The shares of the Semiconductor company specializes in electronics design and manufacturing services, offering solutions from concept to production, jumped upto 4 percent following the approval to acquire a 100 percent stake in August Electronics, a Canadian company.
With a market capitalization of Rs. 37,737.32 crores on Thursday, the shares of Kaynes Technology India Ltd jumped upto 2.3 percent, making a high of Rs. 5977.35 per share compared to its previous close of Rs. 5843.45 per share.
Kaynes Technology India Ltd, one of the leading end-to-end and IoT solutions-enabled integrated electronics manufacturing companies, has approved the execution of a Share Purchase Agreement (SPA) to acquire 100 percent of August Electronics Inc. through its subsidiaries, Kaynes Canada Ltd. and Kaynes Singapore.
This acquisition is valued at CAD 57 million, is aimed at purchasing shares from August Electronics Ltd’s current owners. The deal will not impact the management or control of Kaynes Technology. The company is also committed to paying the purchase price on behalf of Kaynes Canada if needed.
Capex Plans & Guidance
Kaynes Technology is set to invest Rs. 4,700 crores in upcoming projects over the next few years. Kaynes Technology is targeting revenue of Rs. 4,500 crores for the financial year 2026. The management is confident about keeping EBITDA margins above 15 percent for FY25. They expect improved profits as newly formed teams start playing a bigger role in boosting revenue growth.
Financials & others
The company’s revenue rose by 32.2 percent from Rs. 518.71 crore to Rs. 685.82 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 45.19 crore to Rs. 66.46 crore during the same period.
The company has a low debt-to-equity ratio of 0.27, showing strong financial stability. It has achieved an average 3-year revenue growth of 36.71 percent and net profit growth of 63.84 percent, indicating strong business performance.
In the first nine months of FY25, Kaynes Technology’s revenue came mainly from the industrial segment (including EV) at 55 percent, followed by automotive at 28 percent. Other contributions came from railways (7 percent), IoT/IT and others (6 percent), medical (2 percent), and aerospace, outer-space, and strategic electronics (1 percent).
Written by Sridhar J
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