The shares of Kaynes Technology India jumped more than 6 percent on December 11, marking a sharp rebound after the recent selloff.
The shares of the company surged to an intraday high of Rs 4,129 apiece on Thursday. The shares of the company crashed around 40 percent in just one month as Kotak Institutional Equities raised concerns over inconsistencies in the EMS player's related-party disclosures.
The stock then pared some gains to close 3.5 percent higher at Rs 4,027.50 apiece. The shares of the company have now closed in the green in only two out of six consecutive sessions.
Brokerages on Kaynes Tech:
ICICI Direct views the issues highlighted by Kotak as disclosure-related discrepancies with no fraudulent intent. Hence, this is not expected to have any financial impact on the company, it said, adding that the firm's growth story remains intact.
However, these issues underscore the need for improved transparency and consistency in the company's reporting practices as these factors create trust issues and impact the multiple stock commands, the brokerage said. "We maintain BUY rating with a revised target price at 6,400, valuing the stock at 53x P/E on FY28E EPS," it added.
The latest target price implies an upside potential of more than 64.5 percent over the stock's previous closing price.
Prabhudas Lilladher 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 45 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 98 percent from the stock's previous closing price.
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.
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 more than 40 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 an upside potential nearly 7 percent from the stock's previous closing price.
Kaynes Tech share price:
Kaynes Tech shares have fallen around 27 percent in the past six months, and are down over 46 percent in 2025 so far. This comes after the stock rallied over 447 percent in the past five years.
Its P/E ratio currently stands at over 82.
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