Kaynes Technology and 3 other stocks that can deliver returns of up to 39%; Do you own any?

Synopsis: JM Financial has recommended four high-potential stocks like Eternal, Star Cement, KIMS, and Kaynes Technology assigning ‘Buy’ ratings with upside potential of 29–39%, citing strong earnings growth, expansion plans, robust order books, and margin improvements.

JM Financial has recommended four high-potential stocks with upside potential of up to 39%, highlighting strong earnings growth, robust order books, margin improvements, and expansion plans across technology-driven consumer services, cement, healthcare, and electronics sectors.

Eternal Ltd

Eternal Ltd, formerly known as Zomato Ltd, is a leading Indian tech-enabled consumer services company. It operates a diversified digital ecosystem including online food delivery, quick-commerce services, B2B food supply, and live events/ticketing. 

With a market capitalisation of Rs. 2,75,228 cr, the shares of Eternal Ltd closed at Rs. 285.20 per share, down from its previous close of Rs. 297.90 per share. JM Financial has assigned a ‘Buy’ rating to Eternal, setting a target price of Rs. 400, which points to an upside of around 34%.

JM Financial adds that the company has the potential to rapidly compound earnings, making it a standout in the sector. The firm highlights Eternal’s strong position among new-age internet companies, driven by disciplined cost management and improving margins.

Kaynes Technology India Ltd

Kaynes Technology India Ltd is an Indian electronics manufacturing and design company that offers end-to-end electronics system design and manufacturing solutions, including PCB assembly, box-build services, and original design manufacturing. Kaynes serves industries such as automotive, aerospace, medical, industrial, and telecom, with facilities across India and international clients.

With a market capitalisation of Rs. 26,423 cr, the shares of Kaynes Technology India Ltd closed at Rs. 3,941.75 per share, down from its previous close of Rs. 4,085.60 per share. JM Financial has reiterated a ‘Buy’ rating on Kaynes Technology India, setting a target price of Rs. 5,100, which suggests a potential upside of approximately 29%.

The firm notes that capital expenditure is being largely met through internal cash flow and subsidies, supporting the company’s expansion plans. Despite recent execution delays impacting results, the company’s order book surged 50% year-on-year to Rs 9,100 crore. JM Financial highlights that new business segments like OSAT and PCBs are gaining momentum, aided by incentives from the India Semiconductor Mission.

Star Cement Ltd

Star Cement Ltd is a prominent cement manufacturer in India, especially known as the largest producer in Northeast India. Established in 2001, it operates cement plants in Meghalaya and Assam and sells building materials under the Star Cement brand. The company is expanding its production capacity and market presence to other parts of eastern India.

With a market capitalisation of Rs. 8,752 cr, the shares of Star Cement Ltd closed at Rs. 216.55 per share, down from its previous close of Rs. 218.80 per share. JM Financial has reaffirmed a ‘Buy’ rating on Star Cement, setting a target price of Rs. 300, which indicates a potential upside of about 39%.

Volume growth remained robust at 21%, and expansion projects are on track, with a total planned capex of Rs 4,800 crore. The brokerage points out a 94% year-on-year rise in EBITDA to Rs. 200 crore, fueled by strong realisations.

Krishna Institute of Medical Sciences Ltd (KIMS) 

KIMS is a leading Indian healthcare company running a network of multi-speciality hospitals under the KIMS Hospitals brand. It provides medical services across more than 40 specialities, focusing on tertiary and quaternary care. KIMS has hospitals in multiple states including Telangana, Andhra Pradesh, Maharashtra, Karnataka, and Kerala.

With a market capitalisation of Rs. 27,353 cr, the shares of Krishna Institute of Medical Sciences Ltd closed at Rs. 683.60 per share, down from its previous close of Rs. 698.85 per share. JM Financial has maintained a ‘Buy’ rating on Krishna Institute of Medical Sciences, assigning a target price of Rs 931, indicating a potential upside of 36%.

The brokerage notes plans for expansion across Telangana, Andhra Pradesh, Maharashtra, and Tamil Nadu, emphasising cost-efficient additions to the network. While recent results were affected by bed closures due to renovations and regional disruptions, the firm anticipates a strong rebound as new units come online and stabilise.

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