This Tech stock is set to soar 45%; Jefferies keeps Buy, lifts target to Rs 7,780

Shares of Kaynes Technology came into focus on Monday after Jefferies maintained a Buy rating and raised the target price to Rs 7,780, implying an upside of nearly 45 per cent from the current market price of Rs 5,358.

Strong momentum in electronics and IoT

Jefferies highlighted that Kaynes has demonstrated robust growth in electronics manufacturing, IoT solutions, and high-tech segments. While the company is currently managing higher working capital, the management said the situation is temporary and well-monitored. The CFO told Jefferies that working capital may remain stretched around 115 days in the March quarter, roughly 35-40 per cent of FY26 projected sales, but the company has a clear roadmap to normalize it. Analysts say this is a short-term issue that does not undermine long-term growth prospects.

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OSAT business milestone

Kaynes recently completed its first pilot order in the OSAT (Outsourced Semiconductor Assembly and Testing) segment, delivering 900 chips to customer AOS. The company aims to reach 1.5 million chips per day by Q1 FY27, marking a key step in India’s semiconductor mission. Analysts see this as a potential major growth driver for the company in the coming years.

High-tech approvals add strategic edge

Kaynes has secured several ECMS approvals that expand its footprint in high-tech electronics where Indian players are currently few:

1) HDI PCB (High-Density Interconnect)

2) Multi-layer PCB

3) Camera module solutions

4) Laminates

Jefferies calls these approvals a strategic advantage, enabling the company to operate in premium segments with strong growth potential.

Strong growth outlook

Jefferies projects sales and EPS growth at a CAGR of around 51 per cent between FY25 and FY28 — a standout growth rate for a tech-electronics company.

About Kaynes Technology

Founded in 2008, Kaynes Technology offers end-to-end electronics and IoT solutions, covering the entire manufacturing lifecycle. Key sectors include automotive, industrial machinery, aerospace & defence, space technology, medical devices, railways, and IT/IoT solutions.

Investor takeaway

Jefferies notes that while the stock may not be undervalued, its long-term growth potential is substantial. OSAT initiatives and high-tech approvals could position Kaynes as a future electronics leader in India. Despite short-term working capital pressures, the stock offers strong upside of 45 per cent, making it a compelling option for growth-focused investors.