Semiconductor stock which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in focus following revenue guidance of Rs. 9,000 Crores and capex of Rs. 4,800 Crores.
Price Action
With a market capitalization of Rs. 45,217 Crores, the shares of Kaynes Technology India Limited closed at Rs. 7,063.95 per equity share, up 0.32 percent from its previous day’s close price of Rs. 7,041.70.
What Happened
The Whole Time Director and CFO of Kaynes Technology India Limited an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer, has recently given future insights and expectations regarding the future of the company.
It involves revenue guidance for FY28 of Rs. 9,000 Crores which includes deriving Rs. 7,000 Crores from Electronics manufacturing services and 7-7.5 percent of the total sales will be invested in the EMS business.
It was followed by an allocation of Rs. 3,400 Crores for capacity expansion plans for the Semicon business and Rs. 1,400 Crores for PCBs. It is also almost close to closing a business deal with an advanced packaging client.
From FY 26 onwards, the management has said that we can see some significant increase in exports, aided by, of course, some revenues in the fourth quarter from both OSAT revenues as well as HDI, high-density interconnection, and also, there are areas like instrumentation and other areas in the U.S. that we are working with.
About the Company
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.
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 defence, outer space, nuclear, medical, railways, loT, information technology, and other segments.
Upcoming/ongoing Plans for Semiconductor & Others
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.
It has secured government approval for our HDI PC project, and PC board project in Chennai, and it will shortly be sharing updates on that as well. Both projects will start yielding significant revenues from the fourth quarter of FY26.
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.
In terms of Return ratios, it has reported a return on equity (ROE) of 9.13 percent, and a return on capital employed (ROCE) of 11.66 percent. It has reported a debt-to-equity ratio of 0.27.
Written by: Bharath K.S
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