KAYNES - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials & Profitability

Profit Growth: Quarterly PAT dipped from ₹60.4 Cr to ₹54.3 Cr, but YoY revenue growth remains strong at 58.5%

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. EPS of ₹33.3 is decent, though not enough to justify the current valuation.

Return Metrics

ROE: 7.97% and ROCE: 11.9% — moderate, not exceptional for a high-growth tech firm.

Debt Profile: Debt-to-equity at 0.24 — healthy and manageable.

Dividend Yield: 0.00% — no payouts, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 225 Extremely high vs. industry PE of 37.5 — richly valued.

P/B Ratio ~17.5 Expensive relative to book value ₹413.

PEG Ratio 3.20 Indicates overvaluation relative to earnings growth.

🔍 Conclusion: Valuation is highly stretched. The market is pricing in aggressive future growth, but current fundamentals don’t fully support it.

🏭 Business Model & Competitive Edge

Core Operations: Kaynes Technology is a leading electronics manufacturing services (EMS) provider, offering end-to-end solutions including IoT, smart tech, and embedded systems.

Strategic Strengths

Strong positioning in industrial automation and specialty electronics.

Delivered 48.9% 1-year return with 10.7% profit margin

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DII holdings surged by 5.41%, reflecting institutional confidence.

Growth Outlook

Technical targets for 2025 range from ₹7,594 to ₹7,927, with stop-loss levels around ₹6,730

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2026 targets suggest potential upside to ₹10,116, implying ~41% growth

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📉 Technicals & Entry Zone

RSI: 75.0 — overbought zone, caution advised.

MACD: 297 — strong bullish momentum.

DMA Levels: Price well above both 50-DMA and 200-DMA — trend is strong but overheated.

📌 Suggested Entry Zone: ₹6,400–₹6,600 — near 50-DMA, offering better risk-reward.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong sector tailwinds and institutional backing support long-term potential.

Avoid Fresh Entry at Current Levels: Wait for a technical correction or RSI cooldown.

Monitor: Margin expansion, order book growth, and execution on IoT and automation contracts.

You can explore Kaynes Technology’s 2025–2035 price targets and technical outlook or review brokerage consensus and analyst reports for deeper insights. Let me know if you'd like a peer comparison with Syrma SGS or Dixon Technologies next.

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