Kaynes Tech zooms 14% on robust Q4; stock more-than-doubles in one year

Kaynes Tech stock rises: Shares of Kaynes Technology India Ltd on Friday surged as much as 16.07 per cent to hit an intraday high of Rs 2,989.95 per share.

The surge came after the company announced a strong set of numbers. Notably, the stock has zoomed almost 339 per cent from its listing price of Rs 578, and 121 per cent in the last one year.

In the March quarter of financial year 2024 (Q4FY24), Kaynes Tech’s consolidated net profit soared 96.8 per cent to Rs 813 crore, from Rs 413 crore posted in the same quarter last year (Q4FY23).

Its revenue from operations climbed 74.8 per cent Y-o-Y to Rs 637.3 crore in Q4 FY24. “Kaynes achieved an impressive 60.3 per cent revenue growth in FY24, driven by robust demand across all verticals, more notably in the Industrial & EV, Aerospace, Outerspace & Strategic Electronics and Railways verticals,” said Ramesh Kunhikannan, managing director & promoter, Kaynes Technology India.

Kaynes Tech’s earnings before interest, taxes, depreciation and amortisation (Ebitda) rose over 60 per cent to Rs 95 crore in the March quarter of FY24, from Rs 59 crore in the same quarter a year ago. Margin, however, squeezed to 14.9 per cent during the same period.

The company's order book soared to Rs 4,115.2 crore in FY24, as compared to Rs 2,648.2 crore in FY23.

“The working capital cycle has reduced to 83 days in FY24 from 99 days in FY23. This is in line with our commitment and consistent efforts to optimise the working capital cycle. 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. Many new initiatives are in the planning stage to support this strategy. We continue to expand capabilities across verticals with clear focus on the outlined strategy of continuous expansion of customer base with focus on large accounts with growing share of value-added services,” said Kunhikannan.

Kaynes Technology India (KTI) is an end-to-end and Internet of Things (IoT) solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (ESDM) services.

At 11:35 AM, shares of Kaynes Tech were trading nearly 13 per cent higher at  Rs 2.910.50 per share. By comparison, S&P BSE Sensex was up 0.34 per cent at 73,915.84 levels.