Investec has reiterated its “Sell” rating on Kaynes Technology with a target price of ₹2,790 per share, implying a downside of around 29% from Friday’s closing price of ₹3,943.10.
Investec on Kaynes Technology
Investec said Kaynes’ weak cash collection was already a concern in recent quarters, but its FY26 annual report raises additional questions around balance-sheet quality and the potential path to resolving these issues.
The brokerage noted that as receivables from Iskraemeco ballooned, its payables to Kaynes Electronics Manufacturing also rose by a similar amount in FY26. This raises questions over whether a potential divestment of Iskraemeco would actually resolve Kaynes’ cash-flow issues, it said.
Investec estimates that the smart-meter business likely contributed around 40% of Kaynes’ consolidated EBITDA. A potential divestment could therefore materially impair the profitability of the company’s core EMS business.
The brokerage also flagged the sharp increase in receivables despite bill discounting rising from ₹110 crore to ₹460 crore in FY26.
Fixed-asset turns also deteriorated, while intangibles increased sharply, adding to concerns over the quality of the balance sheet.
Kaynes has incurred only around ₹900 crore of capex in OSAT and bare PCB, Investec noted.
Overall, the brokerage believes that fixing the balance sheet without impairing the P&L will be difficult, leaving the risk-reward profile highly unfavourable.
Analyst view on Kaynes Technology
Bloomberg analyst data shows a mixed view on Kaynes Technology, with 7 of 25 analysts recommending Buy, 9 Hold and 9 Sell.
The consensus 12-month target price stands at around ₹3,782, broadly in line with the stock’s recent trading levels.
Shares of Kaynes Technology India Ltd. are trading 5.6% lower on Monday at ₹3,723.4. The stock is down by a similar quantum on a year-to-date basis. The stock has declined 43% over the past 12 months.
