Kaynes Technology India Limited Just Beat EPS By 9.9%: Here's What Analysts Think Will Happen Next

A week ago, Kaynes Technology India Limited (NSE:KAYNES) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 4.6% to hit ₹5.0b. Statutory earnings per share (EPS) came in at ₹7.84, some 9.9% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kaynes Technology India after the latest results.

See our latest analysis for Kaynes Technology India

Following the latest results, Kaynes Technology India's 18 analysts are now forecasting revenues of ₹29.8b in 2025. This would be a major 48% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 48% to ₹48.55. Before this earnings report, the analysts had been forecasting revenues of ₹28.7b and earnings per share (EPS) of ₹44.42 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Kaynes Technology India 13% to ₹4,295on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kaynes Technology India, with the most bullish analyst valuing it at ₹5,000 and the most bearish at ₹3,233 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 69% growth on an annualised basis. That is in line with its 64% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So it's pretty clear that Kaynes Technology India is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kaynes Technology India's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Kaynes Technology India. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Kaynes Technology India going out to 2027, and you can see them free on our platform here..

Even so, be aware that Kaynes Technology India is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com