Kaynes Technology share drops over 8% as brokerages Kotak, JP Morgan raise red flags

Key Highlights

• JPMorgan urged investors to stay cautious and avoid “bottom fishing” in the stock, noting the absence of near-term catalysts until the third-quarter results.
• While the global brokerage has maintained its ‘overweight’ rating with a price target of ₹7,550, it emphasised that sentiment—not fundamentals—currently drives the stock.
• According to JPMorgan, Kaynes is facing balance sheet pressure, weak cash flows and questions around revenue growth, particularly beyond the smart meter segment.
• The brokerage pointed out that “investor feedback indicates the company needs to show improvement in its cash flow” before confidence returns.
• It added that the stock has been sliding since the Q2 results, and “it is difficult to predict when the stock will make a bottom.” Kotak’s observations were more pointed.