Kinetic Engineering shares hit 5% upper circuit for 2nd day. Here's why

Shares of Kinetic Engineering hit 5 per cent upper circuit limit in Tuesday's trade, in addition to 5 per cent rise on Monday, after the company said it will  commence production of chassis and other assemblies for E-Luna.

Following the development, the scrip hit its upper circuit limit at Rs 100.60

E-Luna will be launched shortly by sister company Kinetic Green Energy & Power Solutions. Kinetic Engineering has developed all the major subassemblies for the E-Luna including the main chassis, main stand, side stand and swing arm and has set up a dedicated production line with an initial capacity of 5000 sets per month – just at the helm.

"With a growing electric market segment, and a preference towards load carrying vehicles, the E-Luna once again aims to check all the boxes with its offerings. The welding for these critical & various parts will be done through a brand new line of over 30 welding machines set up in an exclusive shop within the plant. All the assemblies will be fully finished, duly painted in its vast factory at Ahmednagar," Kinetic Engineering said during Monday's trading session.

To meet the requirements, KEL has also invested over Rs 3 crore in upgrading its paint shop and press & fabrication shops. The parts for E-Luna shall add significantly to KEL’s top line at about Rs 30 crores annual estimation, beginning first quarter next year, it said.

We expect this business to add over Rs 30 crores annually over the next 2-3 years as the volumes of the E-Luna increase. This will also help KEL to boost its presence in the EV segment. KEL is emerging as a one stop shop for all the major mechanical subassemblies for electric 2 & 3 wheelers, which have witnessed explosive growth over the past 12 months,” said MD Ajinkya Firodia.

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