Shares of this multibagger stock under the ‘small-cap’ category jumped around 6 percent in Tuesday’s trading session after the company acquired a 100 percent stake in an electronic manufacturer based in the United States. Year-to-date, the company’s stock has delivered multibagger returns of a whopping 270 percent.
With a market capitalization of Rs 15,930.75 crores, the stocks of Kaynes Technology India Limited opened their trading hour on Tuesday at Rs 2,657.90 and currently trade at Rs 2,750, gaining approximately 6 percent compared to the previous closing levels of Rs 2,603.95 apiece.
Such bullish stock price movements were observed after the company, through a regulatory filing with the BSE, announced that the Board of Directors (BOD), in a meeting held on 18th December 2023, considered and approved the acquisition of a 100 percent stake in “Digicom Electronics Inc”, a US-based Electronics Manufacturing Services (EMS) provider.
The acquisition will take place against a cash consideration of USD 2.5 million, and the same is estimated to be executed before the conclusion of Q4FY23-24. The acquisition is taking place for the main purpose of expanding its operations in the United States.
The target company’s turnover for the last three financial years, following a calendar year, stands at USD 6.59 million for FY20, USD 6.15 million for FY21, and USD 7.78 million for FY22.
During the recent financial quarters, the company has been successful in increasing its basic business parameters 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 period, rose from Rs 24 crores to Rs 32 crores.
As per the recent presentations of the company, the revenue mix across various business verticals shows a concentration towards the “Industrial & EV” as well as the “Automotive” segment. In addition, the company’s “Medical” segment portrays a compounded annual growth of 41 percent for FY22-FY27.
Kaynes Technology India Limited is an integrated electronics manufacturing company providing process engineering, conceptual design, and life-cycle support for players in the automotive, aerospace & defense, industrial, nuclear, railways, IT, and other segments.
Written by Amit Madnani
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