Kaynes Technology India shares have plummeted over 20% in just two trading sessions following disappointing Q4FY26 results that missed analyst expectations. According to reports from The Financial Express, the stock has collapsed 27% in the last five trading sessions and fallen 18% in the past month. The company's shares have now erased 47.5% of investors' wealth over the last six months, reflecting sustained selling pressure from market participants. The latest decline comes as brokerages continue to downgrade the stock over cash flow concerns, highlighting the ongoing investor concerns about the company's financial position.
Despite the recent selloff, Jefferies has issued a 'buy' rating on Kaynes Technology with a target price of ₹5,000, representing significant upside potential from current levels. As reported by Business Today, this contrarian stance stands in stark contrast to the widespread downgrades from other major brokerages. The rating suggests that Jefferies sees value in the current depressed price levels, potentially positioning the stock for a potential rebound despite the ongoing cash flow concerns.
Nomura has slashed Kaynes Technology's target price to ₹3,720 from ₹4,992, implying an upside of just 11.5% from current levels. As reported by The Financial Express, the brokerage downgraded the stock to 'Neutral' from 'Buy' and now prefers Dixon Technologies (India) in the sector. Nomura highlighted that the scale-down in the smart meter segment has been slower than anticipated, with pending orders expected to drag net working capital in H1 FY27. The brokerage noted that given significant investment requirements across new projects, net cash stands at only ₹200 crore at FY26-end, with high dependence on government subsidy creating balance sheet strain.
Nuvama Institutional Equities maintained its 'Hold' rating but cut the target price to ₹3,150 from ₹3,550, implying a downside of 5.6%. According to The Financial Express, the brokerage house cited weaker-than-expected Q4 results that missed guidance on revenue, operating cash flow, and working capital levels. Nuvama attributed this to geopolitical disruptions affecting order flows, execution, and supply. The company now guides for 2x industry growth (estimated at 16-18% for FY27) while refraining from explicit revenue guidance.
According to The Financial Express, Kaynes Technology reported a consolidated net profit of ₹91 crore for Q4 FY26, compared to ₹116 crore in the same period last year, representing a 22% year-over-year decline. The company's revenue from operations rose 26% YoY to ₹1,243 crore for the quarter, while total income surged 28% to ₹1,284 crore compared to ₹1,005 crore in Q4 FY25. However, total expenses increased 33% YoY to ₹1,144 crore from ₹863 crore in the same period last year, with cost of materials consumed rising 44% YoY to ₹921 crore.
