3 weeks ago

Motilal Oswal sees 30% upside as Kaynes Tech Q1 results

Motilal Oswal sees 30% upside as Kaynes Tech Q1 results
Kaynes Tech shares in focus after Q1 results; Motilal Oswal sees 30% upside · CNBC TV 18

Kaynes Tech is a company in India that builds electronic products for other businesses.

The company told everyone how much money it made in the last three months.

It earned 40% more money than it did at the same time last year.

People who watch companies had guessed how much it would earn, and Kaynes did even better than the guess.

Kaynes also has a big list of future orders worth ₹8,900 crore, so it knows many customers want its products.

Some costs, like energy and materials, went up, so Kaynes keeps a bit less profit per sale.

A money expert company called Motilal Oswal thinks Kaynes will keep growing well.

It believes the company's shares could rise by another 30%.

Kaynes is also working on new projects, like making a small satellite and working with India's space and defence agencies.

Overall, this was good news for the company and for people who own its shares.

Key facts

Q1 Revenue
₹946 crore, up 40% YoY
EBITDA
₹147.5 crore (poll: ₹130 crore)
EBITDA Margin
15.6% (down from 16.7%)
Gross Margin
34.4% (down from 41.1%)
Order Book
₹8,900 crore, up 20% YoY
Motilal Oswal Rating
Buy, price target ₹5,000 (30% upside)
Cash Conversion Cycle
163 days (up from 122)
EPS Estimate Cuts
FY27 cut 11%, FY28 cut 5%

Quotes

Motilal Oswal in Market Analysis

Analyst at brokerage firm Motilal Oswal

“Going forward, Kaynes' growth will be driven by continued scaling of its core EMS business, with growth across all verticals. OSAT and PCB are expected to emerge as key growth engines, with commercialization targeted from the third and fourth quarter of FY27,”
CNBC TV 18

Sources

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