Kaynes Technology India Ltd - Stock Valuation and Financial Performance

BSE: 543664 | NSE: KAYNES | Electronics - Components | Small Cap

Kaynes Technology Share Price

2,890 102.60 3.68%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Kaynes Technology

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Kaynes Technology India stock performance -

mw4me loader
P/E Ratio (SA):
154.91
Market Cap:
17,816.5 Cr.
52-wk low:
931.7
52-wk high:
3,248

Is Kaynes Technology India Ltd an attractive stock to invest in?

1. Is Kaynes Technology India Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Kaynes Technology India Ltd is a below average quality company.

2. Is Kaynes Technology India Ltd undervalued or overvalued?

The key valuation ratios of Kaynes Technology India Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Kaynes Technology India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Kaynes Technology India Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Kaynes Technology:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kaynes Technology India Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.8%10.7%9.5%9.1%13.8%11.3%11.4%9.3%17.9%16.5%-
Value Creation
Index
-0.2-0.2-0.3-0.30.0-0.2-0.2-0.30.30.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2373172762783693533603936711,0871,256
Sales YoY Gr.-33.7%-13.1%0.9%32.9%-4.5%2.1%9%70.9%61.8%-
Adj EPS 13.313.511.77.115.612.414.59.88.516.318
YoY Gr.-1.8%-13.5%-39.1%119.2%-20.6%17%-32.8%-13.1%92.3%-
BVPS (₹) 95.2111.5123.285.3103.3114.7128.6169.443.9164.7380.9
Adj Net
Profit
6.66.75.85.812.710.111.8839.194.7115
Cash Flow from Ops. -68.51928.39.4-4.533.41314.7-52.3-
Debt/CF from Ops. -14.111.85.63.410.4-34.34.210.511.2-2.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 18.4%24.1%44.5%61.8%
Adj EPS 2.3%0.9%3.9%92.3%
BVPS6.3%9.8%8.6%275.7%
Share Price - - - 201.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1513.19.88.816.611.411.96.522.916.36.6
Op. Profit
Mgn %
8.288.77.810.410.611.69.613.615.313.9
Net Profit
Mgn %
2.82.12.12.13.52.93.325.88.79.2
Debt to
Equity
1.81.81.71.41.21.71.410.80.1-
Working Cap
Days
225197241244219269281276214214173
Cash Conv.
Cycle
928393979312614113611099109

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 44.47%

Debt to equity has declined versus last 3 years average to 0.13

Sales growth is good in last 4 quarters at 33.42%

Return on Equity has declined versus last 3 years average to 6.60%

Net Profit has been subdued in last 3 years 3.93%

Latest Financials - Kaynes Technology India Ltd.

Standalone Consolidated
TTM EPS (₹) 18 22.4
TTM Sales (₹ Cr.) 1,256 1,532
BVPS (₹.) 380.9 385
Reserves (₹ Cr.) 2,371 2,397
P/BV 7.32 7.24
PE 154.91 124.22
From the Market
52 Week Low / High (₹) 931.65 / 3248.00
All Time Low / High (₹) 625.05 / 3248.00
Market Cap (₹ Cr.) 17,817
Equity (₹ Cr.) 63.9
Face Value (₹) 10
Industry PE 88.6

Management X-Ray of Kaynes Technology:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Kaynes Technology

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2373172762783693533603936711,087
Operating Expenses 218292252256331317319355580920
Manufacturing Costs3931119242243662
Material Costs172235193192250233239268469760
Employee Cost 19252731393940435670
Other Costs 24222922232019401828
Operating Profit 202524223836413892166
Operating Profit Margin (%) 8.2%8.0%8.7%7.8%10.4%10.2%11.4%9.6%13.6%15.3%
Other Income 24155224512
Interest 9121413162024242636
Depreciation 3344556101218
Exceptional Items 0000000000
Profit Before Tax 101489221313958125
Tax 362284201730
Profit After Tax 78671591194195
PAT Margin (%) 2.8%2.6%2.1%2.6%4.0%2.6%3.1%2.2%6.1%8.7%
Adjusted EPS (₹)13.316.811.78.818.011.313.910.58.916.3
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 475561708494105139203958
Share Capital 555577784758
Reserves 42505665788798131156900
Minority Interest0000000000
Debt81971019188148120137154126
Long Term Debt381212193010172616
Short Term Debt7889897970119111120128111
Trade Payables6373707697899188156215
Others Liabilities 172324263529444197127
Total Liabilities 2092482562633043603604066091,427

