CMP: ₹2,884.50
Kaynes Know-how Q3 income surged 76 per cent y-o-y to ₹510 crore, 10 per cent larger than our estimates. Income was led by wholesome B2B demand and robust order backlog. Income from the industrials section spiked 217 per cent y-o-y to ₹270 crore on rising import substitution within the EV house.
Automotive income grew 28 per cent y-o-y to ₹140 crore and Railways income rose 58 per cent to ₹45.20 crore on wholesome challenge pipeline. Income from the patron section (together with IT & IoT and others) fell 55 per cent to ₹15.90 crore, medical declined 58 per cent to ₹11.50 crore, and aerospace, defence, nuclear & house by 47 per cent y-o-y to ₹3.60 crore. Administration has acquired a big ticket order in aerospace and defence, the affect of which is to be seen from This autumn-FY24.
We decrease our FY24E EPS by 1 per cent and FY25E EPS by 23 per cent on larger different bills because of operationalization of OSAT and printed circuit board (PCB). We elevate our FY26 EPS by 21 per cent as OSAT kicks in.
We elevate our TP by 19 per cent to ₹3,100 from ₹2,610 on 56x (from 50x) December 2025 P/E. We reiterate Accumulate as Kaynes is a most popular play on India’s industrial progress alternative, import substitution, and a diversified enterprise stream.
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