Buy Kaynes Technology India; target of Rs 3100: Anand Rathi

Anand Rathi is bullish on Kaynes Technology India has recommended buy rating on the stock with a target price of Rs 3100 in its research report dated April 12, 2024.

Broker Research

April 16, 2024 / 11:58 IST

Buy

26 Aug, 2025 12:21

Volume

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Anand Rathi's research report on Kaynes Technology India

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India. Company have capabilities across the entire spectrum of Electronics System Development and Maintenance (ESDM) services. They have over three decades of experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, Aerospace and Defense, Outer-space, Nuclear, Medical, Railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. They have advanced manufacturing infrastructure that enable them to manufacture products at variable or flexible volumes across all industry verticals. Their business includes OEM- Box build, OEM-Printed Circuit Board Assemblies (PCBAs), and ODM services in smart metering technology, smart street lighting, brush less DC (“BLDC”) technology, inverter technology, gallium nitride based charging technology and providing IoT solutions for making smart consumer appliances or devices IoT connected. Strong customer base: The company has gained expertise in complex subassemblies, which has helped it to build strong relationships with its customers. The average relationship with its top-10 customers is 7+ years, and no single customer accounts for more than 15% of its revenue. This shows that Kaynes has a diversified customer base and is not reliant on any one customer. This strong customer base is a key competitive advantage for Kaynes. It gives the company a stable revenue stream and helps to reduce its risk. It also allows Kaynes to focus on customer derisking and value addition, which are important for long-term growth. Key customers include Agappe Diagnostics, Canyon Aero, Frauscher Sensor Technology India Private Limited, Hitachi Rail STS India Private Limited, India Japan Lighting Private Limited, Siemens Rail Automation Private Limited, Iskraemeco India Private Limited and Tonbo Imaging India Private Limited.

Outlook

We expect Kaynes to see strong growth going forward due to many factors such as: 1) Development of component/chips ecosystem in India, 2) Capacity expansion on strong order book visibility, 3) Increasing its presence in the domestic market and looking for exports opportunities, 4) Backward integration (bare PCB and OSAT). We re-initiate a ‘BUY’ coverage with a target price of Rs 3,100 .

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