Fixed Assets

Gross Block36526168707990110159185
Accumulated Depreciation9121620253036435366
Net Fixed Assets2739454845495467107119
CWIP 001012910426
Investments 3333343334
Inventories6171808085120144153217402
Trade Receivables89100889113212193122189220
Cash Equivalents 78108832121320479
Others Assets212629333032453970177
Total Assets 2092482562633043603604066091,427

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -6819289-5331315-52
PBT 101489221313958125
Adjustment 10111715182430283340
Changes in Working Capital -22-13-26-28-36-8-19-73-170
Tax Paid -4-3-4-1-3-6-2-4-3-47
Cash Flow From Investing Activity -5-12-12-9-1-10-19-19-37-480
Capex -7-15-11-9-2-11-19-20-36-47
Net Investments 000000-10-3-443
Others 23-101011210
Cash Flow From Financing Activity 135-5-21-839-36826550
Net Proceeds from Shares 002000000660
Net Proceeds from Borrowing 000000009-10
Interest Paid -9-11-11-12-14-19-230-25-34
Dividend Paid 0000000000
Others 21164-10657-14842-65
Net Cash Flow 212-2024-222318
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)14.9816.229.9610.9619.0610.411.437.0524.0616.34
ROCE (%)15.5618.2613.2513.4822.0715.5214.912.326.0722.05
Asset Turnover Ratio1.331.491.181.161.321.0611.031.321.07
PAT to CFO Conversion(x)-0.8613.1740.6-0.5631.440.37-0.55
Working Capital Days
Receivable Days1271011151091091311081008469
Inventory Days7471929780106134138100104
Payable Days1271061361391261451371229589

Kaynes Technology India Ltd Stock News

Kaynes Technology India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Kaynes Technology on 28-Mar-2024 16:01 is ₹2,890.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Kaynes Technology stood at ₹17,816.5.
The latest P/E ratio of Kaynes Technology as of 28-Mar-2024 16:01 is 154.9.
The latest P/B ratio of Kaynes Technology as of 28-Mar-2024 16:01 is 7.32.
The 52-week high of Kaynes Technology is ₹3,248 and the 52-week low is ₹931.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Kaynes Technology is ₹1,256 ( Cr.) .

About Kaynes Technology India Ltd

Kaynes Technology India Limited was incorporated on March 28, 2008 at Mysore, Karnataka as a private limited company under the Companies Act, 1956, with the name ‘Kaynes Technology India Private Limited’ pursuant to a certificate of incorporation granted by the Registrar of the Companies, Karnataka at Bangalore (RoC). Subsequently, the name of the Company was changed to ‘Kaynes Technology India Limited’ upon conversion of the company into a public limited company pursuant to a special resolution passed by company’s Shareholders on March 24, 2022 and the fresh certificate of incorporation was issued by the RoC consequent upon change of name on conversion to public limited company on March 31, 2022.

The company is an end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (ESDM) services. It has experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (IoT), Information Technology (IT) and other segments.

The company operates eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. Its facilities are located in proximity to its customers, allowing it to service their requirements efficiently and cost-effectively. Certain of its manufacturing facilities are approved under the Electronics Hardware Technology Park Scheme of Software Technology Park of India, Bengaluru and 100% Export Oriented Unit Scheme of Madras Export Processing Zone, Chennai, Tamilnadu that offer incentives similar to a special economic zone. The company lays significant emphasis on research and development. This has enabled it to address its consumers’ diverse needs, enhance existing products with emerging technologies, introduce new and innovative products in the market, enhance existing products with emerging technologies, and optimize costs across its products through value analysis and value engineering. It has a dedicated research and development facility located within its facility at Mysuru, Karnataka - Unit - I.

Business area of the company

The company undertakes “Build To Print” or “Build to Specifications” of complex box builds, sub-systems and products across various industry verticals. It undertake turnkey electronics manufacturing services of PCBAs, cable harness, magnetics and plastics ranging from prototyping to product realization including mass manufacturing. It offer ODM services in smart metering technology, smart street lighting, brush less DC (BLDC) technology, inverter technology, gallium nitride based charging technology and providing IoT solutions for making smart consumer appliances or devices IoT connected. It offers conceptual design and product engineering services in industrial and consumer segments.

The company’s services include PCB cladding or electrical schematics to embedded design and submitting proof of concept to prototyping. It also offer connected product engineering and solutions. It has a portfolio of hardware, software accelerators and proprietary sensors along with cloud platform based service and solution offerings in asset tracking, remote device management and smart product development. Its digital engineering offerings leverage latest technologies including IoT, big data, machine learning, cloud and media to improve customers’ efficiency. It also provide end-to-end IoT and cloud enablement solutions and offer IoT data and analytics platform and vertical IoT solutions.

