Kaynes Technology India is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing player. It provides conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in automotive, industrial, aerospace and defense, outer space, nuclear, medical, railways and Internet of Things (IoT) segments.
Its diversified business model limits its exposure to downturns in specific industry verticals and ensures steady revenue growth.
Kaynes Technology India What does Kaynes Technology do?
Kaynes Technology is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturing company. It provides conceptual design, process engineering, integrated manufacturing and life-cycle support to players in the automotive, industrial, aerospace and defence, outer space, medical, nuclear, railways and IT sectors.
The company operates eight manufacturing facilities in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It also maintains a design and engineering facility in Bangalore.
Its products include data filter systems, perler filter modules, transmitters, receivers and communications boards. It also designs and manufactures military coax cable wiring for defense and aerospace Electronics.
The company has a strong customer base, which is expected to increase in the coming years. Its top 10 customers account for about half of its revenue.
A diversified business model with a portfolio across various industry verticals.
Kaynes Technology has a diverse business model with a portfolio across various industry verticals such as telecom, automotive, defence, space, and IoT. This wide-ranging product portfolio limits its exposure to downturns in a particular vertical and ensures consistent revenues.
It has eight manufacturing plants across the states of Karnataka, Haryana, and Himachal Pradesh. The company plans to utilise the proceeds of its fresh issue for debt repayment, expansion of existing manufacturing facilities in Mysuru and Manesar, investment in a subsidiary and setting up a new facility at Chamarajanagar (Karnataka).
The company also has a backward integration strategy which has the potential to enhance operational efficiency and increase profitability. Its IPO is likely to be well received by the market, especially given its diversified business model and robust order book. We believe that investors should consider holding Kaynes Technology for the medium to long term as its stock price has the potential to outperform peers.
What are the prospects of Kaynes Technology’s share price?
Kaynes Technology’s share price is expected to grow in the future. The company offers design-led electronics manufacturing to original equipment manufacturers (OEMs) in various industry verticals. Its business is classified into OEM – Box Build (“OEM – Box Build”), OEM – PCBAs (“OEM – PCBAs”) and ODM.
This Company provides Printed Circuit Board Assemblies and Electro-Mechanical Assembly services to customers across industry verticals including automotive, aerospace, defence, railways, industrial, outer space, nuclear, medical, Internet of Things (“IoT”) and IT. The Company provides a wide range of services such as conceptual design, process engineering, integrated manufacturing and life-cycle support to major players in these industry verticals.
The Company is among the first in India to offer design-led electronics manufacturing services to OEMs for full box builds and sub-systems. It also provides ODM services for smart metering technology. Smart street lighting, brush less DC (“BLDC”) technology, inverter technology and gallium nitride-based charging technologies.
Kaynes Technology India What are the risks of Kaynes Technology’s share price?
Kaynes Technology is an integrated electronics manufacturing company. It’s offers services in conceptual design, process engineering, integrated manufacturing and life-cycle support. It also has capabilities in the internet of things (IoT) sector.
It has a strong track record of profitability and financial performance. Its products find application across different industry verticals such as telecom, automotive, aerospace and defense, space, medical and railways.
The company has a wide portfolio and limits its exposure to downturns in a particular industry. Its diverse business model ensures consistent revenue generation.
The company has a strong track record of profitability. It’s products find application across different industry verticals such a telecom, automotive, aerospace and defense, space, and medical. Its diverse business model ensures consistent & reliable revenues.