Rs 6,597 Crore Order Book: Electronics Manufacturer Invests USD 1.03 Million in Wholly-Owned Subsidiary for Business Expansion

The stock is up by 67 per cent from its 52-week low of Rs 3,399 per share and gave multibagger returns of over 350 per cent in 2 years.

Kaynes Technology India Ltd has announced a further investment of up to USD 10,30,000 in its wholly-owned subsidiary, Kaynes Holding Pte Ltd, through the acquisition of up to 1,019,802 equity shares at an issue price of USD 1.01 per share. As of March 31, 2025, Kaynes Holding Pte Ltd. reported a paid-up capital of USD 76,39,992.8, no turnover for FY 2024-25, other income of Rs 41.48 lakh and a net worth of Rs 65.32 crore. This investment aims to expand Kaynes Technology's business presence in electronics system design and manufacturing, and to facilitate strategic investments and acquisitions.

While Kaynes Holding Pte Ltd. is a related party as a wholly-owned subsidiary, this particular investment is not classified as a related party transaction. Mr. Ramesh Kunhikannan, Managing Director, and Mr. Jairam Paravastu Sampath, Whole Time Director & CFO of Kaynes Technology, serve as Directors on the Board of Kaynes Holding Pte Ltd to represent the Company's interests. Except for their representative roles, no other promoters, promoter group members, or directors of Kaynes Technology have any financial or other interest in Kaynes Holding Pte Ltd beyond its status as a wholly-owned subsidiary.

About the Company

Kaynes Technology India Ltd is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India, having capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) services. It has over three decades of experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, EVs, Aerospace, Outer-space, Strategic electronics, Medical, Railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. The company has 16 advanced manufacturing infrastructures to manufacture high-mix and high-value products at variable or flexible volumes across all industry verticals. Apart from this, the company also has service centres in Cochin and Mumbai, catering to railway, aerospace, defence and industrial clients.

Results: The net sales increased by 54 per cent to Rs 637.30 crore, the operating profit increased by 76 per cent to Rs 95.20 crore and the net profit increased by 43 per cent to Rs 81.30 crore in Q4FY25 compared to Q4FY24. The net sales increased by 51 per cent to Rs 1,804.60 crore, the operating profit increased by 62 per cent to Rs 254.20 crore and the net profit increased by 60 per cent to Rs 183.30 crore in FY25 compared to FY24.

Net working capital days stand at 87 as of March 31, 2025, as against 83 days as of March 31, 2024. The company has a market cap of over Rs 35,000 crore and the order book stands at Rs 6,597 crore. The stock is up by 67 per cent from its 52-week low of Rs 3,399 per share and gave multibagger returns of over 350 per cent in 2 years.

Disclaimer: The article is for informational purposes only and not investment advice.