Date: December 13, 2025
Kaynes Technology India Ltd (NSE: KAYNES, BSE: 543664) has become one of the most watched mid-cap counters in India this month—not because of a new product launch or a blockbuster order, but because the stock has been whipsawed by a fast-moving mix of disclosure concerns, broker downgrades, company clarifications, and a broader de-rating in the electronics manufacturing services (EMS) space. [1]
As of the last market close (Friday, Dec 12, 2025), Kaynes shares ended around ₹4,265.50, up about 5.5% on the day—after a brutal stretch that included fresh 52-week lows and heavy turnover. [2]
What follows is a complete, publication-ready roundup of the current news, management commentary, and broker forecasts available as of 13.12.2025, plus the key variables likely to decide whether this is a temporary trust wobble—or a more durable reset in how the market prices Kaynes’ growth story.
What happened to Kaynes Technology stock in December 2025?
The immediate trigger for the selloff was market anxiety about accounting presentation and disclosures, amplified after a critical brokerage note (widely linked to Kotak Institutional Equities in market coverage) flagged inconsistencies and raised questions around items like acquisition accounting, related-party transaction (RPT) disclosures, and working-capital quality. [3]
From there, the storyline escalated quickly:
- Large price swings: Business Standard reported Kaynes slipping as low as ~₹3,960 intraday on Dec 10, after a bounce a day earlier, underscoring how disorderly the trade became. [4]
- Heavy volumes: The same report said 10.33 million shares changed hands across NSE+BSE on Dec 10—about 15.4% of total equity—a remarkable number that points to forced selling, risk-off de-grossing, or major rotation among institutions. [5]
- Sentiment spillover into the EMS sector: Media coverage also highlighted weakness in other EMS names as investors started asking whether high-growth electronics manufacturing was seeing a broader valuation reset. [6]
Importantly, the debate moved from “earnings” to “credibility and cash conversion.” When that happens, stocks often stop trading on P/E alone and start trading on whether investors believe the numbers will translate into cash—especially with big capex ahead.
Management’s response: “Disclosure errors, not governance” — and the detailed accounting breakdown
Kaynes management responded in multiple ways: exchange clarifications, a business update call, and a point-by-point response to observations circulated in the market.
1) The business update call (Dec 8) addressed the core issues head-on
In the Dec 8, 2025 business update call transcript, Kaynes’ leadership acknowledged that some disclosures “required clearer clarification and articulation,” characterizing them as errors in reporting disclosures in notes to accounts, not a governance lapse, while also stating that internal compliance and disclosure checks were being strengthened. [7]
The call also contains the most specific public breakdown of the acquisition accounting that became a flashpoint:
- Kaynes described two FY25 acquisitions—Iskraemeco and Sensonic—and explained how purchase price allocation under Ind AS 103 led to a situation where intangibles (customer contracts) were recognized rather than simply pushing value into goodwill. [8]
- Management stated that, for Iskraemeco, an identified intangible asset “customer contract” of ₹115 crore (₹1,150 million) was recognized under “technical know-how,” linked to smart-meter design/implementation know-how and related packages. [9]
- They also provided a numerical table-style walkthrough: Iskraemeco net assets, consideration, intangible recognized, and the resulting net goodwill/capital reserve effect—followed by the Sensonic leg—ending with a small net figure at the consolidated level. [10]
This matters because the market wasn’t only questioning whether Kaynes followed accounting standards—it was also reacting to how readable and comparable the presentation was for investors scanning consolidated statements.
2) Receivables and working capital: Iskraemeco overhang is the watchpoint
The business update call also drilled into what many investors care about most right now: collections.
