Kaynes Technology India bounced back today surging close to 4% after a sharp slide that wiped out nearly 40% in just one month. The stock has been under pressure throughout 2025, with the share price is now down about 50% since January.
The brokerage has maintained a Buy rating with a target price of Rs 6,400, implying an upside of around 48% from current levels. According to the brokerage report, several concerns that rattled investors may have been “more about disclosure gaps than financial damage.”
Let’s take a look at the reasons why ICICI Direct is bullish –
ICICI Direct on Kaynes Technologies: A big miss in disclosures sparked panic
The recent sell-off began when investors spotted inconsistencies in the company’s Related Party Transaction (RPT) disclosures. Subsidiaries such as Iskraemeco had reported payables and receivables that did not appear in Kaynes Technology’s own filings. This fuelled worries about governance.
According to the brokerage report, the issue stemmed from clerical lapses rather than intent. As the report noted, “the overall profit and loss account and balance sheet is not misstated,” adding that the mismatches “seem negligence sort of error rather than anything on governance front.”
The brokerage further stated that “sub-par disclosure created misinterpretation rather than management’s malafide intention.”
ICICI Direct on Kaynes Technologies: Accounting inconsistencies but no financial hit, says brokerage
ICICI Direct pointed out that while the disclosures were incomplete, the financial statements themselves were not impacted.
The report added, “We believe the company missed these disclosures due to clerical errors and there didn’t lie any fraudulent intentions behind it as these errors don’t directly or indirectly impact the company’s financial statements.”
The explanation helped calm some nerves, but the market is still waiting for the company to improve transparency. As the brokerage puts it, “these factors create trust issues and impact the multiple the stock commands.”
ICICI Direct on Kaynes Technologies: Heavy capital expenditure plan raises execution risks
Kaynes Technology has laid out an aggressive capital expenditure (capex) roadmap for the next few years. This includes investments into electronics manufacturing services, semiconductor assembly (Outsourced Semiconductor Assembly and Testing), and printed circuit board (PCB) facilities.
But the company’s elevated working capital needs and weak free cash flow have raised questions about its ability to execute the plan smoothly. The brokerage highlighted that working capital days shot up sharply in the first half of financial year 2026.
Management has assured that this will normalise by the end of the year. It plans to use tools such as receivable discounting and supply chain financing to ease cash stress.
ICICI Direct on Kaynes Technologies: Growth guidance stays strong but Q2 dip worried the market
The second quarter numbers were softer. But management has reiterated its long-term targets. According to the brokerage, the company expects revenue of around Rs 4,500 crore by financial year 2026, nearly Rs 9,000 crore by financial year 2028, and roughly Rs 18,000 crore by financial year 2030.
Growth is expected to come from electric vehicles, aerospace, railways, industrial electronics, and eventually semiconductor and PCB manufacturing, which the brokerage says will be “margin accretive.”
ICICI Direct on Kaynes Technologies: Overall brokerage stance
ICICI Direct believes that the issues highlighted are “largely disclosure-related discrepancies and instances of misinterpretation arising from limited clarity in certain disclosures.” They see lomited impact on financials.