{"id":"f-e550251d2f-781b4442-87bf-5070-8414-0359ae16b2c9","title":"Kaynes Technology shares rise 4% after CLSA upgrade despite target cut","description":"CLSA said that execution on growth in the EMS business, commissioning and ramp-up of new projects such as OSAT and PCB, and a reduction in working capital will be key triggers for a rerating of the stock.","timestamp":1770616154,"category":"business","headline":"Kaynes Technology shares rise 4% after CLSA upgrade despite target cut","modifiedHeadline":"Kaynes Tech climbs on CLSA upgrade","subCategories":["scid_0f705da1"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"53","fcSummary":"kaynes technology's stock rose over 4% after clsa upgraded it to 'outperform', despite lowering the price target to ₹4,200. the upgrade follows a recent stock correction, with execution of growth initiatives and working capital reduction seen as key triggers. the company revised its revenue guidance downwards, but maintains its long-term targets, anticipating cash flow positivity soon.","summary":"Kaynes Technology shares jumped 4% following a CLSA upgrade. Key factors include EMS growth, project ramp-up & working capital reduction.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-781b4442-87bf-5070-8414-0359ae16b2c9","sourceUrl":"https://www.cnbctv18.com/market/kaynes-technology-share-price-rises-after-clsa-upgrade-despite-target-cut-ws-l-19845231.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/j8Q0EGXbjFV0.webp","content":"Shares of Kaynes Technology (India) Ltd. were trading with gains of over 4% on Monday, February 9, after brokerage firm CLSA upgraded the stock.\n
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\n CLSA upgraded Kaynes Technology to 'Outperform', even as it cut its price target to ₹4,200 per share. The upgrade comes after a sharp correction in the stock over the past three months.\n\n
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\n The brokerage said that execution on growth in the EMS business, commissioning and ramp-up of new projects such as OSAT and PCB, and a reduction in working capital will be key triggers for a rerating of the stock.\n
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\n Kaynes Technology reported a miss on all key parameters in the December quarter, including revenues, margins and working capital, with the increase in order book being the only positive takeaway.\n
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\n The company cut its FY26 revenue guidance, in-line with expectations, but maintained its FY28 revenue guidance of $1 billion.\n\n
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\n In an interaction with CNBC-TV18, Jairam Sampath, CFO of Kaynes Technology, said the company has lowered its full-year revenue guidance to ₹4,100 crore from ₹4,400 crore earlier, while maintaining its full-year EBITDA margin guidance at 16%.\n
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\n Sampath added that the company is close to turning operating cash flow positive on a standalone basis and expects to turn cash flow positive on a consolidated basis by the end of the financial year.\n
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\n The company reported revenue of ₹804 crore for the December quarter, well below the management's guidance of ₹1,300 crore.\n\n
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\n While margins expanded on a year-on-year basis, the improvement was lower than street expectations. For the March quarter, the company expects revenue to rise to ₹1,700 crore.\n
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\n For the first nine months of the financial year, Kaynes Technology recorded a topline of ₹2,384 crore, achieving about 54% of its earlier full-year guidance of ₹4,400 crore.\n
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\n The company's order book rose 12% sequentially to ₹9,072 crore.\n
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\n Growth during the quarter was led by the automotive segment, which grew 44%, while the industrial and railway segments declined by 4% and 18%, respectively.\n\n
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\n Kaynes Technology is tracked by 26 analysts, of whom 17 have a 'Buy' rating, five recommend 'Hold', and four suggest 'Sell'. Consensus price targets imply a potential upside of nearly 31% from current levels.\n
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\n Shares of Kaynes Technology were last trading 3.18% higher at ₹3,816.40. The stock has declined 35% over the past six months.","readDurationInMinutes":"4","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["CLSA upgrades Kaynes Technology to 'Outperform'. Company cuts FY26 revenue guidance. Kaynes Technology expects positive cash flow."],"tags":["KaynesTechnology","StockMarket","CLSAUpgrade","OutperformRating","IndianStocks","EMSBusiness","OSAT","PCB","WorkingCapital","RevenueGuidance","EBITDAMargin","JairamSampath","CFO","FinancialResults","OrderBook","AutomotiveSector","IndustrialSector","RailwaySector","AnalystRatings","StockPerformance"],"redirectionEnabled":false,"consent":true}

Kaynes Technology shares rise 4% after CLSA upgrade despite target cut

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