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JPM on Kaynes Tech:

Overweight, Target Price Rs 6100

3Q missed on both revenues and margins.

Revenue grew 22% YY but came in 16%/6% below consensus/JPMe, while Ebitda margins expanded 60bps YY to 14.8% but came in 100bps/70bps below consensus/JPMe

Order book growth was healthy at 50% YY vs average of 48% in last 2 quarters.

Revenue growth was strong in Automotive (44%) while weak elsewhere – Industrial (down 4%) and Railways (down 18%)

Believe QQ Ebitda margin contraction came from a decrease in high margin ODM mix to 27% (vs 30% in 2QFY26).

Net working capital days increased to 139 days vs 116 in 1H

Two key things to watch out for on call will be

1) a potential cut to FY26 revenue guidance given 9M revenues are tracking below expectations

2) update on discounting of legacy receivables so as to bring down net working capital days.

Nomura on Nykaa:

Upgrade to Buy, Target Price Rs 305

3Q EBITDA ahead of estimates

Growth on track, margin improvement across BPC & Fashion to sustain

Structural margin levers in place

Stock trades at 4.7x FY27F EV/sales, which believe is attractive given strong 45% EBITDA CAGR & potential to sustain 25%+ growth post FY28F

CITI on Nykaa:

Sell, Target Price Rs 210

EBITDA beat expectations (+5% vs Citi) with margins at 8% (Citi: 7.6%/VA Consensus: 7.3%) on higher BPC gross margins, enabled by stellar growth in ‘House of Nykaa’ owned brands (+65% YoY).

Elevated marketing spends have delivered solid annual transacting customer growth (+4mn YoY in BPC) & BPC margins trajectory has improved in recent Qs

At >60x EV/EBITDA & >100x P/E on Sep’27E, valuations are expensive

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