Kaynes rallies on semicon plans

Shares of Kaynes Technology India Ltd have climbed about 3.5% over the past two days following the appointment of Muthukumar Narayanaswamy as managing director on Wednesday.

- Ashish Agrawal [e-mail]

The move comes amid a broader top-manage-ment reshuffle after chief executive officer Rajesh Sharma resigned last week.

Investors are cheering. The stock now sits just 4% below its 52-week high of ₹7,822 after having gained about 20% over the past month, buoyed by optimism over the expected commissioning of its outsourced semiconductor assembly and testing (OSAT) facility in early October, a year after receiving all approvals. The facility, along with the printed circuit board (PCB) plant, will help Kaynes become an integrated electronics player from an electronics manufacturing services (EMS) provider. Kaynes has secured customers for 100% of the OSAT unit's output. The Sanand, Gujarat facility, being set up with an investment of ₹3,300 crore, is projected to generate ₹650 crore in revenue by FY27 and scale to ₹3,000 crore by FY30.