Kaynes Technology India
EMS + semiconductor (OSAT/PCB)
- Last close
- ₹3,511.50
- 29 Sept 2026 · reference
- 1D · 1M
- −4.0% · −10.9%
- price-only
- Weight
- 2.4%
- 31 Jul 2026 · Aug rank 12
- Thesis review
- 8 Sep 2026
- Why We Own, p46
Approved description
Mysuru-based end-to-end electronics manufacturing services (EMS) company doing design-led box-build and PCB assembly for automotive, industrial, aerospace/defence, railways, medical and IoT customers - a high-mix, higher-margin niche (16% EBITDA margin vs Dixon's ~3%). It is building India's first commercial OSAT (semiconductor packaging) plant at Sanand, Gujarat (commercialised Mar-2026, multi-chip module shipped) and a bare-PCB/HDI plant in Chennai (Kaynes Circuits), to move up from assembly into components. FY26 revenue Rs 3,626 cr; order book ~Rs 8,900 cr (+20% YoY) at Jun-26.
- 01Fastest-growing listed Indian EMS at scale: 5-yr sales CAGR 54% and PAT CAGR 104% (screener); FY26 revenue +33% to Rs 3,626 cr and Q1FY27 +40%; management guides ~30% FY27 growth ('2x industry') and ~17% EBITDA margin.
- 02Order book Rs ~8,900 cr (+20% YoY) = ~2.3x FY26 revenue, weighted to industrial, auto and aerospace/defence where margins (16%) are 5x Dixon's mobile-EMS margins (2.6-3.0%).
- 03OSAT + PCB step-up: Rs 1,250 cr invested to date (Rs 700 cr OSAT with Rs 170 cr subsidy received; Rs 500 cr PCB), both to reach operational readiness by Q3FY27 with a combined Rs 450-500 cr revenue target in FY27 and higher-margin component revenue thereafter; Sanand shipped India's first commercial multi-chip module in Mar-26.
- 04Policy tailwind: India EMS market $40-45 bn in FY25 heading past $150 bn by FY30 (KPMG, Jun-26) and MOFSL's Rs 6 lakh cr FY27 EMS estimate (26% CAGR); ISM 2.0/ECMS incentives directly subsidise Kaynes' OSAT/PCB capex.
- 05Valuation reset: 1-yr price -49% while EPS grew 19% in FY26; Buoyant's FY28e P/E 46.6x vs MOFSL's 52% PAT CAGR gives a PEG <1 if the OSAT/PCB ramp lands.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 946 | +40.6% | −23.9% |
| Operating Profit | 148 | +31.0% | −23.7% |
| Net Profit | 56 | −24.4% | −38.1% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Sell-side targets are third-party views, not Buoyant's; the upside is recomputed on our reference close, so it differs from the figure printed at the broker's price date.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- Q3FY27 (Oct-Dec 2026): commercial ramp of Sanand OSAT and Chennai PCB plants; first meaningful component revenue.
- Q2FY27 results (Nov-2026): evidence of working-capital normalisation and margin recovery toward 17% guidance.
- ISM 2.0 / ECMS approvals and any anchor OSAT customer announcements (Kaynes was linked to advanced-node packaging news in 2026).
- Working capital and cash burn: debtor days 154 and working-capital days 133 at Mar-26 (from 64), FY26 operating cash flow -Rs 600 cr; net debt rose to ~Rs 800 cr in Q1FY27 - growth is being funded by the balance sheet.
- Execution/timing of OSAT and PCB: both slipped to Q3FY27 readiness; yields, customer qualification and subsidy timing could delay the Rs 450-500 cr FY27 contribution and keep ROE at 9-11% (Buoyant FY27e ROE 11.3%).
- Promoter holding fell 10.1% over 3 years (53.46% at Jun-26) on QIP dilution; further equity raises for semiconductor capex would dilute EPS.