Broker’s call: Kaynes Tech (Accumulate)

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Target: ₹3,100

CMP: ₹2,884.50

Kaynes Technology Q3 revenue surged 76 per cent y-o-y to ₹510 crore, 10 per cent higher than our estimates. Revenue was led by healthy B2B demand and strong order backlog. Revenue from the industrials segment spiked 217 per cent y-o-y to ₹270 crore on rising import substitution in the EV space.

Automotive revenue grew 28 per cent y-o-y to ₹140 crore and Railways revenue rose 58 per cent to ₹45.20 crore on healthy project pipeline. Revenue from the consumer segment (including IT & IoT and others) fell 55 per cent to ₹15.90 crore, medical declined 58 per cent to ₹11.50 crore, and aerospace, defence, nuclear & space by 47 per cent y-o-y to ₹3.60 crore. Management has received a large ticket order in aerospace and defence, the impact of which is to be visible from Q4-FY24.

We lower our FY24E EPS by 1 per cent and FY25E EPS by 23 per cent on higher other expenses due to operationalization of OSAT and printed circuit board (PCB). We raise our FY26 EPS by 21 per cent as OSAT kicks in.

We raise our TP by 19 per cent to ₹3,100 from ₹2,610 on 56x (from 50x) December 2025 P/E. We reiterate Accumulate as Kaynes is a preferred play on India’s industrial growth opportunity, import substitution, and a diversified business stream.