Shares of Kaynes Technology resumed their losing run on Wednesday. A day after closing 15% higher, the stock slipped 6% to Rs 4076 in the current session. Market cap of Kaynes Technology fell to Rs 27,386 crore. The stock has lost 46% this year and fallen 36% in a year.
Total 6.20 lakh shares of the firm changed hands amounting to a high turnover of Rs 263 crore.
The stock had gained 40% in four sessions till Monday this week. The correction in the stock came after global brokerage Nomura cut price target to Rs 5,455 (from Rs 8,478) on 35x FY28F EPS, discounted to Dec-27F.
According to the brokerage, cash flow improvement remains a key monitorable; ex-smart meter growth recovery could serve as a catalyst. It maintained a buy call on the stock.
Kotak Securities also cut its price target to to Rs 4,150 from Rs 6,180 while maintaining its “reduce” rating on the stock.
The plunge in Kaynes Technology counter came after Kotak Institutional Equities raised concerns regarding inconsistencies in the company’s related-party disclosures for FY2025. In a note, Kotak said it had identified multiple mismatches between the disclosures made by Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco for FY2025.
Mysore-based Kaynes Technology is a leading end-to-end and IoT (Internet of Things) solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing services.
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