Macquarie’s Bullish Call Sends Kaynes Tech Soaring 10% After a Four-Day Slide

Kaynes Tech Rebounds 10% After Sharp Selloff as Global Brokerages See Big Upside Potential

Shares of Kaynes Technology India Ltd staged a powerful comeback on December 9, rising nearly 10% and ending a four-day losing streak that had wiped out significant market value. The rebound came after positive commentary from top global brokerages, which helped restore some confidence in the electronics manufacturing services (EMS) company following a steep and rapid decline.

A Narrative of Recovery After a 30% Slide in Four Sessions

The Kaynes Tech share price, which had slipped almost 30% over the previous four sessions, was seen trading at ₹4,174.50 on Tuesday. The sudden and sharp selloff created deep anxiety among investors, especially as concerns emerged over disclosures and accounting inconsistencies flagged by institutional analysts.

However, renewed optimism from brokerages such as Macquarie, JPMorgan, and Elara Securities lifted sentiment, pushing the stock into positive territory after a turbulent week.

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Macquarie Projects a 102% Upside, Maintains ‘Outperform’ Rating

In one of the strongest endorsements yet, Macquarie maintained its Outperform rating on Kaynes Tech and set a ₹7,700 price target, implying a massive 102% upside from the previous close of ₹3,807.

The brokerage acknowledged that Kaynes Tech admitted to disclosure shortfalls during its analyst call, an issue that had triggered doubts among investors. Macquarie noted that while the clarification “sounded reasonable,” the evolving situation had “muddied the waters” and warranted close monitoring.

Despite the temporary uncertainty, Macquarie remains confident in the company’s strategic roadmap. Its note highlighted Kaynes’ aggressive plans for higher value addition, global expansion, and backward integration, arguing that these initiatives position the company strongly in India’s fast-growing ESDM (Electronics System Design and Manufacturing) sector.

JPMorgan Calls Kaynes Tech the ‘Cheapest in Coverage’ After Selloff

Following the steep correction, JPMorgan described Kaynes Technology as the “cheapest stock” in its sector coverage. The global brokerage reiterated its Overweight rating, even though it had recently urged investors not to rush into bottom-fishing until a clearer catalyst emerged—likely the company’s Q3 FY25 results.

The contrasting tones in JPMorgan’s commentaries underscore the complexity facing investors: while the valuation has become more attractive, near-term uncertainties remain tied to disclosures and financial clarity.

Kotak Flags Accounting Mismatches; Kaynes Issues Clarification

The recent volatility was triggered largely by Kotak Institutional Equities’ note on December 3, which pointed to several mismatches between disclosures from Kaynes Technology, Kaynes Electronics Manufacturing, and the company’s subsidiary Iskraemeco for FY25.

Among Kotak’s key observations:

• Iskraemeco reported purchases of ₹180 crore from Kaynes Electronics Manufacturing that did not appear in Kaynes’ own disclosures.

• The subsidiary also reported year-end payables totalling ₹320 crore to Kaynes Tech and another ₹180 crore to Kaynes Electronics Manufacturing.

• It listed receivables of ₹190 crore from Kaynes Tech—again, figures missing from corresponding filings.

These inconsistencies raised concerns around inter-company balances and transparency.

Kaynes Tech responded on December 5, stating that the missing disclosures were an inadvertent omission in its standalone financials and had now been rectified. The company stressed that the transactions were accurately captured in its consolidated statements.

Kaynes Admits Accounting Lapse; Auditor Replacement on the Table

The matter escalated further when Kaynes Tech acknowledged during its analyst call that a related-party transaction with Iskraemeco had indeed been omitted from the standalone FY24 results.

Analyst Praveen Sahay of PL Capital noted that the management conceded it was a “mistake” and that the auditor had missed it as well. Kaynes indicated plans to correct the disclosure and is considering appointing a more reputed audit firm.

A note from Elara Securities added that the company intends to bolster internal reporting systems by implementing automated contra-entry checks through new software tools.

Stock Performance: A Steep Fall Before the Rebound

Despite today’s recovery, Kaynes Tech shares are still down nearly 36% in the past month and have fallen more than 45% in 2025 so far. The company’s P/E ratio remains above 80, reflecting the premium valuation investors had been willing to pay before concerns surfaced.

Kaynes currently commands a market capitalization of around ₹27,900 crore, making it one of India’s largest listed EMS companies.

A Critical Phase for Investor Sentiment

As brokerages continue to debate the trajectory of Kaynes Technology, investors remain focused on two key triggers:

1. Resolution of all disclosure-related concerns, and

2. The company’s Q3 performance, which may provide clarity on operational momentum and margin resilience.

For now, the strong endorsement from leading global brokerages offers some relief, but the coming weeks will be crucial in determining whether the Kaynes Tech share price stabilizes—or faces renewed volatility.

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