Kaynes Technology management targets 20-25% growth, Rs 1,000 crore OSAT business over 3 years
Aditya B
Kaynes Technology remained in focus on May 19 after the company’s management said it is targeting 20-25% growth and a Rs 1,000 crore OSAT business over the next three years, despite the stock having fallen sharply earlier after a weak Q4 performance.
Executive Vice Chairman Ramesh Kunhikannan told ET Now that the company remains focused on growth even as the recent quarter was impacted by weakness linked to U.S. duties.
The management commentary comes after Kaynes Technology shares had plunged nearly 17% on May 14, following its March quarter results and a downgrade by JPMorgan.
The company had reported consolidated net profit of Rs 91 crore for Q4 FY26, compared with Rs 116 crore in the corresponding quarter last year, marking a 22% year-on-year decline.
The stock had come under pressure after the company missed its own revenue guidance and also fell short of Street expectations. JPMorgan downgraded the stock to Neutral and assigned a target price of Rs 4,000.
The brokerage also cut earnings estimates by 12-17% over the next two years, citing lower expectations across the company’s core EMS, OSAT and PCB businesses. It also flagged elevated net working capital days as a concern.
Despite the weak quarter, Kaynes Technology management has maintained its medium-term growth ambition. The company is targeting growth of 20-25% and expects its OSAT business to reach Rs 1,000 crore over the next three years.
The OSAT segment remains important for Kaynes Technology as India continues to push electronics manufacturing and semiconductor-linked capabilities.
Overall, the May 19 management commentary signals confidence in the company’s medium-term growth outlook, even as investors remain cautious after the earlier stock fall triggered by the Q4 miss, earnings downgrade and working capital concerns.
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