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Kaynes Tech Falls Again After Brief Rally as Kotak Slashes Target

Fresh price-target cuts alongside lingering working-capital questions reignited selling after a brief rebound.

Overview

  • Shares dropped 6–8% on Dec. 10 to an intraday low near Rs 3,980, giving back much of Tuesday’s 14% jump and leaving the market value around Rs 27,000 crore.
  • Kotak Institutional Equities kept a reduce rating and cut its target to Rs 4,150, flagging unclear intangible accounting, elevated working capital, and risk to FY26 guidance.
  • Nomura lowered its target to Rs 5,455 but maintained a buy call, saying cash-flow improvement remains a key monitorable and that recovery outside smart meters could be a catalyst.
  • Kaynes denied any auditor-change talks and reiterated there was no ambiguity in FY25 accounts, while acknowledging and correcting a standalone disclosure omission tied to Iskraemeco and explaining higher contingent liabilities.
  • Global brokers remain split, with JPMorgan and Macquarie retaining overweight/outperform calls and Rs 7,550–7,700 targets, as focus turns to receivables, net working capital at 116 days, and management’s goal to turn operating cash flow positive by year-end.