A leading electronic manufacturing services provider, renowned for its diverse portfolio in industrial electronics, faces market scrutiny despite posting strong Q3 results with notable revenue and profit growth. The spotlight turns to their revised downward revenue guidance for FY25, even as their orderbook shows robust expansion and improved operational efficiency.
Share Price Movement
The share price of Kaynes Technology India Limited hit a lower circuit of 20 percent to Rs. 4,214.45 per share on Tuesday, a decrease from its previous close of Rs. 5,268 per share. The market capitalisation now stands at approximately Rs. 26,996 crore as of January 28, 2025.
Revenue Outlook
The company has given revised FY25 revenue guidance, lowering it to Rs. 2,800 crore from the previously anticipated Rs. 3,000 crore.
Q3 Financial Highlights
Revenue grew 30% YoY to Rs 661 crore from Rs 509 crore. EBITDA increased 35% to Rs 94 crore from Rs 70 crore, with margin expanding 50 bps to 14.2%. PAT rose 47% to Rs 66.5 crore, with PAT margin improving 120 bps to 10.1%.
The orderbook expanded 59% YoY to Rs 6,047 crore from Rs 3,798 crore. Net working capital days improved by 10 days, reducing to 107 days from 117 days year-over-year.
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Management Commentary
“We continue to invest in high-potential & high-margin segments and expect these to help us sustain the growth momentum and make Kaynes a differentiated player in this segment. We are consistently adding new capabilities and new geographies and looking to expand our customer base, with specific focus on large customers and high growth segments,” said Ramesh Kunhikannan
Competitors
Kaynes Technology India Ltd. competes with key players like Syrma SGS Technology, Dynamatic Technologies, Cyient, Centum Electronics, Bharat Electronics, Amber Enterprises India, and PG Electroplast in the electronic equipment sector.
Kaynes Technology India has a P/E of 142.02, which is more than the industry P/E of 60.13.
Market Outlook
India’s power sector is rapidly evolving as the third-largest global electricity producer and consumer. With growing demand, renewable energy adoption, and increasing investments, the sector aims to achieve 500 GW of non-fossil fuel capacity by 2032. Government initiatives, like enhanced funding for green energy and the PM-Surya Ghar Yojana, focus on sustainability. The sector has attracted significant FDI and is set to draw Rs. 17 lakh crore in investments over the next 5-7 years, making it a key growth driver.
Written By Fazal Ul vahab C H
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