Dixon Tech shares declined more than 23% in less than a month, partly due to the rub-off effect from peer Kaynes Tech's selloff.
Kaynes Technology share price: ICICI Direct views the issues highlighted by Kotak as disclosure-related discrepancies with no fraudulent intent.
Kaynes Technology share price: The sharp selloff in the stock began after Kotak Institutional Equities raised concerns over inconsistencies in the EMS player's related-party disclosures.
Kaynes Tech share price: The sharp rebound comes after the stock declined nearly 30% over the past four sessions, causing huge market cap erosion for the EMS player.
Kaynes Tech share price: In its note, Kotak Institutional Equities said that it has identified multiple mismatches between the disclosures made by Kaynes Tech, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco for FY25.
"At this juncture, I believe it is time for me to embark on a new professional journey to take up another exciting and challenging assignment," said Kaynes Tech's CEO Rajesh Sharma.
JPMorgan said that India's EMS space is a 'sunrise sector', and can continue to deliver strong growth given the China+1 strategy and 'Make in India' thrust.
Kaynes Tech share price: While the stock is down nearly 25% in 2025 so far, it had jumped nearly 51% in the past one year.
There will likely be equity dilution of approximately 4%, the channel reported
Experts suggested that Indian electronics manufacturing services (EMS) players may benefit relatively, as India’s tariff rate is lower than those on Vietnam and China.
The company has responded by saying it is currently reviewing the notice and will take 'all appropriate legal and procedural steps', including providing a timely response to the regulator.
Over the past month, the stock has experienced significant volatility, with a notable decline from its early January high. On January 28, shares of Kaynes Technology fell by over 11%, and in last one month, it is down by 35%.
Deepseek Impact: AI driven-electronics manufacturing services stocks are feeling the impact of a selloff in Nvidia shares, sparked by the rise of low-cost rival Chinese AI start-up DeepSeek.
The partnership integrates Sensonic’s fiber optic sensing technologies with Kaynes' track record in manufacturing and IoT innovation.
Morgan Stanley remains confident in the company’s core business, supported by customer acquisitions and favourable sector trends.
Iskraemeco India is into the business of supply, installation, operations and maintenance of smart meters. Last financial year, the company's turnover was Rs 65.42 crore.
The analysts added that the government’s push to encourage domestic manufacturing, led by multiple Production Linked Incentive (PLI) schemes remains the key enabler
The company said it is upbeat on its growth outlook, expects good traction from all verticals in FY25, setting it on track to exceed the estimated Rs 3,000 crore revenue target and EBITDA margin target of 15%.
Most of the recent initiatives of the company are priced into the stock
The Ministry has so far received seven applications for setting up semiconductor Fabs in India, three applications for setting up Display Fabs in India, and sixteen applications for setting up compound and ATMP facilities in India, as per the monthly achievement document for the April month by the MeitY
Kaynes Technologies' margins are industry leading and will further expand by 100 basis points in FY25, according to Morgan Stanley.
OSAT business appears to have priced in current valuation. Hence, approval delay may have an impact in the near term
At close, the Sensex was up 253.31 points or 0.34 percent at 73,917.03, and the Nifty was up 62.30 points or 0.28 percent at 22,466.10.
Kaynes Tech's consolidated net profit jumped 96.8 percent YoY in Q4FY24, while revenue from operations increased 74.8 percent YoY
CEO Raghu Panicker said the company plans to differentiate itself from other OSATs in India with and is planning roadshows in Malaysia and The Philippines to attract top talent.