Kaynes Technology share price: Kaynes Technology share price recovered on Tuesday, December 9 after 4 straight sessions of losses. The stock jumped as much as 4.2% to its day’s high of ₹3958.50. The stock rebounded after hitting its 52-week low of ₹3,713.75 in early deals today.
In the last 4 sessions, the scrip has crashed almost 30%.
The sharp sell-off in Kaynes Technology further extended into Monday’s session, December 8, with the stock crashing another 7.4% to ₹4,030 apiece, the lowest level since April, as investor sentiment towards the counter remained deeply subdued. It is still down 49% from its 52-week high of ₹7,824.95, hit in January 2025.
The stock has fallen 38% in last 1 year, 31% in past 6 months, 45% in last 3 months and 27% in last 1 month.
The exchange also sought clarification from Kaynes on December 8 regarding a Moneycontrol report titled “Kaynes Tech to change auditor as it admits to reporting lapse, clarifies goodwill and receivables.”
Brokerages split, but multibagger hopes alive
Macquarie said Kaynes must demonstrate stronger cash flow, organic growth, recognition of cash subsidies, and a change of auditors to rebuild trust. It maintained its “outperform” rating with a target price of ₹7,700, implying an upside of around 100% from Monday’s close.
Macquarie noted that management acknowledged disclosure lapses in an analyst call but denied wrongdoing. The brokerage said “the management clarification sounded reasonable, but doubts have been raised on so many aspects that the water has been muddied, requiring visible improvements in internal systems before confidence fully returns.”
It added that Kaynes has corrected its earlier notes, identified the root cause of the issue, and begun implementing automated related-party checks.
JPMorgan, which last week told investors not to “fish for the dip,” released a fresh note highlighting that Kaynes is now the cheapest stock under its coverage, with a PEG ratio of 0.7x. The brokerage retained its ‘overweight’ rating and set a ₹7,550 target, also indicating nearly 100% potential upside.
However, JPMorgan flagged stretched working capital and receivables, while emphasising that “there is no change in Kaynes Tech’s fundamentals, but the recent correction has materially improved its valuation appeal, making it one of the most attractive opportunities in the sector.”
What Kotak alleged — and how the company responded
Kotak Institutional Equities said it found multiple mismatches across disclosures from Kaynes Technology, Kaynes Electronics Manufacturing, and Iskraemeco for FY2025. These discrepancies, Kotak wrote, raised concerns over balance sheet representation and cash flow clarity.
Kotak pointed to the Iskraemeco and Sensonic acquisitions, noting that while ₹114 crore of goodwill was recognised, the FY25 balance sheet showed no matching increase—only a small negative adjustment and higher general reserves. It also highlighted inconsistencies between purchases, payables, and receivables across the group entities.
In its clarification, Kaynes explained that under Ind AS 103, customer contracts acquired through Iskraemeco were recognised as intangible assets, amortised over the contract period, and offset against goodwill, which is why goodwill did not rise materially in FY25.
On related-party issues, Kaynes admitted that while these transactions were correctly eliminated in consolidated accounts, they were inadvertently omitted from standalone filings—an error now corrected.
The company also responded to concerns about borrowing costs, stating that when bill discounting is included, its true average borrowing cost is around 10%, not the 17.7% implied in certain interpretations.
Reaffirming its stance on transparency, the company said, “we respect independent market research, but it is our responsibility to provide accurate information so investors can evaluate the company with confidence.”
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