Kaynes Technologies Doubles Investors’ Money, thriving with Strong CAPEX

Indian benchmark indices are trading in red and the NSE benchmark Nifty50 has slipped below the 18,600 mark. 

However, the broader markets are witnessing buying interest and the testament is the fact that have been outperforming the frontline indices on Wednesday with Nifty Midcap and Smallcap advancing 0.09% and 0.35%, respectively. With the outperformance of broader markets, market participants should keep a close eye on stocks from this segment and one stock which has caught investors’ fancy on Wednesday is Kaynes Technologies Ltd. 

Kaynes Technologies Ltd has surged nearly 4% to mark a fresh all-time high of Rs 1430.70. The stock made its debut on bourses in November last year, the stock saw a robust listing at Rs 778 on NSE as against an issue price of Rs 587. The stock had closed at Rs 689.95 on the listing day and stock made a low of Rs 666.80 as on December 26, 2022, but thereafter the fortune of the stock changed and it entered into an unprecedented uptrend and from the lows of December the stock has almost doubled. 

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. 

The company is among the first companies in India to offer design-led electronics manufacturing to original equipment manufacturers (“OEMs”). The company’s operations are classified under the following business verticals: OEM – Turnkey Solutions – Box Build (“OEM – Box Build”). 

In Q4FY23, the company’s consolidated revenue from operation jumped 53% YoY to Rs 365 crore, while the net profit more than doubled to Rs 41 crore. The company has allocated Rs 98.9 crore towards CAPEX expansion and upgrade of their facilities in Mysore, Manesar and Bengaluru and Chennai. Furthermore, the company has acquired 1,20,000 square feet of built-up space in Manesar which is expected to be operationalized in the Q1 of this year. What’s fascinating is the fact that the company has year marked Rs 149.3 crore for investments into Kaynes Electronics Manufacturing Private Limited for setting up a new facility in Chamarajanagar Karnataka whose first phase is to be operationalized by Q2 of this year. 

India is now positioned as a global hub for electronic system design and manufacturing and the company is rightly placed to capitalize on this opportunity.