India aims for $500 billion in electronics sector growth by the end of the decade, up from the present $150 billion. Following this, the demand for semiconductors in the country is forecasted to surpass $80 billion by 2026 and $110 billion by 2030.
The semiconductor industry is often described as the “brain” of modern-day technology. It is the unseen tech that empowers our digital lives, enabling everything from the devices in our pockets to the cars we drive and the entire infrastructure that this interconnected world has been built upon.
Listed below is a quick comparison of two emerging players in the semiconductor industry.
Company Overview
Kaynes Technology India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It is engaged in providing conceptual design, process engineering, integrated manufacturing, and life cycle support for major players across various industries. It has a strong order book of Rs. 5,422.8 Crores.
CG Power and Industrial Solutions Limited is engaged in providing end-to-end solutions to utilities, industries, and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services, and solutions in two main business segments, i.e., Power Systems and Industrial Systems. It has a strong order book of Rs. 5,1311 Crores.
Valuation
Coming to the valuations Kaynes Technology India Limited demands a P/E ratio of 171, compared to the industry P/E of 84.61, and CG Power and Industrial Solutions Limited demands a P/E ratio of 128.62 compared to its industry P/E of 66.44 due to the future potential of EMS and Semiconductor sector with the ongoing demand.
Semiconductor Plans
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.
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.
CG Power and Industrial Solutions Limited in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand will set up an Outsourced Semiconductor Assembly and Testing (OSAT) facility in Sanand, Gujarat, with an investment of Rs 7,600 crores.
Financials
Kaynes Technology India Limited’s revenue from operations grew by 59 percent from Rs. 361 Crores in Q2FY24 to Rs. 572 Crores in Q2FY25, accompanied by profits of Rs. 32 Crores to Rs. 60 Crores.
CG Power and Industrial Solutions Limited’s revenue from operations grew by 21 percent from Rs. 2,018.96 Crores in Q2FY24 to Rs. 2,441.79 Crores in Q2FY25, accompanied by profits of Rs. 242.2 Crores to Rs. 220.96 Crores.
Written by: Bharath K.S
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