Kaynes, PG Electroplast tank up to 13% on Monday; EMS stocks extend losses

Kaynes Technology tumbled 27% in 3 days after a domestic institution flagged inconsistencies in FY2025 disclosures, sparking panic despite management clarifications.

Kaynes Technology, PG Electroplast share price today

 

Shares of electronics manufacturing services (EMS) Kaynes Technology and PG Electroplast tanked up to 11 per cent on the BSE in Monday’s intra-day trade, extending Friday’s decline on negative news flow.

 

Kaynes Technology plunged over 13 per cent to register a fresh 52-week low at ₹3,788 on the back of heavy volumes. It was quoting close to its 52-week low of ₹3,835 touched on February 11, 2025. The average trading volumes at the counter jumped over six-fold, with a combined 9.62 million equity shares changing hands on the NSE and BSE till 02:17 PM.

 

Share price of PG Electroplast dipped 6 per cent to ₹522.25 on the BSE in intra-day trade. In the past two trading days, the stock has slipped 10 per cent. In comparison, the BSE Sensex was down 0.82 per cent at 85,011.

 

Why are EMS stocks under pressure?

 

In the past three trading days, share price of Kaynes Technology plummeted 27 per cent after the firm said it had “inadvertently not disclosed” some of the related-party transactions in the standalone financial statements of the company. The company, however, said that these transactions were not required to be disclosed under the consolidated accounting standards as per the Indian Accounting Standards.

 

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India, having capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) services.

 

Last week, Kotak Institutional Equities flagged in a report inconsistencies in the company’s related party transactions, an ambiguous accounting treatment of goodwill or reserve adjustments under acquisitions, and sharp additions to intangibles for technical know-how, among other issues at the company.

 

According to Kotak Institutional Equities, Kaynes acquired Iskraemeco and Sensonic (54 per cent stake) in FY25 for a consideration of ₹88.3 crore, recognizing a goodwill of ₹114 crore. However, the company's FY25 consolidated balance sheet does not show a corresponding increase in goodwill. Separately, the brokerage firm observed inconsistencies in the disclosures made by the standalone entity and various subsidiaries on inter-company related transactions for the year and in year-end balances.

 

CLICK HERE FOR Kaynes Technology clarification

 

Meanwhile, share price of PG Electroplast dropped even as the company clarified that the information and claims in a report published in the HDFC Sky Platform on Friday, December 5, 2025 were factually inaccurate, unsubstantiated, and not reflective of the company's actual financial position and operational performance.

 

The company clarified that it has consistently complied with all applicable disclosure requirements under SEBI (LODR) Regulations, 2015, and all material information is disclosed to the Stock Exchanges in a timely manner.

 

The company further said that it has formally communicated with HDFC Securities requesting a review and rectification of the inaccuracies contained in the said article. CLICK HERE FOR DETAILS

 

Axis Direct technical view on Kaynes, PG Electroplast

 

Kaynes Technology tumbled after a domestic institution flagged inconsistencies in FY2025 disclosures, sparking panic despite management clarifications. The derivatives structure highlights bearish conviction, with call writers dominating and put buyers hedging, reinforcing pressure on the downside, the Axis Direct said in daily derivatives report.  Kaynes Technology, as of today, was placed under futures & options ban period as the market-wide limit was hit.

 

Meanwhile, PG Electroplast extended its correction after analyst’s flagged leverage and cash flow concerns. The positioning suggests call buyers remain active while put writers retreat, pointing to fragile sentiment and limited conviction in recovery, the brokerage firm said.