Stock of this industrial products company has zoomed 293% so far in 2023

Shares of Kaynes Technology India hit a new high of Rs 2,954.20 on rallying 16 per cent on the BSE in Monday's intra-day trade

Shares of Kaynes Technology India rallied 16 per cent on the BSE to hit a new high of Rs 2,954.20 in Monday’s intra-day trade after the company joined hands with the Telangana government to set up a outsourced semiconductor assembly and testing (OSAT) and compound semiconductor manufacturing facility in the state. 

In an exchange filing, the company said the proposed facility by Kaynes will entail an investment of Rs 2,800 crore and will create direct employment for over 2,000 people.

The facility will come up in Kongara Kalan, adjacent to the upcoming electronics manufacturing facility of Foxconn.

Kaynes is venturing into OSAT/ ATMP services through its subsidiary Kaynes Semicon. Kaynes Semicon is also setting up a state-of-the-art R&D center for package research in collaboration with IIT Bombay.

Earlier, in the month of August, Kaynes had signed agreement with the Karnataka government to infuse an investment of Rs 3,750 crore. Kaynes will setup OSAT facility and Printed Circuit Board (PCB) manufacturing plant through its step down subsidiaries in the state.

Meanwhile, so far in the calendar year 2023, the stock price of Kaynes Technologies has zoomed 293 per cent, as compared to 7.5 per cent rise in the S&P BSE Sensex.

The company made its market debut on November 22, 2022. With today's rally, the stock has skyrocketed 403 per cent from its issue price of Rs 587 per share.

At 10:13 AM; Kaynes was trading 4 per cent higher at Rs 2,646.70 as compared to a 0.38 per cent decline in the S&P BSE Sensex.

Kaynes is a prominent player in integrated electronics manufacturing, offering end-to-end and IoT-enabled solutions. The company caters to various sectors such as automotive, industrial, aerospace, defence, outer space, nuclear, medical, railways, IoT, IT, and more.

The company’s order book expanded significantly, moving from Rs 1,517 crore in 2021-22 to an impressive Rs 2,648 crore during 2022-23.

The Electronics System Design and Manufacturing (ESDM) industry has seen significant growth due to the increasing demand for electronic products and the government’s push for a digital economy.

This growth is facilitated by factors such as the National Policy on Electronics, Electronics Manufacturing Clusters, a skilled workforce, and low-cost manufacturing.

Moreover, emerging technologies like IoT, AI, and blockchain can revolutionise various sectors and provide new opportunities for businesses, contributing to India’s digital transformation. The substantial cost advantage of Indian ESDM companies over other countries, particularly China, can help them expand their businesses and capture a larger market share.

Looking ahead, the ESDM market presents several opportunities such as the rollout of 5G technology, the growth of AI, and the development of electric and autonomous vehicles, wearable technology, and ecofriendly electronic products.

With the increasing demand for technology-driven products and services, the future of the ESDM market in India looks promising, Kaynes said in its FY23 annual report.