SEBI has issued a Show-Cause Notice (SCN) to Mr. Ramesh Kunhikannan, the Managing Director of Kaynes Technology, regarding alleged violations of insider trading regulations.
The notice does not confirm wrongdoing yet, but seeks an explanation from the MD before SEBI decides on further action.
Future outlook as per Investors presentation PPT.
•Clear strategy to become an integrated global ESDM player.
•Expanding into HDI PCBs and OSAT (semiconductor packaging) — huge opportunity given India’s focus on electronics localization.|
•Consistent focus on high-margin ODM and IoT products.
•Revenue expected to compound 20–25% CAGR over the next 3 years.
Disclaimer: Invested
Kaynes results were good. At 60% growth guidance, with mgmt affirming revenues to come from semiconductors (osat) in fy27, seems like a structural growth story for the years to come. Finance and depreciation costs to remain elevated as they have to build capacities for global customers to believe in their ability to execute. Receivable days were higher due to high receivables from one of their acquisitions. Valuation remains high but seems cheap if we consider 40-50% growth for next 2-3 years. Negative cash flows remain a concern, due to high inventory and receivables pileup.
Disclaimer: Invested.
Summary Comparison: Presentation vs Earnings Call
| Investor Presentation (May 2025) | Earnings Call (May 2025) | |
|---|---|---|
| Revenue Growth | FY25 Revenue ₹2,721.8 Cr (+51% YoY) | Same figure confirmed; FY26 revenue growth guidance: 60% YoY |
| EBITDA Margin | 15.1% (FY25), up 101 bps YoY | FY26 guidance: 50 bps margin expansion |
| PAT & Margins | 293.4 Cr, PAT margin at 10.8% | Management expects continued PAT growth with improving mix |
| Order Book | 6,596.9 Cr | Order inflow improved from 4,285 Cr/month to 5,114 Cr/month in Q4 |
| Business Mix | Diversified: EMS, ODM (18%), IoT, Aerospace, Automotive | Management confirms higher mix of high-margin ODM, IoT, defense and smart meters in FY26 |
| Capex Plan | Total capex for OSAT (3,400 Cr) & HDI PCB (1,400 Cr) | FY26 key year for ramp-up; subsidies to fund 65–70% of cost |
| New Projects | OSAT & PCB plants under construction | OSAT chips expected in Q3–Q4 FY26, PCB production to start early CY26 |
| Global Expansion | Canada acquisition (August Electronics) + US expansion | Management emphasizes margin-accretive, access to new customers + geographies |
| Working Capital | NWC Days increased to 87 | Addressed in call – plans to reduce via supplier inventory, better receivables control |
Kaynes Technology FY25 Results
PAT up 60% in FY25
Eyes 60% Revenue growth in FY26
Targeting $1B by FY28 & $2B by FY30
Strong growth fully priced in; limited margin for error
Limited upside unless margins or scale beat expectations
Can we expect flawless execution thru FY30?
Bhai - I was invested from lower levels and had done an exit after Q3. Something strange happened here:
I would stay cautious on this counter till management delivers what they project.
