Kaynes Technology shares soar over 15% in 2 days. Should you invest now?
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After the company's Q1 results, here is what brokerage firms said:
Motilal Oswal: Buy | Target Price: Rs 7,300
Shares of Kaynes Technology India surged 15.5% over two trading sessions to hit a high of Rs 6,405 on the BSE, following the release of its financial results for the first quarter of FY26. The company reported a 47% year-on-year (YoY) increase in consolidated net profit, which rose to Rs 74.6 crore in Q1FY26 from Rs 50.8 crore in the same period last year.Revenue from operations for the quarter stood at Rs 673.5 crore, reflecting a 34% YoY growth compared to Rs 504 crore reported in Q1FY25. EBITDA (excluding other income) rose by 69% to Rs 113 crore, up from Rs 66.9 crore in the corresponding quarter of the previous fiscal.The company's EBITDA margin improved to 16.8%, representing an expansion of 350 basis points from 13.3% in Q1FY25.PAT margin for the quarter increased to 11.1%, up 100 basis points from 10.1% in the year-ago quarter. The company's order book stood at Rs 7,401.1 crore as of June 30, 2025, compared to Rs 5,038.6 crore as of June 30, 2024.Net worth rose to Rs 4,502.8 crore as of June 30, 2025, from Rs 2,535.2 crore a year earlier.Motilal Oswal has a Buy rating on the stock with a target price of Rs 7,300, based on 55x FY27E EPS.The brokerage noted that Kaynes Technology delivered a robust all-round performance in Q1FY26. With a strong order book of Rs 7,400 crore as of June 2025, the company is expected to maintain its revenue growth momentum. Motilal Oswal further stated that Kaynes is well-positioned to sustain growth and profitability, supported by improving operating leverage, a favorable order mix, and continued investments in high-tech verticals. It estimates a revenue/EBITDA/adjusted PAT CAGR of 58%/65%/74%, respectively, over FY25–FY27.HDFC Securities has a 'Reduce' rating on the stock with a target price of Rs 6,310, based on a valuation of 60x FY27E EPS.The brokerage noted that Kaynes Technology's revenue grew 34% YoY to Rs 6.74 billion, led by a 43% growth in the industrial segment, while the automotive, railways, IoT/IT, and medical segments recorded growth of 24%, 17%, 34%, and 34% YoY, respectively. Gross margin expanded 1,400 basis points to 41.3%, and EBITDA margin improved 350 basis points YoY to 16.8%, despite higher employee costs and other expenses.This resulted in a 69% YoY rise in EBITDA, and adjusted PAT (APAT) growth of 47% YoY. The company's order book stood at Rs 74 billion, up 47% YoY and 12% QoQ, or 2.7x FY25 revenue. Management has projected over 60% YoY revenue growth and 16–17% EBITDA margins for FY26.The brokerage also noted that the Sanand OSAT and Chennai HDP PCB facilities are on track for commissioning by Q3FY26 and Q4FY26, respectively, with a total capex plan of Rs 34 billion and Rs 14 billion by FY28.
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