17 May , 2024 By : Debdeep Gupta
Kaynes Technology skyrocketed over 16 percent to Rs 2,989 per share on May 17 after the company reported an upbeat January-March quarter (Q4FY24) performance.
So far in 2024, shares of Kaynes Tech surged over 10 percent, outperforming the Nifty 50 index, which saw a rise of 2 percent. Earlier, the stock hit a 52-week high of Rs 3,248 per share on March 5, 2024.
Kaynes Tech's consolidated net profit jumped 96.8 percent year-on-year (YoY) to Rs 813 crore in Q4FY24, while revenue from operations increased 74.8 percent YoY to Rs 637.3 crore.
The growth was led by strong demand across all verticals, especially industrial & EV, aerospace, outer-space, and strategic electronics and railways segment.
The company's EBITDA grew 60.5 percent YoY to Rs 952 crore in Q4FY24, but EBITDA margin contracted by 134 basis points (bps) to 15 percent. Its order book stood at Rs 4,115 crore in FY24 as against Rs 2,648 crore in FY23.
"Kaynes continues to invest in new initiatives & executing projects in newer high potential segments. These strategic initiatives are poised to strengthen the company's competitive edge and make Kaynes an integrated EMS company," said Ramesh Kunhikannan, managing director & promoter, Kaynes Technology India.
Earlier, analysts at Anand Rathi shared a 'buy' rating on the counter, with a target price of Rs 3,100 per share. They see strong growth outlook for the company amid development of a chips ecosystem in India, capacity expansion on strong order book visibility, increasing presence in domestic market, backward integration, and more export opportunities.
Kaynes Tech is an end-to-end IoT solutions-enabled integrated electronics manufacturer in India. The company has capabilities across entire spectrum of electronics system development and maintenance services. With over 3 decades of experience, their clientele include Agappe Diagnostics, Canyon Aero, Hitachi Rail, Siemens Rail, among others.
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