Kaynes Tech Q1 profit falls, brokerages cut targets, working capital worries

The Story in Brief

Kaynes Technology's June quarter profit fell 24% year-on-year, missing estimates by 7% due to lower other income and higher taxes. Net working capital surged from Rs 2,000 crore to Rs 2,400 crore quarter-on-quarter,or 163 days from 125 days, while net debt jumped from Rs 200 crore to Rs 800 crore. Nuvama cut its FY27 and FY28 earnings estimates, rating the stock 'Reduce' with a fresh target of Rs 3,450. MOFSL retained a 'Buy' rating and the Street-high target of Rs 5,000, citing a robust order book of Rs 8,900 crore and scaling in EMS and new businesses.

Global brokerages were split: Jefferies gave 'Buy' at Rs 4,480, Nomura and JPMorgan said 'Neutral' at Rs 4,094 and Rs 3,600, and CLSA said 'Hold' at Rs 3,580. Among domestic firms, IIFL and Axis Capital said 'Add' at Rs 4,449 and Rs 4,136, while JM Financial and Equirus issued 'Reduce' at Rs 3,850 and Rs 3,500. Kaynes reiterated its FY27 revenue guidance of growing twice the industry rate and said OSAT and PCB commercialisation will start from the third quarter.