A company of a ‘fundamentally strong’ nature showcases a specific set of characteristics such as strong & consistent financials, low leverage ratios, and many more.
Listed below is one such fundamentally strong stock associated with the ‘semiconductor’ industry in which Foreign Institutional Investors (FIIs) increased their stake in Q3FY23-24, i.e., during the quarter ended December 2023:
Kaynes Technology India Limited
With a market capitalization of Rs 17,417.67 crores, the stocks of Kaynes Technology India Limited are currently trading at Rs 2,725, gaining around 2 percent as compared to the previous close of Rs 2,674.25 apiece.
The latest shareholding pattern data, as per the quarter ended December 2023, portrays the Foreign Institutional Investors (FIIs) increasing their stake in the December 2023 quarter by 2.81 percent, i.e., from holdings of 9.9 percent during Q2FY24 to holdings of 12.71 percent during Q3FY24.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of approximately 240 percent to its stakeholders. The same means that if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.40 lakhs.
Having a look at the financial statements of the company, the basic business parameters such as operating revenues and after-tax profits have shown positive movements with the former increasing from Rs 297 crores during Q1FY24 to Rs 360 crores during Q2FY24, and the latter, during the same period, rising from Rs 24 crores to Rs 32 crores.
In addition, the consolidated margins and return ratios were reported at decent numbers during FY22-23 with the net profit margin (NPM) reported at 8.45 percent, return on equity (RoE) at 9.90 percent, and the return on capital employed (RoCE) at 16.04 percent.
As per the recent presentations, the company provided a compounded annual growth rate (CAGR) for its business segments for FY22-FY27 with 30% for Automotive, 22% for Industrial, 21% for Telecom, 38% for A&D, 41% for Medical, and 33% for the other segments.
Kaynes Technology India Limited is an integrated electronics manufacturing company that provides process engineering, conceptual design, integrated manufacturing, and life-cycle support for various players associated with the automotive, industrial, aerospace and defense, railways, IoT, IT, and other segments.
Written by Amit Madnani
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