Top Tweets for #Kaynestechnology

8 days ago

#VolumeBuzzers On Tuesday #Meesho #KaynesTechnology #TransrailLighting @hormaz_fatakia #CNBCTV18Market

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9 days ago

#KaynesTechnology #KAYNES #EMS #OSAT Kaynes Technology: Every dated promise has slipped one to two quarters. Haircut applied.FY27 is the transition year. FY28 is when the story either repairs or does not. Watch Nov 2026 for plant billing, Feb 2027 for cash flow, mid-2027 for a named metering fix, and FY29 for ROCE — and only if OSAT and PCB actually fill. Not investment advice. DYOR.

10 days ago

#KaynesTechnology #KAYNES #EMS #OSAT Kaynes: six problems, one healthy core. Cash, metering, the OSAT/PCB ramp, profit conversion, concentration, and guidance. The EMS engine is not the issue. The drag is: 1. Cash is not converting: This is the biggest problem. Operating cash flow was minus ₹259 cr in Q1 FY27, and working-capital days rose to 163 from 122 a year earlier. Total receivables are ₹1,925 cr, of which ₹1,311 cr is metering, while core EMS receivables are flat at ₹613 cr. Management has promised positive or neutral cash flow several times (FY26, then Q3, then year-end), and each date has slipped or softened. 2. Smart metering is a working-capital trap that management keeps re-labelling. Billing of about ₹240 cr against about ₹88 cr collected in Q1 led management to halt shipments, so segment revenue fell 12%. The fix has moved from "we'll collect" to "hand off installation and servicing" to "an SPV with a partner." Nobody has published how old the receivables are or which utilities owe them. 3. The OSAT and PCB build-out is late, over-promised and depressing returns. Combined FY27 revenue guidance fell from ₹550-700 cr to ₹450-500 cr. PCB plant start-up slipped from Q1 to Q3 FY27. Meanwhile depreciation more than doubled to ₹37 cr, ROCE fell from 15.8% to 11.6%, and asset turnover fell from 3.8x to 2.0x. Of the roughly ₹700 cr of OSAT capex, only about ₹170 cr of subsidy has come back so far. 4. Profits are under pressure even where revenue is strong. Q1 revenue grew 40.5%, but PAT fell 24.4%. The effective tax rate was about 35% against about 22-23% standalone, EBITDA margin fell to 15.6% from 16.8% and was below the 16-17% management had guided, and component costs are rising with only a one-quarter pass-through lag. 5. The business is concentrated in a few places. Industrial and automotive are about three quarters of revenue by a broker's estimate. One large EV customer cut volumes by about 90% in FY26, and the PCB plant's initial capacity is booked by a single global customer. The fast-growing segments (aerospace, consumer, space) are small and lumpy. 6. Management credibility is the common thread: The CFO said "on track" for ₹4,000-4,100 cr of FY26 revenue with about six days left, and the company reported about ₹3,600 cr. Guidance moved from absolute numbers to "twice the market." Cuts were described as communication errors. The CFO was also absent from the Q4 call for health reasons, and there was a top-management restructuring and an earlier CEO exit. The Q1 call did open by acknowledging "fair and direct questions," and management admitted the acquisition receivables were not fully checked, which is a positive sign, but one quarter is not a track record. The core EMS engine looks healthy: standalone growth of about 33% against a market of about 17%, a working-capital cycle of about 55 days, and an order book of ₹8,904 cr. So the debate is whether metering and the semiconductor and PCB build-out drag returns for years or normalise. Disclaimer: This is an analysis of the record, not a recommendation.

AvishkarNagrath's tweet photo. #KaynesTechnology #KAYNES #EMS #OSAT
Kaynes: six problems, one healthy core.

Cash, metering, the OSAT/PCB ramp, profit conversion, concentration, and guidance. The EMS engine is not the issue. The drag is:

1. Cash is not converting: This is the biggest problem. Operating cash flow was minus ₹259 cr in Q1 FY27, and working-capital days rose to 163 from 122 a year earlier. Total receivables are ₹1,925 cr, of which ₹1,311 cr is metering, while core EMS receivables are flat at ₹613 cr. Management has promised positive or neutral cash flow several times (FY26, then Q3, then year-end), and each date has slipped or softened.

2. Smart metering is a working-capital trap that management keeps re-labelling. Billing of about ₹240 cr against about ₹88 cr collected in Q1 led management to halt shipments, so segment revenue fell 12%. The fix has moved from "we'll collect" to "hand off installation and servicing" to "an SPV with a partner." Nobody has published how old the receivables are or which utilities owe them.

