Semiconductor stock which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer jumped upto 3 percent in the day’s trade following the completion of the acquisition of a controlling stake in a foreign-based Kavach Systems operating company.
Price Action
With a market capitalization of Rs. 39,666 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 6,196.90 per equity share, down 0.57 percent from its previous day’s close price of Rs. 6232.30.
What Happened
Kaynes Technology India Limited has announced the successful acquisition of a controlling 54 percent stake in Sensonic GmbH, Austria through its wholly owned subsidiary Kaynes Holding Pte. Ltd.
Sensonic GmbH specializes in delivering cutting-edge capabilities in railway safety and efficiency through its applications such as track condition monitoring, landslide detection, and security enhancements powered by artificial intelligence and machine learning.
This acquisition further underscores Kaynes Technology’s commitment to advancing smart, sustainable solutions in infrastructure monitoring and management and expanding its presence in global infrastructure technology markets.
With this acquisition, the combined expertise of Kaynes Technology and Sensonic promises to deliver superior technological solutions to customers worldwide by integrating Sensonic’s advanced fiber optic sensing technologies with Kaynes Technology’s proven track record in manufacturing excellence and IoT innovation.
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. 5,422.88 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 defense, outer space, nuclear, medical, railways, loT, information technology, and other segments.
Semiconductor Business
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.
Financials & Ratios
Its 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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