Is This A Good Time To Buy Kaynes Tech? Technical And Funda Experts Share Views

Shares of Kaynes Technology India Ltd. are once again on a roll, surging up to 5% on Friday's session. This comes on the back of an immense correction witnessed in the counter over the past week.

Technical and fundamental analysts consulted by NDTV Profit suggest the long-term growth story remains intact for the company, and if finances remain stable, the stock can make a considerable recovery.

Shares of Kaynes Tech are currently trading at Rs 4,181, reaching intraday Rs 4,243 which accounts for 5% gains from Thursday's closing price. It must be noted that Kaynes shares appreciated over 6% on Thursday.

Astha Jain, Senior Research Analyst at Hem Securities, believes the upward momentum in Kaynes Tech comes after the stock witnessed massive drawdown in the recent past.

"Kaynes Tech already corrected a lot. I believe there is a structural growth story for this counter, which has not changed. Kaynes has a multi-year growth story, which is very strong. They have successfully delivery for module chips and there is a government push in the industry. So there is a lot of positives, which is why we are seeing this kind of rally," she said.

Shares of Kaynes Tech have fallen as much as 35% even if we account for the rally in the last two trading sessions.

Jain, a fundamental analyst, believes Kaynes Tech's long-term growth story remains intact and therefore, recommends a buy on this counter.

"If anyone is willing to take a risk, they can start accumulating the stock from now or simply wait for the next earnings report," she said.

Meanwhile, Gaurav Sharma, Associate VP & Head of Research at Globe Capital, is a bit less convinced about Kaynes Tech, especially amid a recent Kotak Institutional Equities report that highlighted corporate governance woes.

“Corporate governance issues have been noticed in the stock. The management has offered some clarification but I believe more is needed," he said.

Talking about the technical aspect of the stock, Sharma added, "The stock has approached its long-term support - close to 3,600, 3,700 levels and a bounce has been witnessed thereafter."

The technical analyst refuses to advocate for a 'buy' rating on Kaynes Tech but believes gradual accumulation can be done, thanks to long-term growth levers in the EMS space.

“I am not advocating a buy at these levels but I believe that gradual accumulation can be done in small tranches because the long-term story for the EMS space is still intact.

"If the company continues to meet growth paths and finances remain stable, I believe in one to two years, the stock could see a reasonable recovery," he concluded.