Kaynes Technology India Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalisation of ₹46,361.40 crore, a debt-to-equity ratio of 0.13 and a return on equity (ROE) of 10.63%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview Of the Semiconductor Sector
The semiconductor sector is pivotal to modern technology, producing microchips that power devices like smartphones, computers and automobiles. This industry drives innovation, enabling advancements in artificial intelligence, 5G and the Internet of Things (IoT).
Global demand for semiconductors continues to surge, fueled by increasing digitalization and technological integration across sectors. Key challenges include supply chain disruptions, geopolitical tensions and the need for sustainable manufacturing practices to meet rising demands.
Financial Analysis of Kaynes Technology India Ltd
- Sales Growth: Sales witnessed a steady increase from ₹4,66,307 crore in March 2021 to ₹8,99,041 crore in March 2024, demonstrating a robust growth trajectory. This consistent rise underscores Reliance Industries’ strong market presence and operational efficiency.
- Expense Trends: Expenses grew in parallel with sales, increasing from ₹3,85,517 crore in March 2021 to ₹7,36,543 crore in March 2024. While indicative of expansion, managing rising costs will remain crucial to sustaining profitability.
- Operating Profit & Margins: Operating Profit improved significantly from ₹80,790 crore in March 2021 to ₹1,62,498 crore in March 2024. Operating Profit Margin (OPM) showed resilience, rising from 17% in March 2021 to 18% in March 2024, reflecting effective cost management and enhanced operational performance.
- Profitability Indicators: Net Profit rose from ₹53,739 crore in March 2021 to ₹79,020 crore in March 2024, with EPS increasing from ₹38.75 to ₹51.45 during the same period. The steady rise in profits and EPS signals stable returns to shareholders.
- Taxation & Dividend: Tax rates escalated from 3% in March 2021 to 25% in March 2024, reflecting changes in tax policies. Dividend payouts also increased from 9% to 10%, highlighting Reliance’s commitment to shareholder returns.
- Key Financial Metrics: Other Income and depreciation also saw notable changes, with Other Income fluctuating while depreciation rose consistently, aligning with the company’s expanding asset base. Profit before tax improved significantly from ₹55,461 crore to ₹1,04,727 crore over the same period.
| Metrics | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
| Sales | 899041 | 876396 | 694673 | 466307 |
| Expenses | 736543 | 734078 | 586092 | 385517 |
| Operating Profit | 162498 | 142318 | 108581 | 80790 |
| OPM % | 18% | 16% | 16% | 17% |
| Other Income | 16179 | 12020 | 19600 | 22432 |
| Interest | 23118 | 19571 | 14584 | 21189 |
| Depreciation | 50832 | 40303 | 29782 | 26572 |
| Profit before tax | 104727 | 94464 | 83815 | 55461 |
| Tax % | 25% | 22% | 19% | 3% |
| Net Profit | 79020 | 74088 | 67845 | 53739 |
| EPS in Rs | 51.45 | 49.29 | 44.87 | 38.75 |
| Dividend Payout % | 10% | 9% | 9% | 9% |
* Consolidated Figures in Rs. Crores
Kaynes Technology India Limited Company Metrics
Kaynes Technology India Ltd’s market capitalization is ₹48,294.21 crore. The close price of its stock is ₹7,544.7, and the P/E ratio stands at 263.49. The company has a Return on Capital Employed (ROCE) of 11.37% and a quarterly EPS of ₹9.38. Its Price Book (PB) ratio is 19.41, with a Debt-to-Equity ratio of 0.13. The Return on Equity (ROE) is 10.63%. Over six months, the stock has returned 89.26%, with a 1-month return of 17.30%.
Market Capitalization: Market Capitalization represents the total market value of Kaynes Technology India Ltd’s outstanding shares, amounting to ₹48,294.21 crore.
P/E Ratio: The Price-to-Earnings (P/E) ratio of 263.49 shows how much investors are willing to pay for ₹1 of Kaynes Technology India Ltd’s earnings.
ROCE (Return on Capital Employed): The ROCE of 11.37% measures the company’s efficiency in generating profits from its total capital employed.
EPS (Earnings Per Share): The quarterly EPS of ₹9.38 indicates the portion of the company’s profit allocated to each outstanding share.
PB Ratio: The Price-to-Book (PB) ratio of 19.41 indicates how the market values the company compared to its book value.
Debt-to-Equity Ratio: Kaynes Technology India Ltd has a debt-to-equity ratio of 0.13, showing a low level of debt relative to its equity.
