Kaynes Technology India Ltd.
NSE: KAYNESKaynes Technology India Ltd.: A 30-second snapshot
Kaynes Technology (KAYNES) is an electronics manufacturing services company trading at ₹3,271.9, down 47.95% over the past year and 57.5% below its 52-week high. Q4 FY26 results reported on May 13 2026 showed net profit declining 22% YoY to ₹91 crore despite a 26% revenue jump, followed by a JPMorgan downgrade and a single-session drop of approximately 17-20%. Trailing PE stands at 60.24 with ROE of 9.57% and debt-to-equity of 19.17, while FCF has been negative across all tracked years.
P/E
60.2
Forward P/E
33.9
ROE
+9.6%
Debt / Equity
19.17
Profit Margin
+9.6%
Div. Yield
—
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
31/100
News
8 headlines · 1 positive · 6 negative
Kaynes Tech plunges over 17% as firm misses guidance in Q4; JPMorgan downgrades stock - Moneycontrol.com
Moneycontrol.com
Why Kaynes Technology shares crashed 19% | Downgrade by brokerage - Target price cut - Business Today
Business Today
Kaynes Tech Hits Lower Circuit After Weak Q4 And Guidance Miss - NDTV Profit
NDTV Profit
Kaynes Tech shares tank 20% after JPMorgan downgrades, cuts price target on guidance miss - CNBC TV18
CNBC TV18
Kaynes Technology Q4 Results: Profit falls 22% YoY to Rs 91 crore; revenue jumps 26% - The Economic Times
The Economic Times
Recent context
- ·Q4 FY26 results reported May 13 2026 showed net profit down 22% YoY to ₹91 crore alongside a revenue rise of 26%, with the company missing its own guidance; JPMorgan issued a downgrade and cut its price target in response, per Moneycontrol and CNBC TV18 reporting on May 14.
- ·Six of eight recent news articles carry negative sentiment, concentrated around the Q4 results event; the stock hit a lower circuit on May 14, reflecting the scale of the market reaction to the guidance miss.
- ·The gap between trailing PE (60.24) and forward PE (33.88) is wide; whether the implied earnings recovery is achievable will depend on whether margin trends reverse after five consecutive years of negative earnings growth.
Strengths
- +Revenue CAGR of 26.2% over 5 years reflects sustained top-line expansion in the electronics manufacturing services segment, reaching the Q4 FY26 quarter with 26% YoY revenue growth even as profits compressed.
- +Forward PE of 33.88 versus trailing PE of 60.24 implies the market is pricing meaningful earnings normalisation; if margins recover, the current multiple would re-rate downward against that earnings base.
- +At ₹3,271.9, the stock sits in an RSI zone of 31.54 — historically associated with oversold conditions — with the price approximately 35-58% below multiple moving averages, reflecting a substantial compression from peak valuations.
- +Analyst coverage across 21 analysts assigns a mean rating of 2.66 on a 1-5 scale (lower = more constructive), suggesting a non-trivial portion of sell-side coverage has not moved to the most cautious end of the scale despite the drawdown.
Weaknesses
- −FCF has been negative across all available tracked years — the company has consistently consumed cash rather than generating it, even as revenue compounded at 26.2%.
- −Debt-to-equity of 19.17, classified as rising, is materially elevated for a non-financial electronics manufacturer; this level of leverage reduces financial flexibility if revenue growth moderates or margins remain compressed.
- −5-year earnings growth of -26.3% against 26.2% revenue CAGR indicates that scale has not improved profitability; profit fell 22% YoY in Q4 FY26, and the quality score of 21 ranks 6th of 6 infrastructure peers tracked in this analysis.
- −The stock is 57.5% below its 52-week high, 35.4% below the 200-DMA, and has declined 21.25% in the past 3 months — the price trend has accelerated to the downside following the Q4 guidance miss, with no support levels identified in the current data.
Open questions
- ?If revenue has grown at 26% CAGR for five years while earnings have declined 26.3% cumulatively, what structural factors are absorbing the top-line growth — input cost pass-through constraints, fixed-cost leverage not yet converting, or pricing pressure from customers?
- ?At a debt-to-equity of 19.17 with rising debt and no positive FCF on record, how does the company plan to service and eventually reduce leverage — and what portion of future revenue growth is earmarked for debt obligations versus reinvestment?
- ?The forward PE of 33.88 implies a significant step-up in earnings; given the Q4 FY26 guidance miss and 22% YoY profit decline, what specific operational or margin levers does management point to for earnings recovery, and over what time horizon?
- ?With the stock 57.5% below its 52-week high and a JPMorgan downgrade as the most recent major analyst action, how have the other 20 analysts in coverage responded to the Q4 results — and have their ratings or price targets changed materially since May 14?
Peer comparison: Infrastructure
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| KAYNES | Kaynes Technology India Ltd.You're viewing | 60.2 | +9.6% | 21 |
| Industry avg | across 5 peers | 69.5 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.8 | — | 57 |
| ABB | ABB India Ltd. | 87.0 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.7 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.7 | — | 24 |
Technical state
Current price
₹3,271.90
SMA 50
₹3,889.32
SMA 200
₹5,063.83
RSI (14)
31.5 (neutral)
From 52w high
-57.5%
1Y return
-48.0%
3M return
-21.3%
50-DMA
Below
200-DMA
Below
Algorithmic resistance levels
Risk flags
- highFree cash flow has been negative in all available tracked years despite a 26.2% revenue CAGR over 5 years; the business has consumed rather than generated cash across its growth phase.
- highDebt-to-equity of 19.17 is materially elevated for an electronics manufacturing services company operating outside the financial sector; the debt trend is classified as rising, compounding balance-sheet leverage risk.
- high5-year earnings growth of -26.3% against 26.2% revenue CAGR signals severe margin deterioration; ROE stands at 9.57%, with only 1 of tracked years exceeding 15%, and FCF has been negative across all tracked years — the quality score of 21 ranks last (6th of 6) among infrastructure peers.
- highCurrent price of ₹3,271.9 is 57.5% below the 52-week high and 35.4% below the 200-DMA (₹5,063.83); the stock is also 15.9% below the 50-DMA (₹3,889.32), with a 1-year price change of -47.95% and a 3-month change of -21.25%.
- highQ4 FY26 results showed a 22% YoY profit decline to ₹91 crore alongside a guidance miss, triggering a single-session decline of approximately 17-20% on May 14 2026; JPMorgan issued a downgrade in response and cut its price target.
- mediumForward PE of 33.88 against a trailing PE of 60.24 implies a significant earnings recovery priced in by the market; however, the 5-year earnings trend is negative (-26.3%), adding uncertainty to whether that recovery materialises.
Cross-section contradictions
- Revenue grew 26.2% on a 5-year CAGR basis but 5-year earnings growth is -26.3%, meaning scale has not translated into profit — a structural divergence between top-line expansion and bottom-line delivery.
- News sentiment is negative (6 of 8 articles negative) and the stock is down 47.95% over 1 year and 21.25% over 3 months, yet the mean analyst rating of 2.67 across 21 analysts (1-5 scale, lower = more constructive) sits in the mid-range — analyst and price-action assessments have diverged sharply post Q4 results.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days