In the transcript, Kaynes’ CFO discussed Iskraemeco-related receivables and indicated that total receivables including certain beyond-one-year items were about ₹687 crore, with a referenced portion (~₹240 crore) associated with other non-current assets that the company aimed to get discounted off its books. [11]
Management also gave directional revenue numbers tied to the smart metering business—roughly ₹500+ crore in the first half and about ₹300+ crore expected in the second half—while signaling that smart metering is expected to become a declining share of the portfolio as other verticals scale. [12]
3) The company’s point-by-point clarification to Kotak observations
Separately, Kaynes published a structured response to the observations circulating from the Kotak note. In that response, the company:
- Reiterated that customer contracts can be recognized as intangible assets as part of acquisition accounting (Ind AS 103). [13]
- Said certain RPT disclosure items were inadvertently not disclosed in standalone financial statements, while being eliminated/handled appropriately in consolidated statements, and that the lapse was rectified and noted for future compliance. [14]
- Addressed the “average borrowing cost” discussion, stating that interest cost calculation should consider bill discounting and suggesting an adjusted figure (presented as about 10% including bill discounting, while acknowledging the higher cited number in the market conversation). [15]
This combination—admitting disclosure weakness but defending accounting logic—is why the stock’s action has been so polarizing: bears see a trust deficit; bulls see a fixable communication issue in a fast-scaling company.
The auditor rumour: company filing says “no negotiations” and “no decision”
Another accelerant to volatility was chatter that Kaynes might change its statutory auditor. Kaynes issued a clarification stating:
- No negotiations are taking place regarding an auditor change,
- No proposal was placed before the Board/Audit Committee, and
- The company was not aware of any undisclosed event to explain stock moves, and no regulatory/legal proceedings were initiated in relation to that matter. [16]
That matters, because when a stock is already under disclosure scrutiny, even the idea of an auditor change can become gasoline.
Institutional flows: Motilal Oswal Mutual Fund sale added to nerves
In the middle of this, Business Standard reported that Motilal Oswal Mutual Fund sold 817,623 shares (about 1.2% of total equity) on Nov 18, 2025, and noted it was the largest public shareholder as per the Sept 30 shareholding pattern referenced in that report. [17]
To be clear: a fund sale doesn’t prove anything sinister. But during a confidence shock, it can amplify the market’s “who knows what?” reflex.
Fundamentals check: Q2 FY26 results, order book, and the “next engines” (OSAT + PCBs)
Underneath the noise, Kaynes is still being valued as a company with multi-year growth optionality—especially if its semiconductor and PCB ambitions scale without blowing up the balance sheet.
A Business Standard market update summarized Kaynes’ Q2 FY26 performance as:
- Consolidated net profit up 102% YoY to ₹121.4 crore
- Revenue up 58% YoY to ₹906.2 crore
- Order book rising to about ₹8,099.4 crore as of Sept 30, 2025 [18]
Meanwhile, in the Q2 earnings call transcript (Nov 5, 2025), Kaynes described:
- Its Sanand OSAT facility as operational and ramping up capacity
- Progress toward an advanced multilayer HDI PCB facility in Chennai
- The broader positioning of Kaynes inside India’s push to build deeper electronics and semiconductor value chains [19]
This is why many analysts have not abandoned the story even after the selloff: the strategic direction (moving up the value chain beyond “pure EMS assembly”) is still seen as attractive—if execution and cash discipline hold.
Broker targets and forecasts: wide dispersion, but most still lean constructive
After the drawdown, the Street didn’t converge on a single narrative—it fragmented into camps.
Bullish camp: “derating is about near-term liquidity, not fundamentals”
- J.P. Morgan reiterated an Overweight stance with a target of ₹7,550, framing the derating as more about near-term liquidity strain than fundamental deterioration, and assigning value to core EMS plus optionality from OSAT/PCB. [20]
- Macquarie also reiterated an Outperform view with a target cited around ₹7,700 in market coverage, with commentary that management clarification sounded reasonable. [21]
Middle camp: “good business, but prove cash flow + disclosures first”
- ICICI Direct maintained a BUY rating with a revised target of ₹6,400, explicitly saying the issues look like disclosure-related discrepancies rather than fraud—but warning that trust issues can pressure the valuation multiple until transparency improves. [22]
- Prabhudas Lilladher (PL Capital) kept a BUY but cut target to ₹5,624, while highlighting management clarifications and stressing that smart metering should become a declining part of the portfolio as other verticals scale. [23]
- Nomura maintained a Buy but slashed its target to around ₹5,455 from ₹8,478 in reported coverage—still implying upside from the post-crash levels, but acknowledging that the market is repricing perceived execution and disclosure risks. [24]
Consensus snapshots: what “the average target” says (and why it can mislead)
Aggregated analyst consensus tracking shows an average target in the ₹6,100 zone, with a wide high–low range—reflecting how uncertain the market is about what multiple Kaynes deserves after the episode. [25]
Takeaway: targets still cluster above the current price, but the reason is less “everyone thinks earnings will explode” and more “if credibility and working capital normalize, the multiple can recover.”
