Kaynes Tech shares fall another 10% after bearish analyst cuts price target further

Shares of Kaynes Technology Ltd. fell another 10% on Wednesday, December 10, after Kotak Institutional Equities and Nomura both cut their price targets on the stock after the recent sell-off.

While Nomura has cut its price target on Kaynes Tech to ₹5,454 from ₹8,478 earlier, but maintained its "buy" recommendation, Kotak has maintained its "reduce" rating and cut its price target on the stock to ₹4,150 from ₹6,180.

Nomura's price target was among the highest on the street for Kaynes.

It was a Kotak note that had flagged off discrepancies in disclosures in Kaynes Tech, which had triggered a sharo sell-off in the stock across Friday and Monday, when the stock fell 12.5% each. The stock ended nearly 14% higher on Tuesday, and exited the F&O ban.

Exiting the F&O ban means that new positions can be taken in the stock.

Kotak wrote in its note on Wednesday that certain aspects with respect to intangible accounting and elevated working capital still remains unclear. It also said that the company's guidance for financial year 2026 is at risk.

Generation of positive operating cash flow in financial year 2026, improvement in internal controls, and timely execution of PCB and OSAT expansion will be crucial, Kotak's note said.

The management of Kaynes had clarified earlier in an analyst call that the company will turn cash flow positive by the end of the financial year and that the discrepancies in disclosures will not be repeated again.

Last week, JPMorgan had written in a note that while they remain "overweight" on the stock, it advised investors to avoid "bottom-fishing" in the stock as it cannot predict when the stock would make a bottom.

Shares of Kaynes Technology are trading 10% lower on Wednesday at ₹3,891.