3 weeks ago
Motilal Oswal sees 30% upside as Kaynes Tech Q1 results
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.
Kaynes Tech reported Q1 revenue of ₹946 crore, up 40% year-on-year and above the CNBC-TV18 poll of ₹866 crore.
EBITDA rose to ₹147.5 crore from ₹113 crore, ahead of the ₹130 crore poll, though margins narrowed to 15.6% from 16.7%.
Order book grew 20% year-on-year to ₹8,900 crore, with book-to-trailing 12-month sales ratio steady at 2.3x.
Aerospace, outerspace & strategic electronics and medical segments each grew 181%, while railway rose 81%.
Motilal Oswal maintained a 'buy' rating with a ₹5,000 price target, implying 30% upside, and expects 41% revenue CAGR through FY28.
- Who
- Kaynes Technology India Ltd., an electronics manufacturing company, and brokerage firm Motilal Oswal
- What
- Announced June-quarter results with 40% revenue growth, while Motilal Oswal maintained a 'buy' rating with a ₹5,000 price target
- Where
- India
- When
- June-quarter results reported last Friday, with shares reacting on Monday, August 10
- Why
- Results were largely in-line to better-than-expected, and the robust order book supports expectations of continued growth momentum
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






