Synopsis:
Kaynes Technology India fell sharply today after a major shareholder lock-in expired today freeing up almost 20% of the company’s outstanding equity.
The shares of this leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company are in focus after a major lock-in ended today. In this article, we will dive more into the details.
With a market capitalisation of Rs 39,614 crore, the shares of Kaynes Technology India Ltd made a day low of Rs 5,879.95 per share, down 6 percent from its previous day’s closing price of Rs 6,242.75 per share. In the last one year, the stock has delivered a poor return of 6 percent, underperforming NIFTY 50’s return of 10 percent.
About the Fall
Kaynes Technology fell sharply after its shareholder lock-in period came to an end.. As per Nuvama Alternative & Quantitative Research, about 1.16 crore shares, which represent 20 percent of the total equity of the company, have been released for trading after the end of the one-and-a-half-year lock-in period.
However, it is not noted that the entire block of shares will be available for sale on the market at the same time. It only indicates that shareholders are now permitted to trade their shares if that is their intention. The actual selling will thus be determined by the mood of the investors and the state of the market.
Q2 Highlights
Kaynes Technology India reported a core revenue of Rs 906 crore in Q2 FY26, a growth of 58 percent as compared to Rs 572 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 35 percent from Rs 673 crore.
Regarding its profitability, it reported a net profit of Rs 121 crore in Q2 FY26, a staggering growth of 102 percent as compared to Rs 60 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it recorded a growth of 61 percent from Rs 75 crore.
The stock delivered a poor ROE and ROCE of 10.74 percent and 14.28 percent respectively, and is currently trading at a very high P/E of 105x as compared to its industry average of 35x.
Kaynes Technology India is a leading end-to-end electronics manufacturing and IoT solutions provider, serving industries like automotive, aerospace, healthcare, and industrial automation. With strong design, manufacturing, and R&D capabilities, it focuses on innovation, global expansion, and advanced technologies such as OSAT (Outsourced Semiconductor Assembly and Test), smart devices, and embedded systems to drive sustainable growth.
Kaynes Tech estimates that its OSAT business to be the primary growth source of the company with a top-line opportunity of Rs 1,000 crore by FY27 and states that 60 percent of the OSAT capacity is already reserved for clients. Additionally, the company has mentioned that the margins in the OSAT business will be far higher than those in the existing business of the company, whereas the overall EBITDA margin is anticipated to be around 16 percent in FY26.
Written by Satyajeet Mukherjee
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