3. The OSAT and PCB build-out is late, over-promised and depressing returns. Combined FY27 revenue guidance fell from ₹550-700 cr to ₹450-500 cr. PCB plant start-up slipped from Q1 to Q3 FY27. Meanwhile depreciation more than doubled to ₹37 cr, ROCE fell from 15.8% to 11.6%, and asset turnover fell from 3.8x to 2.0x. Of the roughly ₹700 cr of OSAT capex, only about ₹170 cr of subsidy has come back so far.

4. Profits are under pressure even where revenue is strong. Q1 revenue grew 40.5%, but PAT fell 24.4%. The effective tax rate was about 35% against about 22-23% standalone, EBITDA margin fell to 15.6% from 16.8% and was below the 16-17% management had guided, and component costs are rising with only a one-quarter pass-through lag.

5. The business is concentrated in a few places. Industrial and automotive are about three quarters of revenue by a broker's estimate. One large EV customer cut volumes by about 90% in FY26, and the PCB plant's initial capacity is booked by a single global customer. The fast-growing segments (aerospace, consumer, space) are small and lumpy.

6. Management credibility is the common thread: The CFO said "on track" for ₹4,000-4,100 cr of FY26 revenue with about six days left, and the company reported about ₹3,600 cr. Guidance moved from absolute numbers to "twice the market." Cuts were described as communication errors. The CFO was also absent from the Q4 call for health reasons, and there was a top-management restructuring and an earlier CEO exit. The Q1 call did open by acknowledging "fair and direct questions," and management admitted the acquisition receivables were not fully checked, which is a positive sign, but one quarter is not a track record.

The core EMS engine looks healthy: standalone growth of about 33% against a market of about 17%, a working-capital cycle of about 55 days, and an order book of ₹8,904 cr. So the debate is whether metering and the semiconductor and PCB build-out drag returns for years or normalise.

Disclaimer: This is an analysis of the record, not a recommendation.

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10 days ago

#KaynesTechnology #KAYNES #EMS #OSAT Kaynes: six problems, one healthy core. Cash, metering, the OSAT/PCB ramp, profit conversion, concentration, and guidance. The EMS engine is not the issue. The drag is: 1. Cash is not converting: This is the biggest problem. Operating cash flow was minus ₹259 cr in Q1 FY27, and working-capital days rose to 163 from 122 a year earlier. Total receivables are ₹1,925 cr, of which ₹1,311 cr is metering, while core EMS receivables are flat at ₹613 cr. Management has promised positive or neutral cash flow several times (FY26, then Q3, then year-end), and each date has slipped or softened. 2. Smart metering is a working-capital trap that management keeps re-labelling. Billing of about ₹240 cr against about ₹88 cr collected in Q1 led management to halt shipments, so segment revenue fell 12%. The fix has moved from "we'll collect" to "hand off installation and servicing" to "an SPV with a partner." Nobody has published how old the receivables are or which utilities owe them. 3. The OSAT and PCB build-out is late, over-promised and depressing returns. Combined FY27 revenue guidance fell from ₹550-700 cr to ₹450-500 cr. PCB plant start-up slipped from Q1 to Q3 FY27. Meanwhile depreciation more than doubled to ₹37 cr, ROCE fell from 15.8% to 11.6%, and asset turnover fell from 3.8x to 2.0x. Of the roughly ₹700 cr of OSAT capex, only about ₹170 cr of subsidy has come back so far. 4. Profits are under pressure even where revenue is strong. Q1 revenue grew 40.5%, but PAT fell 24.4%. The effective tax rate was about 35% against about 22-23% standalone, EBITDA margin fell to 15.6% from 16.8% and was below the 16-17% management had guided, and component costs are rising with only a one-quarter pass-through lag. 5. The business is concentrated in a few places. Industrial and automotive are about three quarters of revenue by a broker's estimate. One large EV customer cut volumes by about 90% in FY26, and the PCB plant's initial capacity is booked by a single global customer. The fast-growing segments (aerospace, consumer, space) are small and lumpy. 6. Management credibility is the common thread: The CFO said "on track" for ₹4,000-4,100 cr of FY26 revenue with about six days left, and the company reported about ₹3,600 cr. Guidance moved from absolute numbers to "twice the market." Cuts were described as communication errors. The CFO was also absent from the Q4 call for health reasons, and there was a top-management restructuring and an earlier CEO exit. The Q1 call did open by acknowledging "fair and direct questions," and management admitted the acquisition receivables were not fully checked, which is a positive sign, but one quarter is not a track record. The core EMS engine looks healthy: standalone growth of about 33% against a market of about 17%, a working-capital cycle of about 55 days, and an order book of ₹8,904 cr. So the debate is whether metering and the semiconductor and PCB build-out drag returns for years or normalise. Disclaimer: This is an analysis of the record, not a recommendation.

