Over 150% returns in a year! Anand Rathi bullish on Kaynes Tech stock; sees another 25% upside

Shares of Kaynes Technology India have delivered over 150 returns in the last 12 months. The stock has recovered over 163 per cent from its 52-week low of Rs 934.85 and is still trading 24 per cent lower from its 52-week high of Rs 3,248.

In its recent report, Anand Rathi has re-initiated a ‘BUY’ coverage on Kaynes Technology India stock with a target price of Rs 3,100. It expects Kaynes to see strong growth going forward due to development of component/chips ecosystem in India, capacity expansion on strong order book visibility, increasing presence in the domestic market, exports opportunities and backward integration.

The broking firm noted that Kaynes saw a sharp jump in the order book to Rs 37,890 million till December 31, 2023 from Rs 6,705 million in FY21 with an increase in average order value, which proves its execution capabilities.

"With new customers coming onboard, and rising wallet share with existing customers, company will continue to see strong order-book build up in coming years, which will provide revenue visibility," it added.

Anand Rathi said that the company will also benefit the most from its high domestic presence (almost 85% of its revenues comes from the domestic markets), capacity expansion across industries in India, and uptick in industries such as automotive, industrial, railways, aerospace, and defense. It has received approval under the Production Linked Incentive (PLI) for white goods and PLI for telecom products.

About Kaynes Technology India

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India.

The company has experience in providing conceptual design, process engineering, integrated manufacturing and life cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, internet of things (IoT), information technology (IT) and other segments.