Key Awards, Accreditations and Recognition

  • 2005-2006: State Export Excellence Award, Government of Karnataka presented by the Visvesvaraya Industrial Trade Centre.
  • 2007-2008: State Export Excellence Award, Government of Karnataka presented by the Visvesvaraya Industrial Trade Centre.
  • 2007: Special recognition Award “National Award - 2007 for outstanding entrepreneurship efforts” by Ministry of Micro, Small and Medium Enterprises, Government of India.
  • 2013: Plaque of honour for outstanding achievements in manufacturing and corporate social responsibility by the Mysore District Parents association for empowering developmentally disabled.
  • 2014: Platinum Award for being rated as the highest scoring SMEs in India by the SKOCH Group.
  • 2014: SKOCH merit certificate for qualifying amongst India’s Best SMEs by the SKOCH-2014 Group.
  • 2015: Award for Best Electronics Manufacturing Company at the IESA- Technovation Awards by India Electronics & Semiconductor Association.
  • 2015- 2016: Award for High Growth in Electronic Hardware Exports - Tier II & III region at the STPI Export Awards 2015-2016 by Software Technology Parks of India.
  • 2016: Make in India -Emerging Entrepreneur Award by India Today Group.
  • 2016: Excellence Award by NCQC, Raipur Quality Circle Forum of India.
  • 2017-2018: Export Excellence Award for highest exports in electronics hardware sector presented by Ministry of Commerce & Industry, Government of India.
  • 2018: First Prize (MSE) in the Excellence in Manufacturing component at the Elcina defEnnovation Awards.
  • 2018: Winner at the Hand Soldering Competition by IPC India.
  • 2018: Award for Entrepreneur of the Year (Trendsetter-Manufacturing) by CII Connect.
  • 2018: ELCINA defEnnovation Award for Excellence in Manufacturing - Components, MSME Category by Elcina.
  • 2022: ELCINA defEnnovation Award for Excellence in Manufacturing - Product (large scale). 

Major events and milestones

  • 1988: Established as a manufacturing enterprise.
  • 1995: Obtained ISO 9001:2000 certification for printed circuit board assemblies and electronic manufacturing services.
  • 2000: Obtained approval for setting up of 100% hardware export oriented unit under the electronic hardware technology park scheme of government of India for manufacture of populated printed circuit boards.
  • 2001: Commenced exporting operations.
  • 2004: New unit in Himachal Pradesh for resale of printed circuits board assemblies.
  • 2006: Established manufacturing facility (micro enterprise) in Uttarakhand.
  • 2006: Entered into memorandum of understanding with NS-SBU Bharat Electronics Limited, Bengaluru for contract manufacturing of PCB assemblies, modules and sub-units.
  • 2008: Incorporation of Company.
  • 2008: Established Subsidiary, Kaynes Technology Europe GmbH, a limited liability corporation at Hunenberg, Switzerland.
  • 2008: Takeover of Kaynes Technology, a Proprietorship firm of Ramesh Kunhikannan, by the Company.
  • 2009: Established unit in Chennai for undertaking services related to solenoids, electromagnetic relays, inductors, transformers and electro mechanical parts.
  • 2009: Expanded customer base in Europe in line of the purchase orders received.
  • 2010: Received Industry Vertical Specific Quality Management System Certifications for manufacturing and servicing of populated printed circuit boards, electromechanical assemblies and transformer for electronic assemblies.
  • 2010: Established a unit at Bengaluru, Karnataka, India.
  • 2010: Received Industry Vertical Specific Quality Management System Certifications for manufacturing and servicing of populated printed circuit boards, electromagnetic assemblies and cable harness for electronic assemblies for aerospace application.
  • 2011: Received Industry Vertical Specific Quality Management System Certifications for the custom manufacture of populated printed circuit board assemblies, electromechanical assemblies and Patient Monitoring Systems.
  • 2012: Established manufacturing facility in Mysore, Karnataka, India.
  • 2013: Commenced exporting of products to Australia and Malaysia.
  • 2016: Established manufacturing facility in Manesar, Gurugram, Haryana, India.
  • 2016: Collaboration with Qualcomm Technologies Incorporation for design and manufacturing of software tools and hardware tools for various devices.
  • 2020: Impetus towards embedded system, design and IOT solutions and design skills enhancement.
  • 2021: Commenced exporting of sensor electric assembly to Phoenix, Arizona.
  • 2021: Growth in aerospace, defence, power electronics and expansion into consumer electronics.
  • 2022: Received approval under the Production Linked Incentive Scheme for White Goods (Air Conditioner and LED Lights).
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