Kaynes Tech shares may rally 45%, Jefferies says on strong growth despite high working capital concerns

Global brokerage firm Jefferies has reiterated its ‘Buy’ recommendation on Kaynes Technology India Ltd., with a price target of ₹7,780 per share.

Following a recent management interaction, Jefferies highlighted several key takeaways.

The CFO addressed the reasons behind the company’s stretched working capital and outlined mitigation steps underway.

Jefferies expects working capital to remain elevated at around 115 days in the March quarter, which amounts to about 35 to 40% of estimated FY26 sales.

On the operations front, Kaynes has now shipped its pilot OSAT order of 900 chips to client AOS. The company is aiming to ramp up to full-scale production of 1.5 million chips a day by the first quarter of FY27.

Kaynes has also secured ECMS approvals for high-density interconnect and multi-layer PCBs, camera modules and laminates, which strengthens its manufacturing capability.

Jefferies forecasts a strong growth trajectory, estimating a sales and EPS CAGR of 51% between FY25 and FY28.

Of the 27 analysts that have coverage on the stock, 13 have a "buy" rating, nine have a "hold" rating and four have a "sell" rating.

Shares of Kaynes Technology India are trading 1.17% higher on Tuesday at ₹5,421, though the stock remains down 30% on a year to date basis.