10 days ago

#KaynesTechnology #KAYNES #EMS #OSAT #Semiconductors Kaynes has two opposite businesses. 1. EMS unit economics: Kaynes buys components, assembles and tests them on its lines, and sells the finished board or box to the customer. Most of the revenue is really component cost passed straight through, with roughly a one-quarter lag. That is why the reported EBITDA margin of about 15-17% (15.6% in Q1 FY27) looks healthy. On the value Kaynes actually adds, the margin is much higher, and the pass-through component only inflates the revenue line. Take an illustrative ₹100 order. Around ₹70-75 might be components passed through, and the rest is Kaynes's own value: labour, machine time, testing, engineering, and yield. Out of that, about ₹15-16 remains as EBITDA. Here is what drives the margin: • Utilisation: Lines and engineers cost the same whether they are busy or idle. • Mix: Box-build, regulated sectors (auto, aerospace, medical) and design work earn more per rupee of revenue than simple build-to-print. • Yield and rework: Scrap in a certified process is a direct margin leak. •Working capital: This is the hidden variable. Buying components ahead of billing ties up cash. Standalone EMS ran at roughly 53-55 days, which is a good business. It is the consolidated 163 days that looks alarming, and that gap comes mostly from metering. The moat is that certification (AS9100D, IATF 16949, ISO 13485, Nadcap) takes years, so customers rarely switch. That is why about 80% of the business comes from existing clients, and why the average order is small, about ₹7 lakh. Growth depends on stickiness and mix rather than on winning one giant contract. 2. How OSAT makes money: Chip packaging works like this. A fab makes a wafer of chips. An OSAT (outsourced semiconductor assembly and test) business cuts it, mounts each chip on a substrate, seals it, tests it, and ships it. It charges per device, usually pennies to a few rupees a unit. The customer typically supplies the wafer, so the OSAT is paid for processing rather than for the silicon. The economics are the reverse of EMS: • Fixed cost dominates: Equipment is expensive, and most of the cost is depreciation. Profit depends on running the plant at high utilisation, so a half-empty plant can lose money even with orders. • Qualification is slow: Each customer has to approve the process and the parts before volume orders arrive, which can take many months. Revenue therefore comes long after the capex is spent. The subsidy changes the capital base. Under ISM 1.0 the central government covers 50% and Gujarat adds 20%, so about 70% of eligible capex is effectively reimbursed. But it is paid on milestones. Kaynes has spent about ₹700 cr on Sanand, and about ₹170 cr of the subsidy has been received so far. The gap between spending and reimbursement is a cash-flow cost in the meantime. Capacity today is about 2.3bn devices, with a plan to reach 8bn. EMS compounds through stickiness. OSAT pays off only when utilisation ramps. FY27 test: ₹450–500 cr from OSAT + PCB. Disclaimer: Not investment advice. DYOR.

AvishkarNagrath's tweet photo. #KaynesTechnology #KAYNES #EMS #OSAT #Semiconductors

Kaynes has two opposite businesses.

1. EMS unit economics:
Kaynes buys components, assembles and tests them on its lines, and sells the finished board or box to the customer. Most of the revenue is really component cost passed straight through, with roughly a one-quarter lag. That is why the reported EBITDA margin of about 15-17% (15.6% in Q1 FY27) looks healthy. On the value Kaynes actually adds, the margin is much higher, and the pass-through component only inflates the revenue line.

Take an illustrative ₹100 order. Around ₹70-75 might be components passed through, and the rest is Kaynes's own value: labour, machine time, testing, engineering, and yield. Out of that, about ₹15-16 remains as EBITDA.

Here is what drives the margin:
• Utilisation: Lines and engineers cost the same whether they are busy or idle.
• Mix: Box-build, regulated sectors (auto, aerospace, medical) and design work earn more per rupee of revenue than simple build-to-print.
• Yield and rework: Scrap in a certified process is a direct margin leak.
•Working capital: This is the hidden variable. Buying components ahead of billing ties up cash. Standalone EMS ran at roughly 53-55 days, which is a good business. It is the consolidated 163 days that looks alarming, and that gap comes mostly from metering.

The moat is that certification (AS9100D, IATF 16949, ISO 13485, Nadcap) takes years, so customers rarely switch. That is why about 80% of the business comes from existing clients, and why the average order is small, about ₹7 lakh. Growth depends on stickiness and mix rather than on winning one giant contract.

