⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KAYNES - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | KAYNES | Market Cap | 24,886 Cr. | Current Price | 3,714 ₹ | High / Low | 7,705 ₹ |
| Stock P/E | 101 | Book Value | 651 ₹ | Dividend Yield | 0.00 % | ROCE | 11.9 % |
| ROE | 7.97 % | Face Value | 10.0 ₹ | DMA 50 | 3,912 ₹ | DMA 200 | 4,899 ₹ |
| Chg in FII Hold | -1.84 % | Chg in DII Hold | -6.93 % | PAT Qtr | 67.6 Cr. | PAT Prev Qtr | 62.9 Cr. |
| RSI | 48.3 | MACD | -54.9 | Volume | 10,54,277 | Avg Vol 1Wk | 15,17,191 |
| Low price | 3,295 ₹ | High price | 7,705 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.08 |
| 52w Index | 9.49 % | Qtr Profit Var | 77.7 % | EPS | 36.8 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹62.9 Cr → ₹67.6 Cr), showing growth. EPS at ₹36.8 reflects moderate earnings strength.
- Margins: ROCE at 11.9% and ROE at 7.97% highlight below-average efficiency compared to peers.
- Debt: Debt-to-equity ratio of 0.08 indicates very low leverage and strong balance sheet health.
- Cash Flow: Operating performance is stable, though margins remain modest.
💹 Valuation Indicators
- P/E: 101, far above industry average (28.0), suggesting heavy premium valuation.
- P/B: 5.7 (₹3,714 / ₹651), reflecting high market expectations.
- PEG Ratio: 1.45, indicating growth is fairly priced but not cheap.
- Intrinsic Value: Current price ₹3,714 is above fair value; better entry closer to ₹3,300–3,500.
🏢 Business Model & Competitive Advantage
- Strong presence in electronics manufacturing services (EMS) with diversified offerings.
- High demand from industrial and technology sectors supports growth.
- Low debt enhances resilience, though profitability ratios remain modest.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹3,300–3,500 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to EMS growth, though valuation premium and modest return ratios warrant caution.
✅ Positive
- Sequential PAT growth (+7.5%).
- Debt-to-equity ratio of 0.08 ensures financial stability.
- Strong presence in EMS sector with diversified demand.
⚠️ Limitation
- ROE (7.97%) and ROCE (11.9%) are modest compared to industry leaders.
- High P/E (101) compared to industry average (28.0).
- PEG ratio (1.45) suggests growth is fairly priced, not undervalued.
- Stock trading below DMA 50 (₹3,912) and DMA 200 (₹4,899), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 1.84%, showing reduced foreign investor confidence.
- DII holdings decreased by 6.93%, reflecting lower domestic institutional support.
- Technical indicators (RSI 48.3, MACD -54.9) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹62.9 Cr to ₹67.6 Cr.
- Debt-free status enhances long-term stability.
- Strong demand outlook in EMS sector supports growth potential.
🏭 Industry
- Industry P/E at 28.0, much lower than company’s P/E, indicating premium valuation.
- Electronics manufacturing sector remains resilient with strong demand from industrial and technology clients.
🔎 Conclusion
- Kaynes demonstrates moderate fundamentals with strong sector positioning but modest profitability ratios.
- Valuation is heavily premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹3,300–3,500 is favorable for long-term investors.
- Overall, a fundamentally stable company with growth prospects, though short-term momentum weakness and high valuation warrant caution.