Kaynes Tech shares fall 12%, extend losses after worst week since listing

Shares of Kaynes Technology Ltd. fell another 12% on Monday, December 8, extending their losses after witnessing the worst week since listing last week.

In an analyst call earlier this morning, the company's management clarified that there are no intangible assets involved in the acquisition of Sensonic and their financial statements are presented in a relevant and reliable manner.

A small typo error occurred in one of its subsidiaries, and the management acknowledged there was just one mistake of not mentioning in the notes to accounts related party disclosures, which will be duly corrected now.

The management went on to add that there are no inconsistencies in the financial accounting and most of the implications made by Kotak Institutional Equities in its report last week, are not valid.

Net Working Capital Days as per IAS is now at 87 compared to 83 earlier, according to the management, who added that working capital intensity is very typical to the EMS industry and that the company is taking various measures to improve the same.

Going forward, the company intends to bring down its reliance on the Smart Meters business as it is seeing growth in automotive, industrials, railways and electronics.

The management also reiterated that there are currently no plans for promoters to pare stake in the company. Promoters of Kaynes Tech are currently holding 53.46% stake in the company.

In a note on Friday, JPMorgan reiterated that while it continues to remain "overweight" on the stock, predicting a bottom is difficult and that investors should avoid bottom-fishing in the stock as there is no significant trigger ahead till the third quarter results are announced.

Shares of Kaynes Tech ended 11.5% lower on Monday at ₹3,851.5. The stock is in the Futures & Options (F&O) ban, which means that no new positions can be taken in the stock. The stock is down 50% from its record high level of ₹7,822.