Kaynes Technology hits 3-month low; stock tanks 28% from October high

Kaynes Technology India outlook: Analysts expect margins to remain capped in the near term till the operations from new ventures of OSAT and PCB manufacturing get stabilised.

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Kaynes Technology India share price today

 

Shares of Kaynes Technology India hit a three-month low of ₹5,551.20, as they slipped 4 per cent on the BSE in Thursday’s intra-day trade on growth concerns.

 

The stock price of the industrial products company was quoting at its lowest level since July 25, 2025. It has tanked 28 per cent from its previous month high of ₹7,705 touched on October 7, 2025. The stock had hit a 52-week high of ₹7,824.95 on January 1, 2025 and a 52-week low of ₹3,835 on February 11, 2025.

 

Company overview, outlook

 

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India, having capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) services. The company provides Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, EVs, Aerospace, Outer-space, Strategic electronics, Medical, Railways, Internet of Things (IoT), Information Technology (IT) and other segments.

 

The company’s order book stood at ₹8,099 crore as of September 30, 2025, providing a strong revenue visibility for H2FY26 and beyond, giving confidence to sustain the growth momentum, the management said.

 

Globally, the PCB market is projected to cross $100 billion by 2030, and India's domestic market alone is expected to grow at a 20 per cent compound annual growth rate (CAGR), driven by demand from EVs, industrial automation, defence and telecom sector. Within this landscape, Kaynes' upcoming multilayer HDI PCB facility in Chennai will position the company to capture a meaningful share of its growth.

 

BNP Paribas India retains ‘Neutral’ rating on Kaynes Technology

 

Kaynes has been at the forefront of underlying growth in the B2B electronics sector, having reported revenue/PAT CAGR of 40 per cent/77 per cent over FY19-25. Key positive attributes that work in Kaynes' favour include higher margins relative to peers due to its focus on high value-added products; strong order book and increasing average order value (AOV); diversified clientele and long-standing relationships; and ongoing expansion to cater to increasing demand.

 

While analysts at BNP Paribas expect EMS growth momentum to continue, they also expect margins to remain capped in the near term till the operations from new ventures of OSAT and PCB manufacturing get stabilised, along with a likely pressure on the return profile, gross asset turns and unlikely positive FCF generation. The brokerage firm believes there should be a valuation discount to B2C peers on Kaynes’ lower OCF generation, higher working capital (WC) intensity, funding gap and execution risks for new ventures.

 

Key downsides to the analyst's view include any disruption in the global supply chain; delay in government subsidies, commissioning of new projects and change in government's policy stance; rising competition from OEMs/peers for ESDM impacting the margin profile; and further deterioration in the working capital.  ===============  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.