Return on Equity (ROE): The ROE of 10.63% measures the profitability of Kaynes Technology India Ltd, revealing how effectively the company uses shareholders’ equity.
Stock Returns: Over the last six months, Kaynes Technology India Ltd’s stock has returned 89.26%, and its 1-month return is 17.30%.
Net Profit Margin: The 5-year average net profit margin of 5.79% indicates how efficiently the company converts revenue into profit.
Kaynes Technology Stock Performance
Kaynes Technology India Ltd delivered a return on investment of 5.26% in December 2023, 27.18% in May 2024 and 13.23% in September 2024, showcasing strong performance during specific months and significant growth potential across the year for investors.
| Month | Return (%) |
| Dec-23 | 5.26 |
| Jan-24 | 8.9 |
| Feb-24 | 2.27 |
| Mar-24 | -5.53 |
| Apr-24 | -6.51 |
| May-24 | 27.18 |
| Jun-24 | 8.35 |
| Jul-24 | 14.72 |
| Aug-24 | 7.04 |
| Sep-24 | 13.23 |
| Oct-24 | -0.29 |
| Nov-24 | 9.26 |
Kaynes Technology Shareholding Pattern
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Oct 2024 |
| Promoters | 50.66% | 50.41% | 50.31% | 50.24% |
| FIIs | 24.23% | 22.49% | 22.06% | 20.17% |
| DIIs | 14.23% | 16.06% | 16.98% | 18.24% |
| Government | 0.17% | 0.16% | 0.19% | 0.18% |
| Public | 10.71% | 10.89% | 10.46% | 11.18% |
| No. of Shareholders | 3327847 | 3639396 | 3463276 | 4290633 |
Kaynes Technology Partnerships and Acquisitions
Kaynes Technology India Ltd. has strategically expanded its global footprint through key acquisitions and partnerships. In December 2023, the company acquired Digicom Electronics Inc., a U.S.-based electronics manufacturing services firm, for $2.5 million, enhancing its presence in the American market.
In December 2024, Kaynes Technology’s subsidiary, Kaynes Holding Pte. Ltd., acquired a 54% stake in Sensonic GmbH, an Austrian company specializing in railway infrastructure monitoring solutions. This acquisition aims to bolster Kaynes’ capabilities in delivering advanced technological solutions for global infrastructure projects.
These strategic moves reflect Kaynes Technology’s commitment to broadening its service offerings and strengthening its position in the international electronics manufacturing and infrastructure technology sectors.
Kayne’s Technology Peer comparison
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Kaynes Tech | 7303.65 | 46751.23 | 250.58 | 7.34 | 11.22 | 87.88 | 166.22 | 0.00 |
| PG Electroplast | 918.95 | 26014.89 | 135.66 | 18.86 | 18.72 | 179.61 | 274.55 | 0.02 |
| Amber Enterp. | 6122.90 | 20709.79 | 111.46 | 6.74 | 10.18 | 49.02 | 100.65 | 0.00 |
| Genus Power | 389.35 | 11830.64 | 81.12 | 6.82 | 11.34 | 23.66 | 68.44 | 0.15 |
| Avalon Tech | 992.50 | 6565.22 | 227.96 | 4.75 | 6.22 | 80.14 | 80.00 | 0.00 |
| Hind Rectifiers | 1441.30 | 2473.66 | 81.45 | 14.67 | 15.92 | 114.02 | 161.13 | 0.08 |
| RIR Power Electr | 3068.65 | 2354.80 | 268.81 | 16.21 | 19.49 | 51.39 | 299.02 | 0.07 |
| Median: 15 Co. | 389.35 | 2018.23 | 81.45 | 6.78 | 10.7 | 49.02 | 80.0 | 0.0 |
Future of Kaynes Technology
The future of Kaynes Technology appears promising, driven by its focus on innovation, advanced manufacturing capabilities and the growing demand for electronics and semiconductors. With India’s push toward self-reliance in electronics manufacturing and favourable government policies, the company is well-positioned to capitalize on emerging opportunities.
Its expertise in design and engineering services, coupled with strategic partnerships, can fuel expansion into global markets. However, sustained growth will depend on navigating supply chain challenges, technological advancements and maintaining a competitive edge. By leveraging its strengths and addressing industry demands, Kaynes Technology is poised for significant growth in the evolving technology landscape.
How To Invest In Kaynes Technology Share?
