Shares of Kaynes Technology Ltd declined sharply on Tuesday, January 6, falling as much as 6.5% to record their steepest single-day drop in nearly a month. The decline ended the stock’s two-day gaining streak.
At the time of writing, the stock was trading 6.5% lower at ₹3,736.1 after touching a 52-week low of ₹3,711 during the session. The fall came in the absence of any material announcement by the company on the stock exchanges.
Before the decline, trading volumes were subdued, with around 8 lakh shares changing hands compared to the 20-day average volume of 36 lakh shares.
Despite the correction, brokerage firm Jefferies maintained its buy rating on Kaynes Technology but reduced its price target to ₹5,940 from ₹7,780 earlier. The revised target still indicates a potential upside of about 55% from current levels.
In an earlier interaction with CNBC-TV18 on December 18, Kaynes Technology’s Chief Financial Officer Jairam Sampath stated that the Mitsui deal is expected to add significant value to the company. He also indicated that as other business segments scale up, the contribution from the smart metering segment is likely to reduce proportionally.
Sampath further noted that the company remains well placed to meet its previously issued guidance and may consider declaring a dividend next year as a confidence-building measure.
Currently, Kaynes Technology is tracked by 26 analysts, with 14 recommending a buy, eight advising hold, and four maintaining a sell rating on the stock.
