Semiconductor stock with strong growth guidance and capex worth ₹4,800 Cr to keep on your radarSemiconductor stock with strong growth guidance and capex worth ₹4,800 Cr to keep on your radar

Introduction:

This semiconductor stock is set for strong growth, with a ₹4,800 Cr capex plan to drive expansion. Significant government support is expected to ease cash outflows. The company focuses on scaling operations and capturing emerging opportunities.

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About Kaynes Technology India Ltd

Kaynes Technology India Ltd is a leading electronics manufacturing services provider specialising in end-to-end design and production. Known for its innovation and quality, the company focuses on expanding in semiconductor and high-tech electronics segments.

Share price movement: 

On February 21, Kaynes Technology India Ltd (BSE: KAYNES) opened at ₹4,228.10, reached a high of ₹4,490.00, and a low of ₹4,205.40. The stock closed at ₹4,366.85, up 3.79%, with a market capitalisation of ₹27,952.54 crore.

Future guidance

The company targets ₹4,500 crores in revenue for FY26, with operating margins exceeding 15%. A ₹4,800 crore capex is planned, supported by government subsidies. Expansion efforts focus on geographical growth and strengthening ODM capabilities.

The order book grew from ₹54,228 million in Q2 FY25 to ₹60,471 million in Q3 FY25. Monthly order inflows rose to ₹4,285 million, reflecting strong demand. Key sectors driving growth include industrial, EV, aerospace, medical, and automotive.

The integration of Iskraemeco India is progressing smoothly, with its Hyderabad smart meter factory in series production. Strategic investments and acquisitions aim to enhance manufacturing capabilities, reinforcing long-term growth.

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Performance update: 

The company reported ₹17,373 million in revenue for the first three-quarters of FY25, marking 49% YoY growth. Q3 FY25 revenue stood at ₹6,612 million, up 30% YoY. Operational EBITDA for Q3 reached ₹940 million, with a 14.2% margin, improving by 50 bps.

PAT for Q3 FY25 was ₹665 million, with a 10.1% margin, rising 120 bps YoY. Management expects over 55% YoY revenue growth for FY25, supported by strong demand. Profitability is set to expand further, driven by operational efficiency and market opportunities.

Shareholding pattern of Kaynes Technology India Ltd: 

All values in %	Sep 2024	Jun 2024	Mar 2024
Promoter	57.8	57.8	57.8
FII	14.8	14.9	14.3
DII	15.0	16.1	17.9
Public	12.4	11.3	10.0

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.