Rs 5,038.60 Crore Order Book & Company to set up a semiconductor unit at Sanand, Gujarat: Multibagger stock jumps over 14 per cent with heavy volume!
The stock gave multibagger returns of 145 per cent in just 1 year whereas BSE Sensex Index is up by 23.5 per cent.
On Thursday, shares of Kaynes Technology India Ltd gained 14.22 per cent to an intraday high of Rs 5,322.60 per share from its previous closing of Rs 4,659.80. At the closing bell, shares of the company were trading at Rs 5,164.45 per share, up 10.83 per cent with a spurt in volume by more than 3.89 times on BSE.
Kaynes Technology India Limited announced that the Union Cabinet has approved the establishment of a semiconductor unit by its subsidiary, Kaynes Semicon Private Limited, in Sanand, Gujarat. This significant development marks a major step forward in India's efforts to build a self-reliant semiconductor ecosystem.
The proposed unit will be constructed with an estimated investment of Rs 3,307 crore and will have the capacity to produce 60 lakh chips per day. These chips will cater to a wide range of applications, including industrial, automotive, electric vehicles, consumer electronics, information technology, telecom, and mobile phones. The unit's establishment is expected to boost India's domestic semiconductor manufacturing capabilities and reduce reliance on imports. This approval aligns with the government's ambitious Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which aims to create a vibrant semiconductor ecosystem and promote self-sufficiency in this critical technology.
About Kaynes Technology India Limited
Kaynes Technology, a seasoned Indian ESDM player with over three decades of expertise, offers comprehensive electronics solutions from conceptualization to lifecycle support. Serving diverse sectors including automotive, industrial, aerospace, outer space, strategic electronics, medical, railways, IoT, and IT, the company boasts eight advanced manufacturing facilities capable of producing high-mix, high-value products flexibly. Complementing its manufacturing prowess, Kaynes operates service centres in Cochin and Mumbai, catering to railway, aerospace, defence and industrial clients.
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Quarterly Results: The net sales increased by 70 per cent to Rs 504 crore, the operating profit increased by 66 per cent to Rs 66.9 crore and the net profit skyrocketed by 106 per cent to Rs 50.8 crore in Q1FY25 compared to Q1FY24.
Order Book: The company's order book surged 22 per cent sequentially to Rs 5,038.60 crore in the first quarter of the financial year 2025, from Rs 4,115.20 crore in the preceding quarter. This robust growth was driven by strong demand across all business segments, with particularly impressive performance in the industrial & EV, aerospace, outer-space & strategic electronics and railways sectors.
The company has a market cap of over Rs 33,000 crore and the current debt of the company is Rs 323 crore. In June 2024, FIIs increased their stake to 14.27 per cent compared to 14.19 per cent in March 2024. The stock gave multibagger returns of 145 per cent in just 1 year whereas BSE Sensex Index is up by 23.5 per cent. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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