Shares of this multibagger stock under the ‘mid-cap’ category jumped around 3 percent in Monday’s trading session after the company acquired 4.44 million shares of a US-based semiconductor startup for $3 Million.
With a market capitalization of Rs 17,679.10 crores, the stocks of Kaynes Technology India Limited started their trading session on Monday at Rs 2,785.70 and currently trade at Rs 2,811, gaining approximately 3 percent compared to the previous close of Rs 2,731.05 apiece.
Such stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has acquired around 4.44 million equity shares of “Mixx Technologies Inc.”, a Deeptech Semiconductor startup based in the United States, for a consideration of USD 3 million.
The main objective of the acquisition is to establish Kaynes Technology India Limited as a “silicon to systems” manufacturer for artificial intelligence as well as high-performance computing infrastructure.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 260 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.60 lakhs.
During the recent financial quarters, the company, on a consolidated basis, reported an increase in both business indicators such as operating revenues and net profits. The former shifted from Rs 297 crores during Q1FY23-24 to Rs 360 crores during Q2FY23-24, and the latter during the same horizon, moved from Rs 24 crores to Rs 32 crores.
In addition, the company’s profitability ratios, such as the return equity (RoE) as well as return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 9.90 percent and the latter at 16.04 percent.
As per the recent presentations, the company’s revenue is derived from a wide range of business verticals, the top ones being Automotive (38 percent), Industrial (incl EV) (27 percent), IoT / IT, Cons and Others (14 percent).
Kaynes Technology India Limited is an integrated electronics manufacturing company providing design, process engineering, integrated manufacturing, and life-cycle support. The company serves various players in segments such as automotive, industrial, aerospace and defense, nuclear, medical, railways, etc.
Written by Amit Madnani
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