2. How OSAT makes money:

Chip packaging works like this. A fab makes a wafer of chips. An OSAT (outsourced semiconductor assembly and test) business cuts it, mounts each chip on a substrate, seals it, tests it, and ships it. It charges per device, usually pennies to a few rupees a unit. The customer typically supplies the wafer, so the OSAT is paid for processing rather than for the silicon.

The economics are the reverse of EMS:

• Fixed cost dominates: Equipment is expensive, and most of the cost is depreciation. Profit depends on running the plant at high utilisation, so a half-empty plant can lose money even with orders.

• Qualification is slow: Each customer has to approve the process and the parts before volume orders arrive, which can take many months. Revenue therefore comes long after the capex is spent.

The subsidy changes the capital base. Under ISM 1.0 the central government covers 50% and Gujarat adds 20%, so about 70% of eligible capex is effectively reimbursed. But it is paid on milestones. Kaynes has spent about ₹700 cr on Sanand, and about ₹170 cr of the subsidy has been received so far. The gap between spending and reimbursement is a cash-flow cost in the meantime.

Capacity today is about 2.3bn devices, with a plan to reach 8bn.

EMS compounds through stickiness. OSAT pays off only when utilisation ramps. FY27 test: ₹450–500 cr from OSAT + PCB.

Disclaimer: Not investment advice. DYOR.

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10 days ago

#KaynesTechnology #KAYNES #EMS #OSAT #Semiconductors Kaynes has two opposite businesses. 1. EMS unit economics: Kaynes buys components, assembles and tests them on its lines, and sells the finished board or box to the customer. Most of the revenue is really component cost passed straight through, with roughly a one-quarter lag. That is why the reported EBITDA margin of about 15-17% (15.6% in Q1 FY27) looks healthy. On the value Kaynes actually adds, the margin is much higher, and the pass-through component only inflates the revenue line. Take an illustrative ₹100 order. Around ₹70-75 might be components passed through, and the rest is Kaynes's own value: labour, machine time, testing, engineering, and yield. Out of that, about ₹15-16 remains as EBITDA. Here is what drives the margin: • Utilisation: Lines and engineers cost the same whether they are busy or idle. • Mix: Box-build, regulated sectors (auto, aerospace, medical) and design work earn more per rupee of revenue than simple build-to-print. • Yield and rework: Scrap in a certified process is a direct margin leak. •Working capital: This is the hidden variable. Buying components ahead of billing ties up cash. Standalone EMS ran at roughly 53-55 days, which is a good business. It is the consolidated 163 days that looks alarming, and that gap comes mostly from metering. The moat is that certification (AS9100D, IATF 16949, ISO 13485, Nadcap) takes years, so customers rarely switch. That is why about 80% of the business comes from existing clients, and why the average order is small, about ₹7 lakh. Growth depends on stickiness and mix rather than on winning one giant contract. 2. How OSAT makes money: Chip packaging works like this. A fab makes a wafer of chips. An OSAT (outsourced semiconductor assembly and test) business cuts it, mounts each chip on a substrate, seals it, tests it, and ships it. It charges per device, usually pennies to a few rupees a unit. The customer typically supplies the wafer, so the OSAT is paid for processing rather than for the silicon. The economics are the reverse of EMS: • Fixed cost dominates: Equipment is expensive, and most of the cost is depreciation. Profit depends on running the plant at high utilisation, so a half-empty plant can lose money even with orders. • Qualification is slow: Each customer has to approve the process and the parts before volume orders arrive, which can take many months. Revenue therefore comes long after the capex is spent. The subsidy changes the capital base. Under ISM 1.0 the central government covers 50% and Gujarat adds 20%, so about 70% of eligible capex is effectively reimbursed. But it is paid on milestones. Kaynes has spent about ₹700 cr on Sanand, and about ₹170 cr of the subsidy has been received so far. The gap between spending and reimbursement is a cash-flow cost in the meantime. Capacity today is about 2.3bn devices, with a plan to reach 8bn. EMS compounds through stickiness. OSAT pays off only when utilisation ramps. FY27 test: ₹450–500 cr from OSAT + PCB. Disclaimer: Not investment advice. DYOR.

