onboard 10 OSAT clients, while the top clients will be utilising most of the capacity.
JP Morgan communicated that Kaynes intends to reduce receivables in H2 FY26 and set the target for working capital days at 70–80 for FY26, compared to 86 days in FY25. The Rs 1,400 crore QIP of last year was utilised for OSAT and PCB capex, whereas the Rs 1,600 crore QIP of this year is meant for the acquisition basket. No additional fundraising has been planned as the new OSAT and PCB units are anticipated to be self-sustaining.
Furthermore, the report emphasised the vertical-wise cumulative capex plan of Kaynes amounting to Rs 8,500 crore by FY27, which will be financed through equity, debt, subsidies, and internal accruals.
Prabhudas Lilladher has a “Buy” rating on the stock and has assigned a target price of Rs 7,565 per share, signalling an upside potential of 31 percent from its previous close.
Prabhudas Liladhar stated that its interaction with Kaynes Technology’s management indicates a healthy medium-to-long-term outlook across EMS, OSAT, and PCB. The company has reaffirmed its FY26 revenue guidance, pointed to improving margins and cash flows, and outlined a detailed capex roadmap across key verticals. Strong growth momentum is expected in Industrial, Automotive, Aerospace, and Electronics, while the Railways segment is likely to pick up again with Kavach-led opportunities.
On the other hand, Kotak Institutional Equities has a “Reduce” rating on the stock and has assigned a target price of Rs 6,180 per share, signalling an upside potential of just 7 percent from its previous close.
Kotak stated that it has reduced Kaynes Tech’s EPS estimates by 2-5 percent as the company’s expansion will be slower than expected, and fewer subsidies will be received. But the brokerage added that the management is still very optimistic about achieving the revenue target of Rs 4,500 crore, which is backed by a strong order book. Besides, Kotak pointed out that the company will free up working capital by Q4 and thus, operating cash flow will turn positive by the end of the year.
Q2 Highlights
Kaynes Technology India reported a core revenue of Rs 906 crore in Q2 FY26, a growth of 58 percent as compared to Rs 572 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 35 percent from Rs 673 crore.
Regarding its profitability, it reported a net profit of Rs 121 crore in Q2 FY26, a staggering growth of 102 percent as compared to Rs 60 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it recorded a growth of 61 percent from Rs 75 crore. As of Q2 FY26, the company has a robust order book of Rs 8,099.4 crore.
The stock delivered a poor ROE and ROCE of 10.74 percent and 14.28 percent respectively, and is currently trading at a very high P/E of 103x as compared to its industry average of 34x.
Kaynes Technology India is a leading end-to-end electronics manufacturing and IoT solutions provider, serving industries like automotive, aerospace, healthcare, and industrial automation. With strong design, manufacturing, and R&D capabilities, it focuses on innovation, global expansion, and advanced technologies such as OSAT (Outsourced Semiconductor Assembly and Test), smart devices, and embedded systems to drive sustainable growth.
Kaynes Tech estimates that its OSAT business to be the primary growth source of the company with a top-line opportunity of Rs 1,000 crore by FY27 and states that 60 percent of the OSAT capacity is already reserved for clients. Additionally, the company has mentioned that the margins in the OSAT business will be far higher than those in the existing business of the company, whereas the overall EBITDA margin is anticipated to be around 16 percent in FY26.
Written by Satyajeet Mukherjee
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