Prabhudas Lilladher’s analysis report on Kaynes Expertise India
KAYNES has guided a progress of 60% in FY26 with a margin growth of 50bps YoY, primarily pushed from automotive, industrial, aerospace and IoT phase. In Q4FY25 firm is having an order ebook of Rs 66bn primarily pushed from aerospace, industrial and automotive. The OSAT facility growth is on observe, with estimated income beginning in Q4FY26, whereas PCB manufacturing is anticipated to start as deliberate, contributing to income from FY27 onwards. Within the Export aspect Firm is anticipating 15% contribution by FY26 (present contribution 9%). Firm acquired August Electronics to strengthen its North American footprint and to get entry to high-value international clients in sectors like power, petroleum, medical, telecom, and IT. KAYNES reported 54.5% YoY income progress in Q4FY25, pushed by a 57.4% YoY enhance within the trade phase (which contributed 55% rev.). The EBITDA margin stood at 17.1%, (Expanded by ~210bps). We estimate FY25-27E income/EBITDA/PAT CAGR of 54.4%/58.0%/44.3%, with EBITDA margin growth of ~70bps. Downgrade to ‘Maintain’.
Outlook
We revised upward our FY26/FY27 EPS estimates by 5.1%/3.6%, reflecting robust efficiency in Q4FY25, primarily pushed by Industrial and IT phase. We’re downgrading our advice to “HOLD” from “Accumulate” because of the vital uptick within the inventory value. Our revised DCF-based TP is Rs 5,744 (up from Rs 5,528), implying PE of 60x FY27E earnings.
For all suggestions report, click on right here
Disclaimer: The views and funding suggestions expressed by funding consultants/broking homes/score businesses on moneycontrol.com are their very own, and never that of the web site or its administration. Moneycontrol.com advises customers to test with licensed consultants earlier than taking any funding selections.
Kaynes Expertise India – 19052025 – prabhu
{content material}
Supply: {feed_title}