Why the entire EMS sector is being repriced
Kaynes didn’t sell off in a vacuum. A parallel theme in recent coverage is P/E de-rating across EMS, raising the question: is this a temporary scare—or a structural reset where the market demands cleaner cash flows, slower-but-higher-quality growth, and fewer “trust me” adjustments? [26]
In that context, Kaynes becomes a case study: a company pitching a bigger future (OSAT, advanced PCBs), while investors ask the very old question: Cool. Who’s paying for it, and when does the cash show up?
Key risks investors are watching now
Here’s what matters most going forward—based on management disclosures and current broker commentary:
1) Working capital and collections (especially smart metering / Iskraemeco)
Management has put numbers on receivables and discussed mechanisms like discounting to accelerate cash conversion. The market will likely track whether reported improvement shows up in future cash flow statements. [27]
2) Disclosure quality and internal controls
Kaynes has publicly acknowledged that its communication needs to scale with its size and ambitions, and that it plans structural improvement. In a post-selloff world, “better disclosures” isn’t a nice-to-have; it can directly affect valuation. [28]
3) Capex execution risk (OSAT + PCB ramp)
Even supportive brokers repeatedly flag that execution delays or cost overruns could stress returns and cash flows. [29]
4) Valuation and multiple risk
Even after the correction, Kaynes is still often discussed as a premium-multiple stock. When sentiment breaks, expensive stocks can stay “cheap-looking” longer than investors expect.
What to watch next: the near-term catalyst checklist
Over the next few weeks and quarters, the market will likely focus on:
- Evidence of working capital normalization (days sales outstanding, receivable ageing, cash from operations) [30]
- Follow-through on strengthened reporting and disclosure processes [31]
- OSAT/PCB milestone updates and clarity on capex phasing and subsidy/financing assumptions [32]
- Whether the stock’s rebound is driven by fundamental re-rating or merely a technical relief rally after oversold conditions, as described in market coverage this week [33]
Bottom line
As of Dec 13, 2025, Kaynes Technology India Ltd is trading less like a steady compounding growth stock and more like a live referendum on three questions:
- Are the disclosure issues truly “presentation/communication” problems—or the start of a deeper trust gap? [34]
- Can Kaynes convert growth into cash while funding large capex ambitions? [35]
- Does the market return to premium EMS multiples—or does the sector settle into a lower valuation regime? [36]
Bulls point to order book strength, the OSAT/PCB runway, and largely intact broker buy calls. Bears point to working-capital strain, disclosure scars, and the possibility that valuation won’t bounce back quickly even if growth does.
References
1. www.business-standard.com, 2. finance.yahoo.com, 3. www.business-standard.com, 4. www.business-standard.com, 5. www.business-standard.com, 6. m.economictimes.com, 7. www.kaynestechnology.co.in, 8. www.kaynestechnology.co.in, 9. www.kaynestechnology.co.in, 10. www.kaynestechnology.co.in, 11. www.kaynestechnology.co.in, 12. www.kaynestechnology.co.in, 13. www.kaynestechnology.co.in, 14. www.kaynestechnology.co.in, 15. www.kaynestechnology.co.in, 16. bsmedia.business-standard.com, 17. www.business-standard.com, 18. www.business-standard.com, 19. www.kaynestechnology.co.in, 20. www.financialexpress.com, 21. www.ndtvprofit.com, 22. www.icicidirect.com, 23. plindia.com, 24. m.economictimes.com, 25. www.investing.com, 26. www.ndtvprofit.com, 27. www.kaynestechnology.co.in, 28. www.kaynestechnology.co.in, 29. www.icicidirect.com, 30. www.icicidirect.com, 31. www.kaynestechnology.co.in, 32. www.kaynestechnology.co.in, 33. m.economictimes.com, 34. www.kaynestechnology.co.in, 35. www.icicidirect.com, 36. www.ndtvprofit.com
