Motilal names Kaynes Technologies as top pick for 2025, predicts 31% upside
Kaynes Technologies' (KAYNES) position as a fast-growing, diversified, and backward-integrated player in the electronics manufacturing services (EMS) sector, Motilal Oswal has increased its target price to Rs 9,100, signaling a 31% upside.
Kaynes is the only rapidly growing (over 50% growth guidance), well-diversified (catering to over seven end-user industries), and backward-integrated player (OSAT/PCB facilities to commence by FY26) within the EMS space, with a strong focus on value addition (42% box-build share in FY24).
“We expect the company to continue its robust earnings momentum on the back of: 1) a strong revenue growth supported by a large order book (Rs 5,400 crore; 3x FY24 sales) and continuing robust order inflows (Rs 2,400 crore in 1HFY25) and 2) margin expansion driven by the rising share of high-margin businesses coupled with operating leverage,” said Motilal Oswal in its report.
Kaynes Technologies has maintained its FY25 revenue growth guidance of over 60% YoY, despite a slowdown in the EV segment. Strong contributions from smart meters, leveraging acquired technology and a new factory, and long-term growth potential in railways are expected to drive future performance.
The company is well-positioned in the growing smart meter market, leveraging acquired technology (Iskraemeco) and a new Telangana factory. With significant domestic opportunities (Rs 61,500 crore) and export approvals, smart meters are expected to be a key growth driver.
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