The shares of Kaynes Technology India jumped more than 14 percent on December 9, snapping a four-session losing streak as positive brokerage notes uplifted investor sentiment.
The stock closed at Rs 4,356 apiece on Tuesday. The sharp rebound comes after the stock declined nearly 30 percent over the past four sessions, causing huge market cap erosion for the EMS player.
Macquarie on Kaynes Tech:
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 more than 102 percent from the stock's previous closing price of Rs 3,807 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.
JPMorgan on Kaynes Tech:
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 and are likely to change the auditor,” said Praveen Sahay, analyst at PL Capital.
Elara Securities' post-call note added that Kaynes intends to strengthen internal reporting by introducing software that ensures automatic contra-entry checks and may 'contemplate replacing current auditors with more reputed firms'.
Kaynes Tech share price history:
Kaynes Tech shares have fallen nearly 33 percent in the past one month, and are down around 43 percent in 2025 so far. Its P/E ratio stands at over 80.
The company currently has a market capitalization of nearly Rs 29,200 crore.
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