Kaynes Technology India Ltd – ₹47,600 Cr Market Cap, P/E 150, and Order Book Thicker than CAs’ Audit Files
1. At a Glance
Kaynes is the current “tech darling” of Indian manufacturing. Sales up 44%, profits up 52%, order book ₹6,047 Cr, and expansion plans that make even Ambani look cautious. Yet, stock trades at P/E 150 and EV/EBITDA 84. Basically, it’s the Zomato of electronics manufacturing—investors are betting on 2035 while balance sheet still sweats in 2025.
2. Introduction
Kaynes is the poster child of India’s “Make in India + Semicon dreams” story. Born in 2008, it started as a PCB assembler, now it wants to be India’s Foxconn + TSMC + SpaceX vendor rolled into one.
The company caters to everything from electric vehicles to space satellites, from defense drones to IoT to nuclear plants. If your gadget blinks, beeps, or launches into orbit, Kaynes probably supplied something.
But here’s the twist: despite strong execution (16 plants, ₹6,000 Cr order book, global clients like Siemens and Hitachi), valuations are in orbit. P/E of 150 means you’re paying premium for a company still building OSAT and HDI PCB plants, both only expected to deliver by FY26.
Would you pay today for a thali where main course arrives after 2 years?
3. Business Model – WTF Do They Even Do?
Kaynes splits business into:
OEM – PCB Assembly (47%): Bread and butter. They prototype, assemble, test, deliver full boards. Think brain + veins of electronics.
OEM – Box Build (43%): Moving up value chain. System integration, harnesses, plastic molding. Basically “entire machine inside a box.”
ODM/IoT Solutions (10%): Design + product engineering. Where they flex R&D muscles and try to look sexy for global tech buyers.
Sector mix (9M FY25):
Industrial/EV 55% (was 30% in FY22)
Auto 28% (down from 34%)
Railways 7%
Medical 2%
Others 1%
Geography mix: India 90% of FY24 revenue. Global expansion is still more PowerPoint than P&L.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹673 Cr
₹504 Cr
₹984 Cr
+33.6%
-31.6%
EBITDA
₹113 Cr
₹67 Cr
₹168 Cr
+68.7%
-32.7%
PAT
₹74.6 Cr
₹51 Cr
₹116 Cr
+46.9%
-35.6%
EPS (₹)
11.1
7.9
18.2
+40.0%
-39.0%
Commentary: Growth party still on, but QoQ hangover visible. Cyclical lumpiness + capex strain = quarterly rollercoaster.
5. Valuation – Fair Value Range Only
P/E Method: EPS TTM ₹49. CMP ₹7,100 → P/E 145. Industry avg ~36. Even a fair P/E 60–80 gives range ₹2,940 – ₹3,930.
EV/EBITDA: EV ~₹47,460 Cr; EBITDA TTM ₹563 Cr → EV/EBITDA 84. Fair 25–35 → Value range ₹2,800 – ₹3,900.
DCF (simplified): Assume 30% PAT CAGR till FY28 (ambitious), terminal 6%, cost of equity 12%. Fair range ₹3,500 – ₹4,500.
👉 Fair Value Range = ₹2,800 – ₹4,500. CMP ₹7,100 = way above fair zone. Disclaimer: Educational only.
6. What’s Cooking – News, Triggers, Drama
Capex Frenzy: ₹4,800 Cr to be spent. OSAT in Gujarat, HDI PCB in Tamil Nadu. Revenue target Q4 FY26.
MoU Tamil Nadu: ₹4,995 Cr investment over 6 yrs. Politicians love ribbon-cutting, investors
