Jefferies has upgraded Kaynes Technology to ‘Buy’ from ‘Hold’, revising its target price to ₹5,400 from ₹6,950, reflecting a 15.6% upside from the current market price (CMP) of ₹4,670.
The brokerage highlighted that Kaynes has corrected sharply by 38% in the last month, presenting an attractive entry point. It remains one of the most backward-integrated Indian EMS players, with a core manufacturing operating margin of 14-15%, significantly higher than its peers.
Jefferies estimates that EPS CAGR for FY25-27 will exceed 50%, driven by a strong order book. However, as growth normalizes, it has cut its EPS estimates for FY25-27 by 11-15%.
Despite the correction, Jefferies believes that Kaynes Technology’s long-term fundamentals remain strong, supporting its positive stance on the stock.
Target Price: ₹5,400
Current Market Price (CMP): ₹4,670
Disclaimer: The above information is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
