As Kaynes Technology chases faster growth, stock’s valuations follow suit
Subscribe to enjoy similar stories. Kaynes Technology India Ltd shares hit a new 52-week high of ₹6,485 apiece on Tuesday ahead of the company’s announcement that it acquired a 54% stake in Sensonic GmbH, an Austrian provider of distributed acoustic sensing (DAS) solutions. By integrating Sensonic’s fiber optic sensing technology with its manufacturing capabilities, Kaynes aims to deliver improved railway infrastructure solutions focused on safety, operational optimization and efficiency.
In the first half of FY25 (H1FY25), Kaynes’ railway vertical contributed 7.6% of its total revenue, with major clients including Siemens, Frauscher and Hitachi. The acquisition is through a primary infusion of about ₹45 crore into the share capital of Sensonic GmbH. Further, additional financial assistance of about ₹130 crore would be provided to Sensonic GmbH upon request in one or more tranches.
The acquisition aligns with Kaynes’ goal of diversifying its market outreach. Nonetheless, the success of this acquisition would depend on seamless integration and Kaynes’ ability to address execution challenges effectively, ensuring it can deliver the anticipated growth and value. In September, Kaynes also acquired Iskraemeco India, a smart metering solutions provider for ₹43 crore.
These acquisitions reflect the company’s efforts to expand into high-growth sectors with better margins, complementing its aerospace and IT businesses. Kaynes is also integrating outsourced semiconductor assembly and test (OSAT) and printed circuit board (PCB) manufacturing into its operations. This move is expected to reduce dependency on external suppliers, enhance product quality and reliability, lower costs, and improve competitiveness.
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