The results season is in full swing in India. A majority of the companies have either met expectations or have exceeded expectations, leading to a gain in their share price. Amber Enterprises India and Kaynes Technology India were listed only in 2022 and their share price increased by almost 19% on Wednesday to hit a fresh 52-week high.
Kaynes Technology India Ltd
Shares of Kaynes Technology India gained 18.62% on Wednesday’s early trades to reach a fresh 52-week high of ₹ 1185.00 apiece on the National Stock Exchange (NSE). At 12:39 PM, its shares were trading 12.08% higher at ₹ 1119.60 apiece.
The company is engaged in end-to-end and Internet of Things (IoT) solutions that enable integrated electronics manufacturing. It provides OEM-Turnkey Solutions- Box Build, OEM Turnkey Solutions- Printed Circuit Board Assemblies, ODM, Product Engineering and IoT Solutions.
Kaynes Technology posted a 53% growth in its consolidated revenue to ₹ 364.6 crores for the January to March quarter of 2023 (Q4FY23), from ₹ 238.5 crores in the January to March quarter of 2022 (Q4FY22). It posted a net profit of ₹ 41.3 crores in Q4FY23, indicating an increase of 108% against ₹ 19.9 crores reported in Q4FY22.
For the entire year (FY 2022-23), the company’s consolidated revenue came in at ₹ 1126.1 crores, up 59% as compared to ₹ 706.2 crores in the previous year (FY 2021-22). Its profit increased to ₹ 95.2 crores in FY 2022-23, up 128% from ₹ 41.7 crores in FY 2021-22.
With a market capitalization of ₹ 5,808 crores, Kaynes Technology is a small-cap company. It has an ideal return on equity of 24.40% and an ideal debt-to-equity ratio of 0.98.
Amber Enterprises India Ltd
Shares of Amber Enterprises gained 18.05% on Wednesday’s early trades to reach a fresh 52-week high of ₹ 2222.00 apiece National Stock Exchange (NSE). At 12:54 PM, its shares were trading 10.50% higher at ₹ 2079.85 apiece.
The company is engaged in the manufacturing of consumer durable products. It is a solution provider for air conditioner original equipment manufacturer (OEM)/ Original Design Manufacturer (ODM) industry in India. It also manufactures components, other durables, automobiles, case liners, plastic extrusion sheets and sheet metal components for microwaves.
Amber Enterprises posted a 55% growth in its consolidated revenue to ₹ 3,002.61 crores in Q4FY23, from ₹1,936.69 crores in Q4FY22. It posted a net profit of ₹ 108.09 crores in Q4FY23, indicating an increase of 82.28% against ₹ 59.30 crores reported in Q4FY22.
For the entire year (FY 2022-23), the company’s consolidated revenue came in at ₹ 6,927.09 crores, up 64.68% as compared to ₹ 4206.39 crores in the previous year (FY 2021-22). Its profit increased to ₹ 163.77 crores in FY 2022-23, up 47.12% from ₹ 111.32 crores in FY 2021-22.
With a market capitalization of ₹ 6,342 crores, Amber Enterprises is a small-cap company. It has a low return on equity of 6.54% but an ideal debt-to-equity ratio of 0.75. Its shares were trading at a price-to-earnings ratio of 57.49 which is significantly higher than the industry P/E of 0.75, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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