Morgan Stanley has reiterated its overweight rating on Kaynes, raising the target price to ₹6,652 from ₹3,845, citing strong growth prospects in the company’s core business. The brokerage highlighted that Kaynes is on solid footing, driven by customer acquisitions and favorable sector tailwinds.
Key drivers of growth include capacity building in OSAT (Outsourced Semiconductor Assembly and Test) and PCBs (Printed Circuit Boards), which are expected to significantly add value to the company’s operations. Morgan Stanley projects an EPS CAGR of 53% for Kaynes’ core EMS (Electronics Manufacturing Services) business over FY24-27E.
Additionally, Kaynes’ core EMS revenue and EBITDA are forecasted to grow at 54% and 53%, respectively, over the FY24-FY27 period. The brokerage’s earnings revision is driven by a robust order book and new customer additions, which are expected to continue supporting the company’s upward momentum.
Morgan Stanley’s positive outlook reinforces Kaynes’ position in the sector, with capacity expansions and a strong client base expected to drive sustained growth.
