Kaynes Technology India: Share Price & Fundamental Analysis
In less than a year since its listing, Kaynes Technology India’s share price has nearly tripled. The electronics system design and manufacturing (ESDM) company has also been in the news for being involved in the Chandrayaan-3 mission and for signing a memorandum of understanding (MoU) with the Karnataka government worth INR 3,750 crore for semiconductors.
Let us look at Kaynes Technology India’s history, management, business strategy, and financials and try to uncover the reasons behind Kaynes Technology India’s success and the growth potential the company holds.
Kaynes Technology India Overview
Kaynes Technology India is an electronics manufacturing company with capabilities ranging across the entire spectrum of electronics system design and manufacturing (ESDM). As an original equipment manufacturer, it provides ready-to-go solutions for box builds and printed circuit boards (PCBs). As an original design manufacturer, it provides various services for smart technologies, brushless direct current technology, inverter technology, and Internet of Things (IoT) solutions
The company is also involved in providing product engineering services such as submission of proof of concept for prototyping and PCB cladding to embedded designs.
Its customers are from various sectors, including automotive, industrials, aerospace and defense, outer space, nuclear, medical, railways, and IT.
The company operates through 10 facilities spread across Karnataka, Maharashtra, Kerala, Himachal Pradesh, Haryana, and Tamil Nadu.
Kaynes Technology India History
Following are some of the key milestones in the journey of Kaynes Technology India:
- 1988: Kaynes Technology India was established.
- 1995: The company obtained ISO 9001:2000 certification for printed circuit board assemblies and electronic manufacturing services.
- 2006: The company entered a memorandum of understanding (MoU) with Bharat Electronics for contract manufacturing of printed circuit board assemblies, modules, and sub-units.
- 2008: The company gets incorporated.
- 2013: The company forayed into Australian and Malaysian markets.
- 2016: The company started collaborating with Qualcomm Technologies for the design and manufacture of software and hardware tools for various devices.
- 2021: The company started exporting sensor electric assembly to the USA.
- 2022: Kaynes Technology India gets listed on NSE and BSE. Kaynes Technology India’s IPO price band was INR 559 to INR 587 and, on listing day, closed at INR 689.95, a 19% premium on the IPO price.
Kaynes Technology India Management Profile
Ramesh Kunhikannan is the promoter as well as the Managing Director (MD) of Kaynes Technology India and has been a part of the company since its inception in 1988. Kaynes Technology India’s board of directors consists of 9 members led by Savitha Ramesh, the Chairperson. Rajesh Sharma, Kaynes Technology India’s Chief Executive Officer (CEO), is an associate member of the ICAI and has over 15 years of experience in accounting and finance. Jairam P. Sampath, Kaynes Technology India’s Whole-time Director and Chief Financial Officer (CFO), has been a part of the company since 2011 and has 30 years of experience in manufacturing, operations, finance, and sales and marketing.
Board of Directors:
- Savitha Ramesh – Board Chairperson
- Ramesh Kunhikannan – Managing Director
- Jairam P Sampath – Whole-time Director and CFO
- Anup Kumar Bhat – Independent Director
- Vivekanandah Ramasamy – Independent Director
- SG Murali – Independent Director
- Alexander Koshy – Independent Director
- Poornima Ranganath – Independent Director
- Heinz Moitzi – Independent Director
Kaynes Technology India Shareholding Pattern

Kaynes Technology India Business Segments
Kaynes Technology India generates revenue through 4 segments, which are:
- Original equipment manufacturing (OEM) of printed circuit board assembly
- Original equipment manufacturing (OEM) of box build
- Product engineering and Internet of Things (IoT) solutions
- Original design manufacturing (ODM)

As a part of its OEM printed circuit board assembly business, the company undertakes various operations from prototyping to mass manufacturing of printed circuit board assembly, cable harnesses, magnetics, and plastics.
The company can provide build-to-print and build-to-specifications of box builds, sub-systems, and products for various industry verticals.
As a part of its ODM business, the company focuses on providing solutions for smart devices, the Internet of Things (IoT), brushless drive technology, and gallium nitride technology.
The company also provides product engineering solutions for industrial and consumer products.
The company’s products are used in medical devices, aerospace and defense, space, information technology, industrial products, consumer products, railway, and automotive segments.
In FY23, the company generated 85% of its revenue from India and 15% from the rest of the world. The company’s customers come from regions like Europe, the USA, the UK, Japan, and Switzerland.
Kaynes Technology India Financials
Over the past four years, Kaynes Technology India’s revenue from operations has grown at a CAGR of 45% from INR 368.20 crore to INR 1,126.10 crore. In the same period, the company’s EBITDA margin grew from 11.2% to 14.9%. The company has shown a remarkable increase in its net profit after tax (NPAT). In FY20, the company’s NPAT was INR 9.40 crore, and in FY23, the NPAT was INR 95.20 crore.

