This semiconductor stock engaged in integrated electronics manufacturing and specializing in IoT solutions, product design, engineering, and OEM/ODM services, crashed 10 percent after receiving a Show-Cause Notice from SEBI to the MD, Mr. Ramesh Kunhikannan.
Stock price movement:
With a market capitalization of Rs. 27,130.64 crores, the share of Kaynes Technology India Limited has reached an intraday low of Rs. 3,893.85 per equity share, down nearly around 9.57 percent from its previous day’s close price of Rs. 4,305.70.
Since then, the stock has retreated and is currently trading at Rs. 4240.60 per equity share. The stock is down by 45.80 percent from the 52-week high of Rs. 7,824.95 compared to the current price.
What Happened:
Kaynes Technology India Limited has informed that its Managing Director, Mr. Ramesh Kunhikannan, received a Show-Cause Notice from SEBI on March 10, 2025. The notice points to possible violations related to maintaining the Structured Digital Database (SDD) concerning the company’s financial results for the period ending March 31, 2023. This is linked to SEBI’s insider trading regulations. The company is reviewing the notice and will respond accordingly while ensuring full cooperation with SEBI to resolve the matter.
Management Guidance:
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.
Capex Plans:
Kaynes Technology is set to invest Rs. 4,800 crores in upcoming projects over the next few years. This includes Rs. 2,800 crores for building a semiconductor OSAT and compound semiconductor facility in Kongara Kalan, near Hyderabad. Additionally, its fully-owned subsidiary will establish a semiconductor manufacturing unit in Sanand, Gujarat, with an expected investment of Rs. 3,307 crores by September 2024.
Semiconductor Segment:
Kaynes Technology is expanding its semiconductor business by setting up a new manufacturing facility that will focus on advanced packaging technologies to improve profit margins. The company aims to achieve Rs. 4,000 crore in revenue from its Gujarat semiconductor unit by FY 2029-30. By utilizing its EMS expertise and strategic partnerships, Kaynes plans to tap into India’s growing semiconductor market and boost its growth.
Order Book:
Kaynes Technology is experiencing strong business growth, with its order book increasing from Rs. 5,422.8 crores at the end of Q2 FY25 to Rs. 6,047.1 crores by the end of Q3 FY25. This notable rise highlights growing demand and a solid lineup of upcoming projects.
Financial Highlights:
Kaynes Technology India Limited reported a strong financial performance, with revenue rising from Rs. 509 crore in Q3 FY24 to Rs. 661 crore in Q3 FY25, marking a 29.86 percent growth. The company’s net profit also saw a significant increase of 46.67 percent, climbing from Rs. 45 crore in Q3 FY24 to Rs. 66 crore in Q3 FY25.
Written By – Nikhil Naik
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