Kaynes Technology Shares Plunge: What's Behind the Sharp Decline?

Kaynes Technology India's Stock Takes a Hit

Kaynes Technology India's shares have dropped more than 10% on December 10, following a series of target price cuts by brokerages. This marks the fifth time in six consecutive sessions that the stock has fallen.

Sharp Selloff Begins

The sharp selloff began after Kotak Institutional Equities raised concerns over inconsistencies in the company's related-party disclosures. Kaynes Tech shares have now fallen to Rs 3,881 apiece.

Brokerages Weigh In

Nomura has maintained its 'Buy' rating on Kaynes Tech, but reduced its target price to Rs 5,454 from Rs 8,478, implying an upside potential of nearly 26% from the stock's previous closing price.

Kotak Securities, on the other hand, has maintained its 'Reduce' rating and reduced its target price to Rs 4,150 from Rs 6,180, implying a downside potential of more than 4% from the stock's previous closing price.

Prabhudas Lilladher remains bullish on the stock, maintaining its 'Buy' rating and a target price of Rs 5,624 per share, implying an upside potential of nearly 30% from the stock’s previous closing price.

Macquarie's Take

Macquarie has maintained its 'Outperform' rating on Kaynes Tech shares, with a price target of Rs 7,700 apiece, implying an upside potential of nearly 78% from the stock's previous closing price of Rs 4,331 per share.

The international brokerage noted that Kaynes Tech accepted disclosure shortfall in its analyst call on Monday, but doubts have been raised on several aspects.

JPMorgan's Stance

Kaynes Tech shares have emerged as the cheapest stock in JPMorgan's coverage after the sharp selloff. The international brokerage has reiterated its 'Overweight' stance on the stock.

What's Next?

Kaynes Technology issued a clarification on December 5, stating that the inconsistencies in its related-party disclosures were inadvertently not disclosed in the standalone financial statements. The company has rectified the issue and noted it for future compliance.

Kaynes Tech shares have fallen nearly 40% in the past one month and are down around 49% in 2025 so far, with a market capitalization of nearly Rs 29,130 crore.

Key points to note:

• Stock performance: Kaynes Tech shares have fallen more than 10% on December 10.
• Brokerage ratings: Nomura, Kotak Securities, Prabhudas Lilladher, and Macquarie have weighed in on the stock with varied ratings and target prices.
• Market capitalization: Kaynes Tech's market capitalization stands at nearly Rs 29,130 crore.
• Related-party disclosures: The company has rectified inconsistencies in its related-party disclosures and noted it for future compliance.