Japanese brokerage Nomura has initiated a buy call on Kaynes Technology with a target price of Rs 8,478 per share, implying an upside potential of approximately 47 per cent from the current market price of Rs 5,770.
The brokerage is eyeing multiple growth catalysts for the electronic manufacturing services company, with a particular focus on broad-based growth that is expected to aid diversification across business segments.
Nomura noted that the company’s OSAT (Outsourced Semiconductor Assembly and Test) and PCB (Printed Circuit Board) initiatives remain on track, positioning Kaynes Technology favourably in the semiconductor value chain.
On the financial health front, the brokerage expects receivables to normalise by FY26, addressing one of the key concerns among investors. The company has also set a target to achieve positive operating cash flow in FY26, signalling improving capital efficiency.
The smart meter segment continues to be a significant growth driver for the company. Kaynes Technology has already executed Rs 450 crore worth of smart meter orders in H1 FY26 and is targeting Rs 800-900 crore in the full fiscal year. The company is backed by a robust order book of Rs 2,000 crore in the smart meter vertical alone.
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.