To invest in Kaynes Technology shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Conduct a detailed analysis of Kaynes Technology’s financials, market trends and growth prospects. This will help you make informed decisions and understand the potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted stockbroker like Alice Blue, known for its user-friendly platform and competitive brokerage charges. Register with them to gain access to the stock market and trading tools.
- Fund Your Trading Account: Deposit sufficient funds into your trading account to purchase shares. Ensure you maintain an adequate balance for the number of shares you plan to buy, along with additional charges like brokerage fees.
- Place a Buy Order: Search for Kaynes Technology on the stockbroker’s platform. Place a buy order specifying the quantity and price range (market or limit order) to purchase shares when they match your criteria.
- Monitor Your Investment: After acquiring the shares, regularly track the company’s performance and market trends. Stay updated on news or developments affecting Kaynes Technology to make informed decisions about holding or selling.
Kaynes Technology – FAQs
The market capitalization of Kaynes Technology India Ltd stands at ₹46,361.40 crore. This value reflects the total market value of the company’s outstanding shares, indicating its size, investor confidence and overall position within the industry. It represents Kaynes Technology’s robust presence in the stock market.
Kaynes Technology is not the leader in the semiconductor industry but is a significant player with growing influence, especially in electronics manufacturing and design. While it demonstrates strong potential, global giants like Intel and TSMC dominate the semiconductor sector. Kaynes focuses on niche markets and emerging opportunities in India.
Kaynes Technology has strategically expanded its global presence through several key acquisitions:
Digicom Electronics Inc.: In January 2024, Kaynes acquired this Oakland, California-based electronics manufacturing services company for approximately $2.5 million, enhancing its capabilities in the U.S. market.
Iskraemeco India Pvt. Ltd.: In September 2024, Kaynes acquired this smart metering business from its Slovenian parent company for ₹42.98 crore, aiming to strengthen its position in the smart meter segment.
Sensonic GmbH: In December 2024, through its wholly-owned subsidiary, Kaynes Holding Pte. Ltd., Kaynes acquired a 54% stake in this Austrian company specializing in railway infrastructure monitoring solutions, integrating fibre optic sensing with AI and machine learning.
Kaynes Technology specializes in electronics design and manufacturing services, offering solutions from concept to production. It provides services in embedded design, PCB assembly and box-build manufacturing, catering to industries like automotive, aerospace and IoT. Its expertise supports innovation, enabling the efficient production of advanced electronics for diverse applications globally.
Kaynes Technology India Ltd. was founded in 1988 by Ramesh Kunhikannan, who serves as the Managing Director. His wife, Savitha Ramesh, joined the company in 1996 and currently holds the position of Chairperson. As of December 2024, Mr. Kunhikannan’s net worth is estimated at $3.1 billion, reflecting his significant stake in the company.
The main shareholders of Kaynes Technology are its promoters, holding a 50.24% stake as of October 2024, followed by Foreign Institutional Investors (FIIs) at 20.17%, Domestic Institutional Investors (DIIs) at 18.24% and the public with 11.18%.
Kaynes Technology operates in the Electronics Design and Manufacturing Services (EMS) industry, specializing in embedded design, PCB assembly and turnkey solutions. Serving sectors like automotive, aerospace, medical and IoT, the company integrates advanced technologies to deliver innovative electronics solutions, contributing to India’s growing electronics manufacturing ecosystem and global competitiveness.
Kaynes Technology’s order book has experienced significant growth throughout 2024. At the end of Q3 FY24, the order book stood at ₹37,890 million, increasing to ₹41,152 million by the end of Q4 FY24. By June 30, 2024, it further expanded to ₹50,386 million and as of September 30, 2024, it reached approximately ₹54,228 million. This consistent increase reflects robust demand across various industry verticals, enhancing revenue visibility for the company.
To invest in Kaynes Technology shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Determining whether Kaynes Technology is overvalued or undervalued depends on analyzing its price-to-earnings ratio, market capitalization, growth potential and industry benchmarks. If its valuation exceeds fundamentals or peer averages, it may be overvalued. Otherwise, strong growth prospects and undervalued metrics could indicate an investment opportunity.
The future of Kaynes Technology appears promising, driven by increasing demand for electronics manufacturing, India’s push for self-reliance and favourable government policies. With its expertise in design and innovation, the company is well-positioned to capitalize on emerging opportunities, expand its market presence and sustain growth in global and domestic markets.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
