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Shares of Kaynes Technology (India) Ltd. were trading with gains of over 4% on Monday, February 9, after brokerage firm CLSA upgraded the stock.
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.
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.
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.
The company cut its FY26 revenue guidance, in-line with expectations, but maintained its FY28 revenue guidance of $1 billion.
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%.
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.
The company reported revenue of ₹804 crore for the December quarter, well below the management's guidance of ₹1,300 crore.
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.
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.
The company's order book rose 12% sequentially to ₹9,072 crore.
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.
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.
Shares of Kaynes Technology were last trading 3.18% higher at ₹3,816.40. The stock has declined 35% over the past six months.
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.
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.
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.
The company cut its FY26 revenue guidance, in-line with expectations, but maintained its FY28 revenue guidance of $1 billion.
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%.
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.
The company reported revenue of ₹804 crore for the December quarter, well below the management's guidance of ₹1,300 crore.
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.
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.
The company's order book rose 12% sequentially to ₹9,072 crore.
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.
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.
Shares of Kaynes Technology were last trading 3.18% higher at ₹3,816.40. The stock has declined 35% over the past six months.
