Kaynes Technology India Ltd. is expecting to grow at a compound annual growth rate of 50–60% in the next five years with the support of industrials, automotive and electric vehicles, Chief Financial Officer Jairam Sampath said on Thursday.
In automotive, the company is focusing on improving the quality of the portfolio and Kaynes Technology is already collaborating with Europe players. Now, it is ensuring strategies specialising in certain product categories, according to Sampath. "We expect the automotive segment to grow at the same rate as the company."
In electric vehicles, four–wheelers are not in a stabilised state right now. New product launches are expected, he said, adding that Kaynes Technology is expecting that electric vehicles will take time before becoming standard purchased products in India.
Kaynes Technology is one of the large players in power electronics in India. The sector, however, is unlikely to grow very well because some businesses are shifting from China, Sampath said.
The company is planning to focus on railway signaling in the second half. The aerospace business is likely to grow in financial year 2026, the CFO said.
"Kaynes Technology operates in six industrial verticals. So, a couple of years ago, it was automotive and industrial. In the next financial year, it can be aerospace, railways, and so on. It depends on which kind of business takes off," said Sampath.
"Wherever the business takes off, it comes in a large chunk because some of the businesses are driven by government initiatives and some are driven by large–scale infrastructure and so on," he added.
Kaynes Technology has been working on smart-meter business segment for the last three to four years. It acquired Iskraemeco India which was earlier its customer, noted the CFO.
Around 250 billion smart meters are to be installed and Iskraemeco India has delivered 10–15% of the number.
"Smart meter installation has become standard. It has kind of stabilised. So, there is no more surprises about how to run and maintain," Sampath stated.
Kaynes Technology is now expecting a 15–20% market share in the next five to 10 years' time frame. In terms of revenue, the company is seeing a number anywhere from Rs 500–1,000 crore from smart-meter business per annum.
Jefferies' Take On Kaynes Technology
Jefferies kept 'hold' on Kaynes Technology stock and raised the target price to Rs 5,430 apiece from 4,540 apiece, implying a potential upside of 3% from the previous close.
Jefferies revised Kaynes Technology's earning-per-share estimates upward by 2% for financial year 2025 and 2026.
The EPS revision was influenced by strong industry growth and operating margin to stay at 14–15%. Niche integrated backward business also impacted Jefferies to hike the target price.
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