Shares of Kaynes Technology India plunged over 12% on December 5, marking steep losses for the second consecutive day after Kotak Institutional Equities raised concerns about discrepancies in the company’s related-party disclosures. JP Morgan advised investors to avoid “bottom fishing” in the stock. The EMS firm’s shares closed at Rs 4,365, having touched an intraday low of Rs 4,311—the lowest in nearly eight months. Over two sessions, the stock has dropped nearly 17% since Kotak highlighted the alleged irregularities.
Kotak flagged mismatches in disclosures between Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco for FY2025. Iskraemeco reported Rs 180 crore in purchases from Kaynes Electronics Manufacturing, but this was absent from the latter’s disclosures. Similarly, year-end payables and receivables totaling hundreds of crores were not reflected across related entities. Kaynes clarified that these omissions were inadvertent and have been rectified, noting the transactions were included in the overall financial statements.
JP Morgan cited ongoing balance sheet and cash flow concerns and uncertainty on revenue growth, suggesting no immediate catalyst until Q3 results. Despite the downturn, the brokerage maintains an ‘Overweight’ rating with a Rs 7,550 target. The stock has fallen over 42% in 2025, with a P/E ratio above 105.