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11 days ago

#KaynesTechnology #KAYNES #EMS #Semiconductors Kaynes Technology — Business Model Explainer At its simplest, Kaynes makes electronics for other companies. A carmaker, aerospace firm or railway supplier designs a product; Kaynes buys the components, assembles them into circuit boards or finished units, tests them, and ships. That's EMS — electronics system design and manufacturing. Started in Mysuru in 1988, listed in 2022, now 500+ customers, 22 plants across eight states, FY26 revenue ~₹3,626 Cr. 1. The economics: Kaynes' price is component cost plus a margin on the assembly/testing it does. Contracts let it pass component-price swings through to customers, so revenue moves with component prices but margin is earned only on the value it adds — which is why EBITDA sits around 15-17%. Buying components ahead of shipping also means the business carries heavy inventory and working capital. 2. Why customers stay: Kaynes deliberately targets regulated, low-volume, high-mix work — aerospace (AS9100D, Nadcap), automotive (IATF 16949), medical (ISO 13485). Switching suppliers means an expensive requalification, so ~80% of business is repeat, and average order size is small (~₹7 lakh) — the opposite of consumer-electronics-style volume lines. 3. Two directions of expansion from that manufacturing base. Up the value chain: from board assembly to full "box-build" finished units (~42% of the OEM segment in FY25), and toward owning IP — 400+ engineers, in-house design platforms in lighting, motor drives, power electronics, plus its own IoT software, targeting ~30% of revenue from self-designed products by FY30. Down toward inputs: Kaynes Circuits (Chennai) makes the multi-layer PCBs it would otherwise buy, and Kaynes Semicon (Sanand) does chip packaging and testing (OSAT) — heavily subsidised by government — aiming to own the chain from chip to board to finished product, which few Indian peers attempt. 4. The one different piece: smart metering (Gridcrest, ex-Iskraemeco) — utility customers who pay slowly, a genuinely different cash-flow profile from EMS, and the source of Kaynes' working-capital strain. 5. Smaller pieces round it out: August Electronics (North America exports), a new space subsidiary, and minority stakes in a photonics company and a fibre-sensing company. Disclaimer: Not investment advice. Independent research, not SEBI-registered. DYOR.

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Zee Business

@ZeeBusiness

28 days ago

Stock In Action Godrej Consumer में क्यों आई गिरावट? Kaynes Tech में क्यों नहीं करनी खरीदारी? लगातार कमजोरी के बाद BSE में कहां से आई मजबूती? RBL Bank: 3 महीनों में 15% रिटर्न, अभी भी खरीदारी का मौका? जानिए अनिल सिंघवी से... #GodrejConsumer #KaynesTechnology #KaynesTech #BSE #RBLBank #AnilSinghvi @AnilSinghvi_

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Zee Business

@ZeeBusiness

28 days ago

Stock In Action Godrej Consumer में क्यों आई गिरावट? Kaynes Tech में क्यों नहीं करनी खरीदारी? लगातार कमजोरी के बाद BSE में कहां से आई मजबूती? RBL Bank: 3 महीनों में 15% रिटर्न, अभी भी खरीदारी का मौका? जानिए अनिल सिंघवी से... #GodrejConsumer #KaynesTechnology #KaynesTech #BSE #RBLBank #AnilSinghvi @AnilSinghvi_ @Neha_1007

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30 days ago

💰 #KaynesTechnology is targeting a stronger cash-flow profile by FY27-end. 📊 MD Muthukumar Narayanaswamy expects #WorkingCapital trends to improve from Q3, with a sharper recovery in Q4 as metering receivables come down. 📝 @Reematendulkar reports. https://t.co/5wmVWoYiva

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kaviyaram @kaviya33052425

about 1 month ago

#VolumeBuzzers On Monday #KaynesTechnology #IndoCountIndustries #ZeeEntertainment @hormaz_fatakia #CNBCTV18Market

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about 1 month ago

🔥 KAYNES TECH — BIG MOVE ZONE 👀 Current: 3685 Above 3750 → 3820 → 3900 3645–3700 is the key support zone. Below 3645 → 3580 → 3500 Live updates https://t.co/rvvWtKhPvo Wait for confirmation #KAYNES #NIFTY #NIFTY50 #StockMarket #KaynesTechnology

kaviya33052425's tweet photo. 🔥 KAYNES TECH — BIG MOVE ZONE 👀

Current: 3685

Above 3750 → 3820 → 3900
3645–3700 is the key support zone.

Below 3645 → 3580 → 3500

Live updates
https://t.co/rvvWtKhPvo

Wait for confirmation

#KAYNES #NIFTY #NIFTY50 #StockMarket #KaynesTechnology https://t.co/fVNauLosKy

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Business Today

@business_today

about 1 month ago

EMS Stocks: Can India’s Electronics Boom Drive More Gains? Watch: https://t.co/pq4vO5mHMP | #EMSStocks #DixonTechnologies #KaynesTechnology #AmberEnterprises #BusinessToday @sakshibatra18

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