Kotak Institutional Equities has maintained a reduce call on Kaynes Technology with a target price of Rs 6,180 per share, implying a limited upside potential of approximately 7 per cent from the current market price of Rs 5,770.
The brokerage noted that the company’s management remains confident of achieving its revenue guidance of Rs 4,500 crore for FY26 despite posting a weak performance in H1 FY26.
On the working capital front, Kaynes Technology believes that the ongoing issues will be resolved by Q4 FY26, with the company targeting positive operating cash flow generation by year-end.
The company has also outlined an ambitious capital expenditure plan, stating it will spend Rs 8,500 crore over FY26-29 across its OSAT (Outsourced Semiconductor Assembly and Test), PCB (Printed Circuit Board) and EMS (Electronic Manufacturing Services) verticals.
However, Kotak has trimmed its EPS estimates by 2-5 per cent, reflecting the revised capex timeline and lower-than-expected subsidy payouts. The brokerage’s cautious stance stems from execution concerns around the large-scale expansion plans and the near-term cash flow pressures.
Notably, the Kotak rating contrasts with Nomura’s bullish view on the stock. The Japanese brokerage earlier initiated a buy call on Kaynes Technology with a target price of Rs 8,478 per share, betting on growth catalysts including smart meters and the OSAT opportunity.
Shares of Kaynes Technology closed at Rs 5,770 on the exchanges.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to market risks. Readers are advised to consult their financial advisors before making any investment decisions. The views expressed by the brokerage are their own and do not represent the opinions of this publication.
