Kaynes Technologies shares soar 40% in three days after Q4 results exceed Street expectations. Is it time to buy or sell
Kaynes Technologies' shares have surged over 40% in the past three trading sessions on the BSE following the company's robust performance in the January-March quarter. Today, the stock saw a further spike of 12%, reaching a 52-week high of Rs 3,638.4. In Q4 FY24, Kaynes Tech reported a significant increase in consolidated net profit, soaring by 96.8% year-on-year (YoY) to Rs 813 crore.
rallied over 40% in the last three trading sessions on BSE after the firm reported an upbeat January-March quarter . Meanwhile, in today's trade, the has surged 12% to hit a 52-week high of Rs 3,638.4.In Q4 FY24, 's consolidated net profit jumped 96.8% year-on-year (YoY) to Rs 813 crore, while from operations increased 74.8% YoY to Rs 637.3 crore. The was led by strong demand across all verticals, especially industrial & EV, aerospace, outer-space, and strategic electronics and railways segments.
The company's grew 60.5% YoY to Rs 952 crore in Q4FY24, but the EBITDA margin contracted by 134 basis points (bps) to 15%. Its stood at Rs 4,115 crore in FY24 as against Rs 2,648 crore in FY23.
Should you buy, sell, or hold Kaynes Technologies' stock? Here's what say:
maintained its 'Buy' rating on the stock with a target price of Rs 4,060 (earlier: Rs 3,410).
"We expect Kaynes to see strong growth mainly due to: a strong product mix and focus on adding high margin segment, development of component/chips ecosystem in India leading to improving supply chains, on-boarding new value-added customers, strong order book visibility, backward integration (bare PCB and OSAT), and exploring exports opportunities in aerospace and railway segments," it said.
Motilal Oswal retained its 'Buy' rating on the stock with a target price of Rs 3,680.
Kaynes is a prominent end-to-end and IoT-enabled integrated electronics manufacturer, with strong order book growth (85% CAGR over FY20-24) and a higher share of Box Build (~42% in FY24) and PCBA (~55%).
We estimate a CAGR of 49%/57%/60% in revenue/EBITDA/Adj. PAT over FY24- FY26, driven by a healthy order book growth trajectory and a better margin profile (increasing mix of high value order).
Factoring in the robust 4Q performance and higher guidance, we increase our EPS estimates for FY25/FY26 by ~22%/28%.
Kotak Institutional Equities retained its 'Add' rating on the stock with a revised target price of Rs 3,500 (earlier: Rs 2,850).
Kaynes’ results came in ahead of expectation driven by strong topline growth, steady margins and higher other income. Further, Kaynes expects robust 60% topline growth in FY2025 and 100 bps EBITDA margin expansion, both of which came in ahead of our expectations.
We also lower our FY2025 depreciation estimates driven by some shift of OSAT capex into FY2026.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Source: Stocks-Markets-Economic Times
