Kaynes Tech shares drop 10% as brokerages cut target prices: What lies ahead?

Kaynes Technology share price

The shares of Kaynes Technology India dropped more than 10 percent on December 10 as brokerages cut target prices after the recent selloff. The stock has now fallen in five out of six consecutive sessions.

Kaynes Tech shares dropped to Rs 3,881 apiece on Wednesday. The sharp selloff began after Kotak Institutional Equities raised concerns over inconsistencies in the EMS player's related-party disclosures.

Brokerages on Kaynes Tech:

Nomura maintained its 'Buy' rating on Kaynes Tech, but reduced its target price for the stock to Rs 5,454 from Rs 8,478. The latest target price implies an upside potential of nearly 26 percent from the stock's previous closing price.

Kotak Securities meanwhile maintained its 'Reduce' rating on the stock, and reduced its target price to Rs 4,150 from Rs 6,180. The latest target price implies a downside potential more than 4 percent from the stock's previous closing price.

Prabhudas Lilladher however remained bullish on the stock, maintaining its 'Buy' rating and a target price of Rs 5,624 per share. This implies an upside potential of nearly 30 percent from the stock’s previous closing price.

It however lowered its FY26/FY27/FY28E earnings estimate by 1.8 percent/11.5 percent/7.8 percent.

Macquarie has maintained its 'Outperform' rating on Kaynes Tech shares, with a price target of Rs 7,700 apiece. This implies an upside potential of nearly 78 percent from the stock's previous closing price of Rs 4,331 per share.

The international brokerage said that Kaynes Tech accepted disclosure shortfall in its analyst call on Monday, CNBC-TV18 reported. "The management clarification sounded reasonable, but doubts have been raised on so many aspects that water has been muddied," the brokerage wrote.

"Kaynes has set an aggressive path for higher value addition, international expansion, and backward integration that should establish its position as a leading ESDM company in India," it added.

Kaynes Tech shares have emerged as the cheapest stock in JPMorgan's coverage after the sharp selloff, Economic Times reported. The international brokerage in its note reiterated its 'Overweight' stance on the stock.

This comes days after the JPMorgan advised investors to avoid "bottom fishing" in the shares of Kaynes Technologies, as it does not see a clear, strong catalyst for the stock till it reports its third quarter results.

Kotak's allegations, Kaynes' clarification:

In its note released on December 3, Kotak Institutional Equities said that it has identified multiple mismatches between the disclosures made by Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco for the financial year 2025.

According to the brokerage, Iskraemeco's filings show purchases of Rs 180 crore from Kaynes Electronics Manufacturing, but this transaction is not reflected in Kaynes Electronics Manufacturing’s own related-party disclosures. Iskraemeco also reported year-end payables of Rs 320 crore to Kaynes Technology and Rs 180 crore to Kaynes Electronics Manufacturing, along with receivables of Rs 190 crore from Kaynes Technology. These balances, Kotak noted, do not appear in the corresponding disclosures of Kaynes Technology or Kaynes Electronics Manufacturing.

Kaynes Technology issued a clarification on December 5, stating that these were inadvertently not disclosed in the standalone financial statements. "This has been rectified and has been noted for future compliance. This transaction was part of the overall financial statement in both the entities," the firm said.

Kotak further said that almost all of Iskraemeco's current receivables were shown as due from its parent company, with Rs 45.8 crore outstanding for more than a year. The brokerage said the inconsistencies warrant closer scrutiny, as they raise questions on inter-company transactions and year-end balances within the group.

Kaynes Tech admits to accounting lapses:

Kaynes Technology on Monday admitted that a related-party transaction with its smart-metering subsidiary Iskraemeco had not been disclosed in its standalone FY24 financials, though it was correctly reported in the consolidated results. "They accepted it as a mistake. The auditor also missed it. They said they will rectify the disclosure,” said Praveen Sahay, analyst at PL Capital.

Kaynes Tech share price history:

Kaynes Tech shares have fallen nearly 40 percent in the past one month, and are down around 49 percent in 2025 so far. Its P/E ratio stands at over 91.

The company currently has a market capitalization of nearly Rs 29,130 crore.

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