Kaynes Tech shares slide 9% as MD gets Sebi notice; stock down 44% in 2025

Kaynes Technologies' counter plunged as much as 9.1 per cent in intraday deals to Rs 3,898 per share, witnessing the biggest fall since January 28 this year

Shares of Kaynes Technologies tumbled 9 per cent in trade on Wednesday after its managing director received a showcase notice from the market regulator for violations in the maintenance of a structured digital database. 

 

Kaynes Technologies' counter plunged as much as 9.1 per cent during the market opening to Rs 3,898 per share, the biggest fall since January 28 this year. The stock recovered as the trade progressed and was hovering at Rs 4,210 levels, down 1.88 per cent at 10 AM, compared to a 0.32 per cent decline in Nifty50. The counter has fallen by 44 per cent so far in 2025, mainly triggered by relatively modest third-quarter earnings growth. The fall in the stock price this year follows an 184 per cent gain it made in 2024.  

 

In a notice, the Securities and Exchange Board of India (Sebi), alleged Ramesh Kunhikannan, managing director, Kaynes Technologies of suspected violations in the maintenance of the structured digital database of financial results for the period ended March 31, 2023. 

 

The company said that it will "timely" respond to the market regulator's notice. The end-to-end and IoT solutions-enabled integrated electronics manufacturer is "reviewing the contents of the Notice and will take all appropriate legal and procedural steps," it said in an exchange filing on Tuesday. "The company, noticee and all concerned remain committed to fully cooperating with Sebi to resolve this matter in accordance with the applicable legal and regulatory framework," it said. 

 

December quarter earnings

 

The company reported revenues of Rs 509 crore, up by 30 per cent year-on-year (Y-o-Y), and 15.6 per cent quarter-on-quarter (Q-o-Q), as against a run-rate of around 60 per cent 9MFY25. The company reported around 62 per cent revenue compound annual growth rate (CAGR) over FY21-24.  ALSO READ: Adani Green Energy gains 2% as arm commissions 250 MW solar project in AP

 

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) margin stood at 14.2 per cent during the quarter, compared to 13.7 per cent in Q3FY24. For 9MFY25, the margin was at 14.0 per cent. The company's profit after tax (PAT) was reported at Rs 66.50 crore which is 47.1 per cent higher YoY, and 10.5 per cent higher QoQ. For 9MFY25, the company posted a 74 per cent YoY jump in PAT at Rs 177.4 crore.

 

Out of the 23 analysts tracking the company, 17 have a 'buy', five have a 'hold', and one has a 'sell' call, according to Bloomberg data. Analysts tracked by Bloomberg have a consensus 12-month target price of Rs 5,512, an upside of 40 per cent.