Kaynes Tech shares gain as analysts see up to 47% upside on stock — Should you buy?

Shares of Kaynes Technology India Ltd. gained 3% on Wednesday, November 26, as brokerages remain largely positive on the stock, post its analyst meet.

Analysts at JPMorgan and Nomura see an upside of 31% and 47% respectively on the stock, while Kotak Institutional Equities has a "reduce" rating on the stock, with their price target projecting an upside potential of only 7%.

Nomura

The brokerage has a "buy" rating on Kaynes Tech with a price target of ₹8,478 apiece, implying a potential upside of nearly 47% from its previous close of ₹5,777.5 apiece.

The brokerage said that the company, during its analyst meet said that it is eyeing growth catalysts by focusing on broad-based growth to aid diversification.

Kaynes Tech is targeting positive operating cash flow in the ongoing financial year, according to Nomura's note.

The company also executed ₹450 crore worth of smart meter orders in the first half of this fiscal and it is targeting revenue between ₹800 crore to ₹900 crore in the entire financial year 2026 with a ₹2,000 crore order book, Nomura said.

JPMorgan

JPMorgan has an "overweight" rating on the stock with a price target of ₹7,550 per share, implying a potential upside of 30.7% from its previous closing price.

The brokerage also listed the company's analyst meet takeaways:

• Kaynes Tech has a FY26 revenue guidance of ₹4,400-₹4,500 crore compared to its previous guidance of ₹4,500 crore.


• It believes it can achieve its $1 billion revenue target earlier than expected in financial year 2028, due to ramp up of the OSAT and PCB business.


• Within OSAT, the company's plan is to have 10 clients, with top three to four clients utilising 60% of the capacity and the remaining with the 40% capacity.


• Kaynes Tech plans to bring down its receivables in the second half of FY26 and is targeting net working capital days of 70 to 80 for FY26 compared to 86 days in FY25.


• The ₹1,400 crore raised through qualified institutional placement (QIP) last year was used for OSAT and PCB capex, while this year's ₹1,600 crore QIP is earmarked for mergers and acquisitions.


• A further fund raise is not required as the company wants new ventures OSAT and PCB to become self-sufficient after the first year of operations.


• Kaynes Tech is targeting cumulative capex of ₹8,500 crore by FY27 across OSAT (₹3,300 crore), PCB (₹1,400 crore), EMS (₹500 crore), HDI and CCL (₹3,000 crore) and camera modules (₹300 crore). It will be funded by equity of ₹1,800 crore, debt of ₹2,000 crore, subsidies ₹3,500 crore and internal accruals of ₹1,200 crore.

Kotak Institutional Equities

The brokerage has a "reduce rating on the stock with a price target of ₹6,180 per share.

Kotak cut its earnings per share estimates for Kaynes Tech by 2% to 5%, reflecting a revised capex timeline and lower-than-expected subsidy payout.

Kaynes Tech's management remains confident of achieving its revenue guidance of ₹4,500 crore, despite a weak first half of FY26, on the back of a strong order book.

The ongoing working capital issues will be resolved by the fourth quarter of this fiscal and the company will generate positive operating cash by the year-end, which is crucial, according to Kotak's note.

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 Tech gained 3.2% to hit an intraday high of ₹5,962 apiece. The stock has declined 23% this year, so far.

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