Kaynes Technology India was in focus on December 12 after Smallcap World Fund, owned by US-based Capital Group, acquired a 0.66% equity stake in the company through open market transactions.
Kaynes Technology, an IoT-enabled integrated electronics manufacturing services (EMS) player, has witnessed consolidation during the current week before staging a sharp rebound. The stock closed at ₹4,265.50, gaining 5.54% on Friday, after a 3.88% rise in the previous session.
Stock Recovers After Sharp Correction
Prior to the recent recovery, Kaynes Technology had corrected over 50% from its October high of ₹7,705. The steep fall followed governance and accounting-related concerns raised by Kotak Institutional Equities in a report, which triggered heavy selling pressure.
However, sentiment has improved as several brokerages maintained a positive outlook on the stock.
Brokerage View on Kaynes Technology
- ICICI Direct stated that the governance and accounting issues are not expected to have any financial impact on the company, adding that the long-term growth story remains intact. The brokerage highlighted that while improved transparency is needed, there is no indication of fraudulent intent.
- Prabhudas Lilladher continues to maintain a ‘Buy’ rating on the stock.
- Macquarie has also retained its ‘Outperform’ rating on Kaynes Technology shares.
The entry of a global institutional investor via a bulk deal has added to positive sentiment, helping the stock rebound after a prolonged correction.
