Kaynes Technology shares jump over 3% as unit inks Rs 4,995 crore investment MoU with Tamil Nadu

Economic Times

05-08-2025

Shares of Kaynes Technology jumped 3.5% to their day's high of Rs 6,515 on the BSE on Tuesday after its wholly owned subsidiary signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a proposed investment of Rs 4,995 crore over six years to set up new manufacturing facilities in the state.
ADVERTISEMENT The electronics component maker said on Monday that the investment, to be undertaken by Kaynes Circuits India Private Limited, will include greenfield projects and capacity expansions. The state government will facilitate discussions around financial incentives, industrial policies, and structured assistance packages.
In a stock exchange filing, Kaynes Technology said the Tamil Nadu government, through its nodal agency Guidance, has "agreed to extend necessary support in terms of infrastructure facilitation and regulatory clearances in accordance with applicable laws and policies."
The announcement comes on the heels of strong first-quarter earnings. Net profit for the three months ended June rose 47% year-on-year to Rs 74.6 crore. EBITDA also rose sharply by 68% to Rs 113 crore in Q1 FY26.Margins improved to 16.7%, up from 13.3% in the same period last year, reflecting better operational efficiency. Revenue for the June 2025 quarter stood at Rs 673.4 crore, marking a 33.6% year-on-year increase.
ADVERTISEMENT Shares of Kaynes Technology ended Monday's session down 1.15% at Rs 6,297.00 on the BSE. The stock is down 17% so far in 2025 but remains up 9% over the past three months.Technically, the stock is trading above all its key simple moving averages (from 5-day to 200-day), indicating bullish momentum across short- to long-term time frames. The Relative Strength Index (RSI) stands at 62.9, suggesting the stock is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 38.6, staying above both the center and signal lines, another sign supporting continued bullish sentiment.
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