KAYNES

Kaynes Technology plunged 17 percent today after stock following the company’s March quarter earnings. The Mysuru-based electronics system design and manufacturing firm reported a consolidated net profit of Rs 91 crore for the fourth quarter, down 22 percent from Rs 116 crore recorded in the same period last year. Kaynes fell significantly short of expectations, missing its own Q4FY27 revenue guidance by 27 percent. The company also underperformed respectively. In addition, net working capital days remained elevated at 125 days, well above the company’s guidance of 85 days. The brokerage has cut its earnings estimates for the next two years by 12–17 percent, citing weaker projections across the core EMS, OSAT, and PCB businesses. Firms also reduced the valuation multiple for the core EMS business to 33x from 45x, driven by lower revenue growth expectations over the medium-to-long term and higher projected net working capital days in its discounted cash flow (DCF) model. Despite the downgrade, Kaynes to deliver a strong 40–45 percent revenue and earnings CAGR during FY26–28, supported by the scale-up of its OSAT and PCB operations.