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Investing.com - JPMorgan has initiated coverage on Kaynes Technology India Ltd (KAYNES:IN) with an Overweight rating and a price target of INR7,150.00.
The investment bank expects Kaynes to be the fastest-growing company in its coverage universe, projecting a 46% revenue compound annual growth rate (CAGR) over fiscal years 2025-2028, with EBITDA margins expanding by 60 basis points to 15.7% during this period.
JPMorgan forecasts that Kaynes will achieve its target of $1 billion (Rs86 billion) in revenues by fiscal year 2028 with 15% EBITDA margins, driven by growth in existing business segments, particularly Industrial and Auto, along with revenues from new businesses including OSAT and PCB starting in fiscal year 2027.
The bank expects OSAT and PCB scale-up to continue through fiscal year 2030, contributing Rs45 billion in revenues by that time, with exports potentially becoming the next growth frontier given the company’s intention to pursue mergers and acquisitions outside India following its Rs16 billion qualified institutional placement (QIP).
JPMorgan values Kaynes Technology at 62 times June 2027 earnings based on discounted cash flow analysis, assuming a 34% revenue CAGR over the next ten years, and notes that the company, along with Syrma, is positioned to benefit from increasing grid investments across the region through exposures such as smart meters.
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