13 hours Ago By Ananya Chaudhuri
Kaynes Technology India Ltd. and Page Industries Ltd. are Motilal Oswal Financial Services Ltd.
's top picks for 2025. The brokerage expects Kaynes Technology to keep the growth momentum on the back of its diverse offerings and expected revenue increase due to exports opportunities. On the other hand, Page Industries has a "great" earning potential, given its decade of track record of deliveries of good growth.
High return on equity of over 40% and great combination are deserving of high multiples. Kaynes Technology India Ltd. is one of the fastest growing electronic manufacturing services company in India with exposure to various end-user industries and across seven high growth sector.
It's focused on deepening its presence, and aims to improve margins backed by high margin-share business, according to Motilal Oswal. The company is confident of sustaining high revenue growth, backed by contribution from new and upcoming segments such as smart meters, aerospace and 'Kavach'. Its backward integration initiative for outsourced semiconductor assembly test, and printed circuit board is on track, which will likely boost overall growth.
The segment is expected to contribute 17%-6% of its financial year 2028 revenue, the brokerage said. "The business will continue to post a robust growth rate over the next few years, with margins likely to expand to 25%/27% at peak utilisation levels," the brokerage said. Kaynes Technology India's new businesses of OSAT/PCB manufacturing will add benefits like improved operational efficiency, lower dependency on third-party suppliers, reduced lead times, and the ability to capture higher wallet share, Motilal Oswal said.
It estimates that Kaynes Technology India's exports will reach 20–33% of its revenue by financial year 2026 and 2028. Large-scale export orders and expanding presence in international geographies will fuel the export revenue growth. The management expects export mix to reach 20% of the total sales by financial year 2026, and about one-third of the total revenue during the next two-three years.
Kaynes Technology India is well-placed to capitalise on growing smart meter market because of leverage on advanced technology and robust execution. The smart metering segment promises high growth due to huge domestic opportunities and export approval from a European multi national companies. Motilal Oswal Financial Services estimates Kaynes Technology India to register a revenue/Adj.
EBITDA/Adj. PAT CAGR of 60%/67%/74% over FY24-27. However, rise in working capital can erode cash flows, supply-chain issues may hamper business operations, and a delay in order execution may moderate the growth trajectory, the brokerage said.
Page Industries Ltd. has witnessed a recovery in second quarter of financial year 2025, after it experienced volume growth challenges in last six to seven quarters. Healthy secondary sales and effectiveness of its ARS system in optimising inventory management helped the recovery, according to Motilal Oswal.
Page Industries will likely captilise better on India's growing innerwear and athleisure markets with the help of favourable macroeconomic trends such as rising incomes, urbanisation, and young population. It holds a dominant position in the mid-premium innerwear segment, driven by its first-mover advantage, strong brand equity of Jockey, low-cost manufacturing, and a well-diversified product portfolio. "We model a revenue and Ebitda CAGR of 13% and 17%, respectively, over FY24-27E," Motilal Oswal said in a note.
Moreover, Page Industries is focusing on expanding its user base by continuously growing its product range coupled with multiple marketing initiatives. Its moat revolves around its strong in-house manufacturing across 16 units, and producing 280 million pieces annually. Page Industries' distribution network spans over 2,710 cities.
The company is further adopting focused expansion strategy and a strong online presence. The company has maintained a robust revenue and earnings growth track record despite headwinds. Sales growth, with lower utilisation of the margin level, helped the track.
The company delivered a return on equity of over 40% in the last 10 years. Moreover, Page Industries maintains a healthy dividend payout ratio..
