Rs 5,038.60 Crore Order Book: Electronics manufacturer acquired 100 per cent stake in Iskraemeco India Pvt Ltd to expand into smart meter business

The stock gave multibagger returns of 140 per cent in just 1 year whereas BSE Sensex Index is up by 28 per cent

On Tuesday, shares of Kaynes Technology India Ltd gained 3.54 per cent to an intraday high of Rs 5,621.05 per share from its previous closing of Rs 5,428.80. At the closing bell, shares of the company were trading at Rs 5,460 per share, up 0.57 per cent with a 1.18 times spurt in volume.  

Kaynes Technology India Limited has announced its plans to acquire 100 per cent of the share capital of Iskraemeco India Private Limited, a company engaged in the business of smart meter solutions and services. This acquisition aligns with Kaynes' strategy to expand its product line and service offerings, providing customers with comprehensive solutions in smart metering.

The acquisition is expected to be completed within 30 days from the execution of the Share Purchase Agreement. The total consideration for the acquisition is Rs 42,98,59,750, which will be paid in cash. Post-acquisition, Iskraemeco India Private Limited will become a wholly-owned subsidiary of Kaynes Technology India Limited. The acquisition of Iskraemeco India Private Limited is expected to strengthen Kaynes' position in the Indian market and provide it with access to new customers and business opportunities. It will also enable Kaynes to leverage Iskraemeco's expertise in smart meter solutions and services to offer more comprehensive solutions to its customers.

Additionally, Kaynes Technology India Limited announced that the Union Cabinet has approved the establishment of a semiconductor unit by its subsidiary in Sanand, Gujarat. The unit will be constructed with an estimated investment of Rs 3,307 crore and can produce 60 lakh chips per day. This development is expected to boost India's domestic semiconductor manufacturing capabilities and reduce reliance on imports.

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.

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 34,000 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 140 per cent in just 1 year whereas BSE Sensex Index is up by 28 per cent. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.