Elara Capital believes that the recent market reaction to Kaynes Technology accounting inconsistency was disproportionate and shall have no material impact on the company's earnings.
Kaynes' stock has fallen about 30 per cent over the past month as against a 1.4 per cent rise in the Nifty, largely on worries around accounting and collections in the smart-meter business
Kaynes Tech stock has recently taken a hit following concerns around the company's accounting disclosures, which made market participants nervous
Till 01:31 PM on Wednesday; a combined 10.33 million equity shares representing 15.4 per cent of total equity of Kaynes Technology changed hands on the NSE and BSE.
Shares of Kaynes Technology were up 14 per cent at ₹4,328 on the BSE in intra-day trade as the stock recovered 17 per cent from its 52-week low of ₹3,713.75 hit today.
Kotak Institutional Equities, last week, flagged in a report inconsistencies in Kaynes Tech's related party transactions, an ambiguous accounting treatment of goodwill, among other issues
Kaynes Technology tumbled 27% in 3 days after a domestic institution flagged inconsistencies in FY2025 disclosures, sparking panic despite management clarifications.
The company, however, said that these transactions were not required to be disclosed under the consolidated accounting standards as per the Indian Accounting Standards
In the past one month, Kaynes Tech stock has tanked 31 per cent as compared to 2.3 per cent rise in the BSE Sensex
Thus far in the calendar year 2025, the BSE Smallcap index has underperformed the market by falling 8%, as against 9% rally in the BSE Sensex and 0.3% decline in the BSE Midcap index.
Kaynes Technology India outlook: Analysts expect margins to remain capped in the near term till the operations from new ventures of OSAT and PCB manufacturing get stabilised.
At 12:26 PM, the BSE Sensex was up 0.21 per cent as compared to 0.22 per cent decline in the BSE Midcap index and 0.29 per cent fall in the BSE Smallcap index.
Nuvama maintains 'Hold' on Kaynes citing valuations, while Emkay highlights strong FY26 growth, a robust order book, and expansion across EMS, OSAT, PCB, and satellite projects.
The Indian government has approved the first batch of seven projects totaling over ₹5,500 crore under ECMS i.e. electronics components manufacturing scheme.
Stocks to Watch today: Colgate, Hindustan Unilever, Defence stocks, Vedanta, Kaynes Technology, NTPC Greent, and Indian Hotels are among the stocks to watch today, October 24, 2025
Amber and Syrma are primarily targeting printed circuit board (PCB) manufacturing, while Dixon is focused on backward integration in mobile value chains, specifically camera and display modules.
Kaynes Technologies shares rose for the second day and currently trade at the highest level since January 6
Shares of Kaynes Technology India have appreciated nearly 8 per cent in the last one month, 64 per cent in the past six months, and 43 per cent over the last one year
Motilal Oswal believes that electronic manufacturing services (EMS) companies like Kaynes Tech have strong ties with Chinese component manufacturers
Kaynes Technology share price rose 3.4 per cent and logged an intra-day high at ₹6,515 per share on BSE after arm signed MoU with Government of Tamil Nadu