Brokerages split on Kaynes Tech post-meet: Here's what investors should do

Nuvama maintains 'Hold' on Kaynes citing valuations, while Emkay highlights strong FY26 growth, a robust order book, and expansion across EMS, OSAT, PCB, and satellite projects.

Brokerages remain divided on Kaynes Technology after the company outlined its five-year growth and margin plans during a recent analyst meet. While Nuvama Institutional Equities has maintained a Hold rating, citing valuations that are yet to become attractive for entry, Emkay Institutional Equities highlighted strong FY26 revenue guidance, a robust ₹8,000 crore order book, and expansion across EMS, OSAT, PCB, and satellite initiatives but did not assign a rating.

Nuvama Institutional Equities: Hold | Target ₹6,700

Achal Lohade of Nuvama Institutional Equities has maintained a Hold rating on Kaynes Technology with a target price of ₹6,700, citing the need for more attractive valuations before entering the stock.

 

“The brokerage prefers to await a better price to enter the stock,” Lohade wrote.

 

Nuvama has tweaked FY26E–28E PAT estimates by 2–3 per cent and continues to value Kaynes at 45x FY29E EPS, discounted at 15 per cent. The firm highlighted the EMS order book of ₹8,000 crore as supportive of FY26 revenue guidance of ₹4,500 crore (including ₹100 crore from OSAT and ₹200 crore from Augusta).  ALSO READ | Nuvama upbeat on alco-bev space, bets on United Spirits and ABD; here's why

 

The brokerage also noted that inventory levels remain slightly elevated to support stronger Q3/Q4 performance, while payables are expected to normalize by March 2026. Nuvama observed that Kaynes trades at 64.4x FY27E EPS, reflecting the need for more favorable valuations before turning constructive.

Emkay Institutional Equities: Not Rated

Emkay Institutional Equities attended Kaynes Technology’s analyst meet, where management detailed its five-year growth blueprint. The brokerage highlighted FY26 revenue guidance of 60 per cent, underpinned by a strong ₹8,000 crore order book, and noted the company’s potential to achieve USD 1 billion (₹8,300 crore) in revenue (TTM basis) earlier than the FY28 target, with FY30 revenue projected at ₹16,600 crore (FY25–30 CAGR: 45 per cent).

 

“The company’s EBITDAM is expected to expand through a richer product mix, scarcity of manufacturers in low-volume high-tech segments, push into advanced PCBs (HDI/multi-layer/flex), backward integration into components, and rising ODM share,” Emkay analysts wrote.  ALSO READ | Value fashion outperforms as analysts highlight V-Mart as top retail pick 

Emkay also highlighted KTIL’s satellite ambitions. “The company aims to place a dummy satellite in orbit by May 2026 and launch the operational satellite by December 2026, with three core capabilities: satellite design, in-house ADS (Attitude Determination System), and a scalable Command & Control Centre for large drone fleets,” the brokerage noted.

 

The brokerage further detailed capex plans of ₹8,500 crore over FY26–29, targeting OSAT revenue of ₹100 crore/₹1,000 crore in FY26/FY27 and HDI PCB revenue of ₹500 crore in FY27. Exports are expected to rise to 20 per cent, with North American operations contributing 15 per cent of consolidated revenue by FY30. Operating cash flow is expected to turn positive by FY26-end, supported by monetization of ₹300 crore in receivables, with net working capital projected to improve to 70–80 days from 116 days as of H1FY26.