Kaynes Technology (KAYN) witnessed a remarkable surge of 16.3% in its stock price on Monday, propelled by the announcement of a Memorandum of Understanding (MoU) for the establishment of a cutting-edge semiconductor assembly and testing facility in Telangana. Valued at Rs 2,800 crore, this ambitious project is poised to generate more than 2,000 employment opportunities while solidifying Kaynes’ position in the B2B electronic manufacturing sector.
Throughout this year, Kaynes’ shares have exhibited an impressive performance, outpacing the S&P BSE Sensex with a staggering rise of 248%. The company’s robust manufacturing capabilities, forthcoming plans for PCB manufacturing, diversified business models, and strategic collaborations with renowned clients have earned it an ‘overweight’ rating from Morgan Stanley.
Savitha Ramesh, Chairperson of Kaynes Technology, confirmed that the new facility would harness advanced technology, playing a pivotal role in driving the global economy. Ramesh emphasized how this development aligns seamlessly with Kaynes’ growth strategy and significantly bolsters its market standing.
Market analysts remain sanguine about the company’s future prospects, foreseeing impressive Compound Annual Growth Rates (CAGRs) for revenue, Ebitda, and net profit of 36%, 37%, and 39%, respectively, in the period spanning from F23 to F28. These projections underscore a robust growth trajectory for Kaynes Technology in the years ahead, casting a favorable light on its strategic direction.
