Shares of this multibagger stock under the ‘small-cap’ category gained 7 percent after entering into an MoU with the Government of Karnataka.
With a market capitalization of Rs 11,563.67 crores, the stocks of Kaynes Technology India Limited opened their trading hour on Friday at Rs 1,958.95 and currently trade at Rs 1,988.85.
The company’s scrip witnessed an intra-day high, also recorded as the new 52-week high price, of Rs 2,122.85 exhibiting a gain of more than 10 percent compared to the previous close of Rs 1,859.20.
Such stock price movements were observed after the company, in a regulatory filing with the Bombay Stock Exchange (BSE) dated 24th August 2023, intimated about the Memorandum of Understanding (MoU) it signed with the Government of Karnataka worth Rs 3,750 crores.
As per the deal signed, Kaynes Technology India will set up Semiconductor Assembly and Testing (OSAT) facilities and Printed Circuit Board (PCB) manufacturing plant through its step-down subsidiaries.
Keeping a time horizon of six months, the company’s stock has proven to deliver multibagger returns of 127 percent. The same means that if someone had invested Rs 1 Lakh into the company’s stock, it would have converted to Rs 2.27 Lakhs within a period of just six months.
During the recent quarters, the company reported a dip in its prime indicators such as the operating revenues and after-tax profits with the former moving down from Rs 364.59 crores during Q4FY22-23 to Rs 297.18 crores during Q1FY23-24, and, the latter reducing from Rs 41.28 crores to Rs 24.65 crores keeping the timeframe the same.
According to the shareholding data available for the quarter ended June 2023, the company’s Promoters hold a 63.57 percent stake, and the Foreign Institutional Investors (FIIs) hold a 7.96 percent stake in the company.
Kaynes Technology India Limited is an electronics manufacturing company providing design, integrated manufacturing, and life-cycle support for companies associated with automotive, aerospace & defence, and many other industries.
Written by Amit Madnani
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