Kaynes Technology has given 600% returns in 3 years

Overview

Incorporated in 2008, Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company in India. It provides conceptual design, process engineering, integrated manufacturing, and life-cycle support across various sectors, including automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, IoT, and IT.

Business Verticals

Kaynes operates across four business verticals:

·         OEM Turnkey Box Build (39%)

·         OEM Turnkey Solutions - PCBAs (56%)

·         Original Design Manufacturing (2%)

·         Product Design & Engineering (3%)

Revenue Mix

For 9M FY24, revenue distribution includes:

·         Industrial (44%)

·         Automotive (31%)

·         Railways (11%)

·         Medical (3%)

·         Consumer (8.37%)

·         Aerospace/Defence (2%)

·         IoT/IT (7%)

About 85% of revenue came from India in FY23.

Order Book

The company’s order book stood at Rs 3,789 Cr as of January 2024, showing growth from Rs 3,000 Cr in June 2023.

Customer Base

Kaynes serves major clients like Siemens, Hitachi, and Frauscher in Railways, and Agappe and Beat O in the Medical sector.

Manufacturing Facilities

It operates 14 facilities across Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand, featuring advanced capabilities including SMT lines, THD lines, and plastic molding machines.

Expansion Plans

Plans include a new facility in Karnataka, OSAT and PCB facilities in Telangana and Mysore, with investments of INR 2,800 Cr and INR 3,750 Cr, respectively.

Collaborations

Partnerships include Aptos Technology for semiconductor packaging and DigiLens Inc for waveguide manufacturing.

Acquisition

In December 2023, Kaynes acquired Digicom Electronics Inc., USA, for USD 2.5 million.

Fund Raising

The company raised Rs 1,400 Cr through a QIP in December 2023.

Focus Areas

Kaynes is focusing on product diversification and emerging segments like EVs and high-performance computing hardware.

 

Financial Performance:-

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	TTM
Sales	369	353	360	393	671	1,086	1,274	1,475
Operating Profit	37	36	41	38	92	166	173	215
OPM %	10%	10%	11%	10%	14%	15%	14%	15%

 

You can see from financial performance that revenue from operations has been increased from Rs.369 crores to Rs.1475 crores i.e. revenue has been increased by 4 times and profitability has been increased from Rs.37 crores to Rs.215 crore over the period of 6 years. Profits of the company has been increased by 6 folds in 6 years.

 

Stock performance:-

Margins has been also improved considerably in these years. Same is also reflected in stock performance. Stock has given returns of 660% in past 3 years. On 25^th Nov’ 2022 stock trading at Rs.745.15 per share and as on today i.e. 24.01.2025 stock is trading at Rs.5686 per share. Company stock even touched high of Rs.7822 per share.