Kaynes Tech (KAYNES)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Whenever I see a stock at ₹3,660 with a Graham Number of ₹810.87, I remember Mr. Graham's warning about paying for hope. Kaynes is no sleepy bargain. It has grown revenue at a 49.21% five-year CAGR, and latest sales are ₹804 Cr. But profit growth is -0.40%, so the top line is not yet dropping to the bottom line. ROE of 13.69% and ROCE of 14.28% are respectable, not exceptional. The balance sheet is a comfort: debt/equity 0.19, Altman Z-score 5.06, Piotroski 7/9, promoter holding 53.46%. That tells me the business is unlikely to be in immediate distress and management has skin in the game. Yet free cash flow is -₹437 Cr. A fast grower that consumes cash can be a wonderful machine if returns on incremental capital are high; if not, it is just a cash-hungry enterprise. At P/E 71.43 and P/B 5.28, the market is already celebrating years of flawless execution. EV/EBITDA 17.03 is not outrageous for a high-growth industrial, but the margin of safety is -375.60% against the Graham Number. Latest quarter net profit of ₹77 Cr on ₹804 Cr sales shows thin-ish margins and cyclical/execution risk. Dividend yield 0.00% means no cash return today. So I would classify it as a Fast Grower, but one where price already discounts much success. I want to watch FCF turning positive, profit growth matching sales growth, and capital allocation. Buy only if the gap between price and intrinsic value narrows—not because the story is exciting.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer