Kaynes Tech shares see sharp fall, decline over 6% to snap two-day gaining streak

Shares of Kaynes Technology Ltd. fell as much as 6.5% on Tuesday, January 6, marking their biggest single-day fall in nearly a month. The stock has also snapped a two-day losing streak in the process.

No significant announcement has been made by the company on the exchanges, which can be attributed to the sharp fall seen in the stock.

Brokerage firm Jefferies, maintained its "buy" rating on the stock on Tuesday, but cut its price target to ₹5,940 from ₹7,780 earlier. The revised price target also implies a 55% upside potential from current levels.

Before the fall, the stock was trading with volumes that were significantly below their 20-day average, with only 8 lakh shares traded compared to the 20-day average of 36 lakh shares.

In an interaction with CNBC-TV18 on December 18 last year, Jairam Sampath, the CFO of Kaynes Tech had mentioned that the Mitsui deal will bring a lot of value and the relative contribution of the smart metering business will come down as the other segments grow.

Sampath also said that they are well positioned to deliver on the earlier guidance and that the company may consider a dividend next year as a confidence boosting measure.

26 analysts have coverage on Kaynes Technology, of which 14 have a "buy" rating, eight say "hold" and four have a "sell" rating on the stock.

Shares of Kaynes Tech are trading 6.5% lower at ₹3,736.1. The stock made a 52-week low of ₹3,711 during this sharp fall. Along with Kaynes Tech, shares of its other EMS peers, Amber Enterprises and Dixon Technologies have also declined between 1% to 2%.