The Kaynes Technology share price is in the spotlight. The domestic brokerage house Motilal Oswal sees nearly 30% upside in this electronic manufacturing services (EMS) company, three other brokerages are taking a more cautious view.
The stock has delivered a strong operating performance in the June quarter. But higher working capital, rising debt and delays in new businesses are raising questions about how smoothly that growth can translate into cash.
What are brokerages seeing differently? Let’s take a look –
Kaynes Technology: Motilal Oswal sees 30% upside
The brokerage house Motilal Oswal has retained its ‘Buy’ rating on Kaynes Technology with a target price of Rs 5,000. This indicates an upside potential of around 30% from the current market price.
Kaynes reported a strong Q1FY27, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rising 31% year-on-year (YoY) to Rs 150 crore.
The core EMS business was the main driver, growing 48% YoY. Automotive, industrial, information technology, railways, aerospace and medical businesses also recorded growth.
Motilal Oswal said, “With a robust order book as of June 2026 (Rs 8,900 crore, up 20%), the company is likely to sustain strong revenue growth momentum going forward.”
The brokerage expects Kaynes to benefit further from its Outsourced Semiconductor Assembly and Test (OSAT) and Printed Circuit Board (PCB) businesses.
Kaynes Technology: Nuvama turns cautious after sharp rally
Nuvama has taken a different stance. It has downgraded Kaynes Technology to ‘Reduce’ and raised its target price to Rs 3,450 from Rs 3,150.
The target implies a downside of about 10.5%.
Revenue and EBITDA increased 40% and 31% YoY in Q1FY27. However, Profit After Tax (PAT) declined 24% due to lower other income and a higher tax rate.
The bigger concern is the balance sheet. Net working capital increased to Rs 2,400 crore from Rs 2,000 crore in the previous quarter, while net debt rose to Rs 800 crore.
Nuvama noted, “We are cutting FY27/28E EPS by 12%/2% to factor in Q1 miss and outlook.”
Kaynes Technology: Nomura sees limited upside
Nomura has maintained a ‘Neutral’ rating and raised its target price to Rs 4,094 from Rs 3,720. That leaves only around 6% upside.
The brokerage highlighted stronger revenue growth outside smart meters. However, it remains concerned about working capital and the heavy investment required for the OSAT and PCB businesses.
Nomura said, “working capital remains elevated due to the smart meter business, and the strategy to bring it down will remain a key monitorable.”
It also believes weak free cash flow could put pressure on the balance sheet as Kaynes expands into new businesses.
Kaynes Technology: JM Financial flags cash-flow concerns
JM Financial has also retained its ‘Reduce’ rating with a target price of Rs 3,850, implying marginal downside.
According to the JM Financial report, Kaynes delivered strong profit and loss performance, but several other areas remained under pressure.
The commercialisation of OSAT and PCB businesses has been pushed to Q3FY27. Receivable days have also remained elevated, particularly in the smart-metering business.
JM Financial said, “Structurally, regaining investor confidence and cleaning up the balance sheet are key priorities for Kaynes.”
The brokerage also highlighted negative operating cash flow of around Rs 260 crore and net debt of about Rs 560 crore at the end of June.
Kaynes Technology: What should investors watch?
The divide among brokerages comes down to one question – can Kaynes convert its strong growth into cash?
The company has a sizeable order book and strong growth across its core EMS business. But working capital, debt and the execution of OSAT and PCB projects remain key monitorables.
For Motilal Oswal, the growth opportunity outweighs these near-term concerns. Nuvama, Nomura and JM Financial, however, recommend a wait and watch approach so investors can look for improvement in cash generation and balance-sheet strength.
Disclaimer: The brokerage ratings, target prices, and stock views mentioned above are compiled strictly for informational and news reporting purposes and do not constitute investment advice, an offer, or a solicitation to buy or sell any securities. Stock market investments are subject to market risks, and target prices or analyst projections may change without prior notice based on company performance and market conditions. Readers are strongly advised to conduct their own due diligence and consult a SEBI-registered financial advisor before making any buy, sell, or hold decisions based on these recommendations. This disclaimer has been generated using AI to support user well-being and responsible content consumption.