Kaynes Technology shares ascend to 52-week high, climb 10%

The scrip closed in the green at ₹7,280, up 2.52% on the National Stock Exchange (NSE) on Thursday.

Sensonic acquisition

The leading electronics manufacturing services (EMS) provider's bullish momentum was propelled by several factors, including a recent acquisition of Sensonic, a leading provider of Distributed Acoustic Sensing (DAS) solutions to monitor railway infrastructure.

Earlier this month, the company announced that it acquired a 54% stake in Austria-based Sensonic via subscription of shares, it said in a regulatory filing.

“This acquisition marks a pivotal milestone in our mission to revolutionize technological solutions in infrastructure and electronics. Sensonic’s cutting-edge applications align seamlessly with our vision of delivering transformative innovation that propels Progress,” Kayne’s managing director Ramesh Kunhikannan commented.

Potential ₹40,000 crore incentive

According to reports, the Ministry of Electronics and Information Technology (MeitY) is likely to seek the cabinet's approval for a ₹40,000 crore incentive package targeted at the non-semiconductor electronics segment to boost domestic production.

Additionally, reports indicate that the government plans to raise local value addition in electronic components manufacturing from the present 15-18% to 35-40% over five years beginning April 2025.

Advancing projects in semiconductor and PC boards

In early September this year, Kaynes received approval from the union cabinet to set up an outsourced semiconductor assembly and test (OSAT) facility in Gujarat.

“First, we have to get our semicon factory going. We are in the process of setting up the buildings, etc. So in the coming year, we can do the proof of concept as well and by January-March of next year, we will probably have the commercial production going," Whole-Time Director and CFO of Kaynes Technology Jairam Sampat told CNBCTV-18.

The company is also advancing its project in high-density printed circuit board (PC board) fabrication, an avenue that would benefit from the reported ₹40,000 crore incentive.

Past stock performance

The stock rallied about 10.78% over the past five days and jumped 26.04% in the past month.

The company's shares ascended 88.62% in the past six months and gained 172.76% on a year-to-date basis.