Semiconductor stock which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer jumped 9 percent in the day’s trade upon receiving government approval to set up a semiconductor factory with an investment of Rs. 3,307 Crores.
Price Action
With a market capitalization of Rs. 30,998 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 4,822.75 per equity share, up 4 percent from its previous day’s close price of Rs. 4,656.95.
Approval for Semiconductor Factory
Kaynes Technology India Limited’s wholly-owned subsidiary Kaynes Semicon Private Limited’s proposal to set up a semiconductor unit at Sanand, Gujarat with an estimated investment of Rs 3,307 Crores was approved by the Union Cabinet on September 2, 2024.
The proposed semiconductor unit will be set up, and its capacity will be to Assemble, Test, Mark, and pack 60 Lakh chips per day. The chips produced in this unit will cater to a wide variety of applications, including industrial, automotive, electric vehicles, consumer electronics, information technology, telecom, mobile phones, and many others.
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In addition, Kaynes Technologies India Limited is also investing Rs. 2,800 Crores to set up a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility at Kongara Kalan near Hyderabad.
About the Company
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It has a strong customer base with major players like Hitachi, Siemens, Tonbo Imaging, and many more. As of Q1FY25, it has a strong order book of Rs. 5,038 Crores.
It offers Solutions for Box Build, Printed Circuit Board Assemblies (PCBAs), ODM, Product Engineering, loT Solutions, smart metering technology, smart street lighting, and inverter technology. It also offers conceptual design and product engineering services.
Kaynes Technologies India Limited offers its products and services to major players in the automotive, industrial, nuclear, medical, railway, aerospace and defense, outer space, nuclear, medical, railways, loT, information technology, and other segments.
Recently Kaynes Holding Pte. Ltd a wholly-owned subsidiary of Kaynes Technology India Limited has executed a joint venture agreement with Sensonic GmbH and other existing shareholders of Sensonic Austria, for the proposed subscription of shares and acquisition of a 54 percent stake by Kaynes Singapore in Sensonic Austria, to expand its portfolio catering to railway sector.
Sensonic Austria is engaged in the development, manufacture, sale, and operation of Distributed Acoustic Sensing (“DAS”) for the rail industry and is in the business of providing information-as-a-service (IAAS) solutions for railway monitoring applications.
Financials & Ratios
Its Revenue from operations grew by 70 percent from Rs. 297 Crores in Q1FY24 to Rs. 504 Crores in Q1FY25, accompanied by profits of Rs. 25 Crores to Rs. 51 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 10.5 percent, and a return on capital employed (ROCE) of 14.5 percent. It has reported a debt-to-equity ratio of 0.13.
Written by: Bharath K.S
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