JPMorgan has advised investors against “bottom fishing” in Kaynes Technologies Ltd., citing the absence of a clear catalyst until the company releases its third-quarter results. Despite this caution, the brokerage maintains an “overweight” rating on the stock with a target price of ₹7,550, implying a potential upside of 52% from current levels. The stock has fallen 25% over the past month and recorded gains in only five of the last 25 trading sessions.
JPMorgan highlighted concerns over Kaynes’ balance sheet, cash flow, and revenue growth, including issues related to ex-smart meters. Investor feedback indicates a pressing need for improvement in cash flow. The stock’s decline has been largely sentiment-driven following the company’s second-quarter results, despite no material changes in fundamentals or guidance, making it difficult to predict when a bottom might be reached.
The sell-off intensified after Kotak Institutional Equities flagged certain concerns, to which Kaynes responded in detail to the exchanges. Among the 26 analysts covering the stock, 14 recommend “buy,” eight “hold,” and four “sell.” Shares ended 12.3% lower at ₹4,365 on Friday, marking the worst week since its listing.