When we look at Kaynes Technology India’s quarterly performance in FY23, we see that the company’s revenue from operations steadily rose from INR 199.3 crore to INR 364.60 crore. In the same period, the company’s EBITDA margin rose marginally to 16.30% from 12.3%. In Q1 FY24, the revenue from operations dropped on a quarter-on-quarter basis but was still 49.12% higher on a year-on-year basis.
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Key financial ratios

Observations from the key financial ratios:
Through its IPO, Kaynes Technology India wanted to raise money to repay certain borrowings availed by the company. We can observe that the company’s debt-equity ratio has dropped considerably in FY23. This coincides with the amount set for repayment of debt being 100% utilized by the end of FY23.
Over the last four years, the company has significantly improved its returns on capital employed. This puts it in a favorable position to spend on expansion activities as it will have some room if ROCE drops temporarily from capacity expansion.
Beyond the financial statements
Here we look at some key details that you might miss if all you looked at were the balance sheet and profit and loss statements:
Foray into outsourced semiconductor assembly and testing (OSAT)
In August 2023, Kaynes Technology India signed a memorandum of understanding with the Karnataka government to lead the establishment of an outsourced semiconductor assembly testing (OSAT) facility. Under this agreement, the company will also be involved in setting up a printed circuit board manufacturing facility specializing in complex multi-layered boards. This project consists of an investment worth INR 3,750 crore.
Spillovers from 5G adoption
According to GSMA, 1/3rd of the world will be using 5G services in 2 years. At present, infrastructure such as cell towers needs to be upgraded, and fibre density needs to be increased for adopting 5G services. Additionally, devices that support 5G service need to be built. The expected demand and gap in supporting infrastructure for 5G represents an opportunity for electronics manufacturers such as Kaynes Technology India.
Direct and indirect benefits of PLI schemes
In India various production-linked incentive schemes for various sectors such as automobiles, aviation, electronic systems, medical devices, telecom, and white goods. The combined outlay of PLI schemes for the mentioned sectors is more than INR 90,000 crore. These are all sectors that Kaynes Technology India’s customers belong to. Thus, indirectly, these schemes also boost the demand for Kaynes Technology India’s products. Also, the company has approval for PLI schemes for telecom and white goods.
Government support for electronics
Under the Make in India initiative, various government schemes such as Electronics Manufacturing Clusters, Electronics Development Fund, National Policy on Electronics, and Design Linked Incentive (DLIs) schemes were rolled out. These schemes have various benefits such as grants for project cost in clusters, and support for electronics exports. This has created a conducive environment for electronics manufacturers.
Kaynes Technology India Share Price Analysis
Kaynes Technology India was listed in November of 2022. In less than a year, Kaynes Technology India’s share price has increased 188% from INR 689.95 to INR 1,989. The reason for the rise in the share price of Kaynes Technology India can be found in the growth in revenue driven by factors like cost-competitive manufacturing, import substitution of electronics, and China +1 strategy.

Kaynes Technology India Growth Potential
In India as well as globally, there seems to be a trend of moving away from Chinese electronic products. In India, nearly 80% of the printed circuit boards and their assemblies are Chinese products. As Chinese products are substituted, electronic manufacturing companies have an opportunity to capture a higher market share.
Kaynes Technology India is undertaking a number of capacity expansion moves and might be able to take an advantage of this opportunity. It will be utilising INR 960 crore to expand its manufacturing facilities. It is currently building new facilities in Manesar, Chamrajanagar, and Pune, all of which are expected to be operational in FY24 itself. It is also upgrading the existing facilities at Mysuru and Manesar.
Through its subsidiary, Kaynes Electronics Manufacturing, the company is also investing INR 149.30 crore in a new facility at Chamrajanagar, which will also be operational in FY24 itself.
Kaynes Technology India believes that the funds it already has will suffice for these expansion activities.
While semiconductors are essential components for various electronic devices, a global semiconductor crisis is ongoing. The Indian government is providing support through production-linked schemes and subsidies for the growth of the semiconductor industry in India. The company has also decided to enter the outsourced semiconductor assembly and test (OSAT) business.
Additionally, the company will also be focusing on inorganic growth, i.e., acquisitions, within the sector to expand capabilities and enter new markets.
Key Risks
- Kaynes Technology India has low diversification of its order book, as 60% of its revenue comes from its top 10 customers.
- The company is highly dependent on imported raw materials and needs a constant supply of semiconductors, a product currently in short supply.
Frequently asked questions
Who is the owner of Kaynes Technology India?
Kaynes Technology India is owned by Ramesh Kunhikannan, who owns 63.54% of the company and serves as its managing director.
What are the products of Kaynes Technology India?
Kaynes Technology India is an electronics system design and manufacturing company with a presence in printed circuit boards and box builds. The company also provides product engineering services. It can provide end-to-end and Internet of Things (IoT) enabled solutions.
What is the history of Kaynes Technology India?
In 1988, Kaynes Technology India was established as a manufacturing firm, over the years, it has received various quality certifications for its products, undergone incorporation and listing, and has expanded operations to overseas markets.
Who are Kaynes Technology India’s competitors?
Kaynes Technology India is involved in the electronics system design manufacturing (ESDM) sector, which has companies like Bharat FIH, Dixon Technologies, Amber Enterprises India, SFO Technologies,Syrma SGS Technology, Elin Electronics, Avalon Technologies, VVDN Technologies, and Sanmina-SCI Technology India.
