Kaynes Tech advances 6% on upbeat analyst views and strong growth narrative

Kaynes Tech Shares Bounce 6% as Brokerages Highlight Strong Structural Growth Outlook

Kaynes Technology India staged a notable rebound on Thursday, with the stock surging more than 6%, reversing part of the steep correction seen over the past month. The rise in Kaynes Tech shares comes after brokerages reiterated confidence in the company’s structural growth story, even as concerns around disclosure inconsistencies recently weighed on investor sentiment.

The stock climbed to ₹4,129, marking gains in only two of the past six sessions, yet breaking a downward streak that had erased nearly 40% of its value in one month. The selloff was triggered after Kotak Institutional Equities raised concerns over inconsistencies in related-party disclosures made by the electronics manufacturing (EMS) firm.

Brokerage Views Turn Supportive as Kaynes Tech Addresses Disclosure Gaps

Despite the concerns, several brokerages have maintained a positive stance on Kaynes Technology, noting that the issues flagged were disclosure-related and not indicative of fraudulent intent.

ICICI Direct believes that the discrepancies highlighted by Kotak were non-fraudulent disclosure gaps, with no expected financial impact on Kaynes Tech. The firm emphasized that the long-term growth story remains strong, backed by robust demand visibility in the EMS and ESDM segments.

The brokerage reiterated its BUY rating, revising its target price to ₹6,400, valuing the stock at 53x FY28E EPS—indicating an impressive upside potential of over 64.5% from the previous close.

However, ICICI Direct also underlined that such lapses reflect the need for greater transparency and consistent reporting practices, factors that influence investor confidence and valuation multiples.

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Prabhudas Lilladher and Macquarie Maintain Bullish Stance With High Targets

Prabhudas Lilladher remains constructive on the stock, maintaining a BUY rating with a target price of ₹5,624, implying nearly 45% upside. The brokerage, however, trimmed its FY26/FY27/FY28 earnings estimates by 1.8%, 11.5%, and 7.8%, respectively, to factor in near-term challenges.

Macquarie echoed the bullish outlook, reaffirming an Outperform rating with one of the highest targets on the street—₹7,700 per share. This suggests a potential 98% upside from current levels.

The global brokerage noted that Kaynes Tech acknowledged the disclosure shortfall during an analyst call earlier in the week. While the company’s responses were “reasonable,” Macquarie said the episode “muddied the waters” due to multiple layers of questions emerging around reporting clarity.

Macquarie added that Kaynes’ ambition to expand internationally, increase value addition, and deepen backward integration positions it strongly to emerge as a leading ESDM player in India.

JPMorgan Calls Kaynes Tech the ‘Cheapest in Coverage’ After Deep Correction

Following the sharp correction, JPMorgan highlighted that Kaynes Tech shares have now become the cheapest in its sector coverage, according to an Economic Times report. Despite previously advising investors to avoid “bottom fishing,” JPMorgan has reiterated its Overweight stance on the stock, noting that long-term fundamentals remain intact even if near-term catalysts are limited until the Q3 results are announced.

Mixed Views: Nomura Stays Positive While Kotak Maintains ‘Reduce’ Rating

Nomura has maintained its BUY rating but sharply reduced its target price from ₹8,478 to ₹5,454, implying over 40% upside. The brokerage said that while the structural story is intact, the recent developments necessitate a more conservative valuation approach.

In contrast, Kotak Securities maintained a Reduce rating, revising its target price to ₹4,150 from earlier ₹6,180, implying just about 7% upside over the previous close. Kotak was the first brokerage to flag the inconsistencies in related-party disclosures, triggering the initial market reaction.

Kaynes Tech Share Price: Sharp Declines Follow Years of Massive Gains

Despite Thursday’s rebound, Kaynes Tech shares remain significantly lower than their recent peaks.

• Down 27% in the past six months

• Down 46% in 2025 so far

• But up 447% over the last five years, highlighting the stock’s powerful long-term trajectory

The company currently trades at a P/E ratio of over 82, reflecting its premium valuation and high-growth expectations within the Indian EMS and ESDM sectors.

Conclusion: Rebound Shows Confidence, but Transparency Will Drive Future Valuations

The sharp recovery in Kaynes Tech shares underscores investor confidence in the company’s long-term structural growth story, supported by industry expansion, strategic initiatives, and strong demand outlook.

However, the episode also highlights the increasing importance of transparent, consistent, and accurate disclosures, especially for high-growth, high-valuation companies. While most brokerages remain bullish with significant upside projections, clarity in reporting and timely communication will play a decisive role in determining how the stock performs in the coming quarters.

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