Analysts remain divided on Kaynes Technology’s future prospects following a mixed quarterly report, with bullish targets citing growth potential and others raising concerns over cash flow and execution risks.
Kaynes Technology shares have become a battleground for analysts after the electronics manufacturing services company’s latest quarterly update, with targets ranging from cautious trims to fresh highs. Motilal Oswal Financial Services has the most bullish call among the brokerages cited, setting a target of ₹5,000 and arguing that the company’s order book and expansion plans could support strong growth, while several others have cut back expectations after reassessing profitability, working capital and execution risk.
The split reflects a mixed reading of the June quarter. Business Standard reported that Kaynes posted revenue of ₹670 crore, up 34% from a year earlier, while EBITDA rose 69% to ₹110 crore and margins improved to 16.8%. That strength, however, was offset in some analysts’ eyes by weaker earnings quality and a more demanding balance-sheet profile. Nuvama said profit fell 24% year on year, missing its estimate, and pointed to higher tax costs and lower other income, while also flagging a sharp rise in working capital and net debt.
Concerns over cash conversion have become a central theme. The Financial Express reported that investors were unsettled by a long receivables cycle in the smart meter business, with some brokerages warning that the strain could weigh on near-term growth and valuation. JPMorgan, meanwhile, has kept an overweight stance but has acknowledged stretched working capital and receivables, saying the stock had already fallen below its bear-case scenario. Nomura, according to Business Standard, also retained a buy rating but cut its target sharply, arguing that a lower multiple was justified by execution challenges and the need to realign growth assumptions.
Even so, several analysts still see Kaynes as a structural growth story rather than a short-term trading problem. Motilal Oswal said the company’s order book stood at ₹8,900 crore, up 20%, and expects core electronics manufacturing to keep expanding, with OSAT and PCB businesses slated to begin contributing from the second half of FY27. It also sees diversification into space and defence electronics broadening the company’s base. Against that backdrop, the latest targets now span from ₹3,500 at the low end to ₹5,000 at the top, underscoring both the optimism around Kaynes’ long-term pipeline and the unease over how quickly that promise can be converted into cash.
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