KAYNES - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a deep dive into Kaynes Technology India Ltd (KAYNES)

📊 Core Financials

Profitability & Growth

EPS of ₹45.8 is strong, supported by a 43% QoQ profit growth — a bullish signal.

ROE (11.0%) and ROCE (14.4%) are healthy, though not industry-leading.

PAT jumped from ₹66.5 Cr to ₹116 Cr — impressive momentum.

Debt & Liquidity

Debt-to-equity ratio of 0.32 — comfortably low, indicating prudent financial management.

No dividend yield — suggests reinvestment focus over shareholder payouts.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 127 Extremely high vs industry PE of 37.2 — signals overvaluation

P/B Ratio ~12.5 Based on Book Value ₹444 — rich valuation

PEG Ratio 1.38 Slightly elevated — growth is strong but not fully justifying premium

Intrinsic Value ❓ Likely below current price — valuation stretched

🧠 Business Model & Competitive Edge

Model: High-tech electronics manufacturing services (EMS) player with exposure to automotive, aerospace, and industrial segments.

Strengths

Strong order book (~₹7,400 Cr as of June 2025)

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Rapid revenue and margin expansion — EBITDA margin up to 16.8%

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Strategic positioning in sunrise sectors like IoT, EVs, and defense

Challenges

Valuation risk — P/E is pricing in aggressive future growth

FII holding declined (-0.46%) — some institutional caution

📉 Technical & Sentiment Indicators

RSI at 35.2 — nearing oversold zone, potential for rebound

MACD negative at -78.2 — bearish momentum

DMA50 and DMA200 above current price — short-term downtrend

DII holding surged (+5.41%) — strong domestic institutional confidence

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹5,300–₹5,450 — near support and RSI levels

Stop Loss: ₹5,150 (daily close basis)

Targets: ₹6,100 short-term, ₹6,700 medium-term

Long-Term Holding: Promising if growth sustains. Ideal for aggressive investors with a 3–5 year horizon. Monitor order book execution and margin trends.

Would you like a peer comparison with Syrma SGS or Dixon to see how Kaynes stacks up in the EMS space?

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economictimes.indiatimes.com

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