Jefferies Raises Target Price for Kaynes Technology India Amid Strong Growth Prospects
Investing.com – Leading financial services firm Jefferies has reaffirmed its “Buy” rating on Kaynes Technology India Ltd (NSE: KAYNES), while revising its target price upward from 7,600 Indian Rupees (INR) to 7,780 INR. Despite the stock’s impressive 60% rally since March 2025, Jefferies highlighted several key growth drivers that support a bullish outlook on the company’s future performance.
Key Growth Drivers and Business Expansion
Jefferies expects Kaynes Technology to witness significant revenue expansion over the coming years, particularly driven by the commencement of its OSAT (Outsourced Semiconductor Assembly and Test) production ramp-up starting in the 2027 fiscal year. The firm projects that by fiscal 2030, the company’s annual revenue from OSAT operations alone could reach 35 billion INR, signaling robust growth in one of the most critical segments of the semiconductor supply chain.
In addition to OSAT, Kaynes Technology is actively investing in multi-layer and HDI (High-Density Interconnect) PCB (Printed Circuit Board) manufacturing capabilities. The company has also secured necessary approvals to expand its Electronic Contract Manufacturing Services (ECMS), strengthening its position as a trusted contract manufacturer in the electronics sector.
Financial Performance Highlights
During the September quarter, Kaynes Technology reported earnings that doubled compared to the same period in the previous year, reflecting strong operational momentum. However, the company’s working capital cycle extended slightly from 108 days last year to 116 days in the recent quarter, a factor Jefferies is monitoring.
Jefferies has raised its earnings per share (EPS) estimates for Kaynes Technology by 4% to 6%, anticipating a compound annual growth rate (CAGR) of approximately 51% in EPS across the 2025 to 2028 fiscal years. This optimistic forecast underpins the firm’s confidence in the company’s sustained profitability and market share gains.
Outlook and Investment Implications
The upgrade in target price and affirmed “Buy” recommendation underscore Jefferies’ conviction in Kaynes Technology’s strategic initiatives and growth potential amid a rapidly growing electronics manufacturing and semiconductor assembly market in India. Investors may view this as a compelling opportunity to capitalize on the company’s expanding footprint in high-demand tech segments.
This report was translated with assistance from artificial intelligence. For detailed terms and conditions, please refer to Investing.com’s policies.
Disclaimer: Financial investments carry risks, including potential loss of principal. Please consider your financial situation carefully and consult a professional advisor before making any investment decisions. The information provided here is based on sources believed reliable but is not guaranteed for accuracy or completeness.
