International brokerage firm Morgan Stanley (NYSE:MS) has expressed a positive outlook for Kaynes Technology India, an extensive electronics manufacturer, following a year in which the firm yielded a return exceeding 203 per cent. This Thursday, the brokerage firm anticipates nearly 19 per cent upside potential from the stock's closing price on Wednesday.
Morgan Stanley has set a target price of Rs 2,440 on Kaynes Technology India's stock. This bullish sentiment is echoed by Anil Singhvi, Managing Editor of Zee Business, who has selected it as his stock pick for the day and suggests a target price of Rs 2,120 per share.
In their report, Morgan Stanley highlighted India's significant contribution to electronic manufacturing and projected a compound annual growth rate (CAGR) of 21 per cent for this segment's revenue by FY22–32. By FY32, they expect the revenue to reach $604 billion.
The company's strong financial performance in recent quarters supports this positive outlook. For Q2, Kaynes Technology India reported a net profit of Rs 25.19 crore, an impressive increase of 105.66 per cent from Rs 12.25 crore in the same quarter last year. The company's net sales for the quarter also rose by 51.61 per cent from Rs 191.67 crore in Q2 of 2022 to Rs 290.59 crore.
Moreover, Kaynes Technology's total income in Q1 FY24 stood at Rs 299.08 crore, compared to Rs 191.9 crore during the same period in the previous year.
The company's share price history for this year reveals a remarkable uptrend. Shares have surged over 182 per cent in 2023, significantly outperforming the headline index's rise of over 8 per cent.
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