Kaynes Technology shares rose nearly 3% in early trade on Wednesday, extending gains for a second straight session. The stock was in focus after the government cleared 31 electronics manufacturing projects worth Rs 7,877 crore under the fifth tranche of the Electronics Component Manufacturing Scheme (ECMS).
Around 10.38 am, the stock is trading at Rs 3,718.5 apiece on NSE, gaining from its previous close at Rs 3,644.1.
Why Kaynes Technology Shares Are Rising
The latest trigger for the stock is the government's approval of projects under ECMS. According to the Ministry of Electronics and Information Technology, the 31 approved applications involve investments of Rs 7,877 crore, which can ramp up production worth Rs 82,243 crore.
Kaynes Technology's printed circuit board manufacturing facility is one of the projects cleared under the scheme. The plant is expected to become operational within a month, providing a near-term catalyst for its electronics manufacturing business.
Also Read: Kaynes Technology Share Price Gains Nearly 2%, Snaps Three-Day Losing Streak. Time To Buy?
Kaynes Technology Q1FY27 Results
The latest gains come despite a mixed first-quarter performance. Kaynes Technology reported a 24.4% year-on-year decline in consolidated net profit to Rs 56.4 crore in Q1FY27 from Rs 74.6 crore a year earlier.
Revenue from operations, however, increased 40.5% YoY to Rs 946 crore from Rs 673.5 crore. Ebitda rose 29.5% to Rs 147 crore, although Ebitda margin contracted to 15.5% from 16.9% a year earlier.
Stock Price Movement
Despite the recent rally, the stock has remained down over a year, losing more than 40% during the period.
In the past month, the stock, however, gained a little over 10.28%, but remained down in the past week, including the rally since yesterday.
The focus now is likely to remain on the execution of Kaynes Technology's PCB facility and whether the new manufacturing capacity can support growth while the company works to improve profitability and margins.
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