Shares of Kaynes Technology India Ltd. experienced a significant downturn, hitting a fresh 52-week low following the announcement of its latest quarterly earnings. The stock fell 4.69 percent to Rs 3,182.55 during Friday's trading session, though it later recovered slightly to trade around Rs 3,290. This decline contributes to a substantial 47.30 percent fall over the past six months for the electronics manufacturing services (EMS) provider.
Brokerages Turn Cautious on Kaynes Technology
Following the Q4 results, several brokerage firms have adopted a cautious stance on Kaynes Technology, citing missed revenue guidance and operational challenges.
Equirus Securities Downgrades Stock
Equirus Securities noted that Kaynes Technology missed its earlier FY26 revenue guidance of Rs 4,100 crore, primarily due to delays in key government-linked projects and a slowdown from a major electric vehicle (EV) client. The company's FY26 revenue came in at Rs 3,600 crore, marking a 33 percent year-over-year increase but still 14 percent below Equirus's estimates.
“Management has materially lowered its industry growth estimates, guiding for ~30 per cent revenue growth in FY27. We remain sceptical of Kaynes achieving its stated $1 billion (~Rs 8,200 crore) revenue aspiration by FY28,” Equirus stated, building in an FY28 revenue of Rs 6,600 crore.
Citing intensifying operating performance and balance-sheet stress, including negative operating cash flow (OCF), stretched working capital, and rising leverage, Equirus downgraded Kaynes Technology's stock to 'Reduce' from 'Add'. The brokerage also sharply cut its September 2027 target price to Rs 3,100, down from the previous March 2027 target of Rs 4,120, and slashed FY27/FY28 earnings per share (EPS) by 18 percent and 15 percent, respectively.
Nuvama Institutional Equities Flags Concerns
Nuvama Institutional Equities also highlighted weaker-than-expected Q4 performance, with Kaynes missing guidance on revenue, OCF, and working capital levels. The company attributed these misses to geopolitical disruptions impacting order flows, execution, and supply chains.
In response to the volatile market environment, Kaynes Technology now forecasts growth at twice the industry average (estimated at 16-18 percent for FY27), but refrained from providing explicit absolute revenue or growth guidance. Nuvama maintained its 'Hold' rating on the stock but reduced its March 2027 target price to Rs 3,150 from Rs 3,550, adjusting FY27E/28E/29E EPS by 1–9 percent.
Investor Outlook
Kranthi Bathini, an Equity Strategist at WealthMills Securities, advised caution for investors following the sharp correction. He noted that the quarterly results fell short of expectations, making the stock suitable primarily for investors with a high-risk appetite. Those with a long-term investment horizon, however, may consider holding their positions.