Bengaluru, Jan 6, 2026, 17:03 IST — Market closed
- Kaynes Technology shares fell 5.2% to 3,791.40 rupees, after touching a 52-week low of 3,710.40. 1
- Jefferies kept a “Buy” rating but cut its target price to 5,940 rupees, Moneycontrol reported. 2
- Focus now shifts to the company’s December-quarter results expected later this month and any update on cash conversion. 3
Kaynes Technology India shares slid on Tuesday to a fresh 52-week low, extending a steep selloff in the contract electronics maker as investors digested a broker target cut and a risk-off market mood. 1
The stock finished down 5.2% at 3,791.40 rupees on the NSE, after falling as much as 6.5% earlier in the session. It has now lost about 49% over the past three months, according to Business Standard data. 1
The drop mattered because Kaynes has been a high-multiple electronics manufacturing services (EMS) name where sentiment has hinged on cash conversion — how quickly sales turn into cash — rather than revenue growth alone. With the stock at a new low, traders will look for signs the company can bring down money tied up in receivables and inventory ahead of results. 1
The broader market also leaned lower. The Nifty 50 closed down 0.27% at 26,178, while midcaps and smallcaps were also weaker, Mint reported. 4
A Jefferies note added pressure, Moneycontrol said. The brokerage maintained its “Buy” rating on Kaynes but cut its target price to 5,940 rupees from 7,780 rupees, still implying about 55% upside from current levels; it also lowered its target on sector peer Dixon Technologies while keeping a “Hold” rating, the report added. 2
Investors will also be weighing near-term expectations for the EMS pack. PL Capital expects the group to post moderate year-on-year growth in the December quarter, and sees Kaynes delivering about 40% revenue growth, driven by automotive, industrial and medical segments, Business Today reported. 5
Working capital remains the swing factor. CFO Jairam Sampath told CNBC-TV18 he was “looking to reduce net working capital to 85 days by end of this year,” and said the company expected positive cash flows by end-FY26; working capital is the cash tied up in day-to-day operations such as inventory and customer dues. 6
A company filing shows Kaynes has shut its insider trading window from Jan. 1 to Jan. 30, typically a sign the market should expect the December-quarter results and related disclosures within that period. “The Trading Window … shall remain closed from Thursday January 01, 2026 to Friday January 30, 2026,” company secretary Anuj Mehtha wrote in the filing. 3
But the path is not one-way. If cash conversion does not improve or commentary points to slower collections, investors could push for more earnings downgrades and a lower valuation multiple, keeping the stock under pressure near its 3,710–3,711 rupee low. 1
Next up is the company’s December-quarter update expected by end-January, with investors watching for evidence of easing working-capital strain and clearer guidance on segment mix and execution. 3
