Here's Why Kaynes Tech Shares Are Rising In Trade Today
What has strengthened the sentiment in the Kotak stock is that almost all brokerages, despite their cautious note, have remained bullish on the stock.
After facing a massive drawdown in trade on Wednesday, the shares of Kaynes Tech have rallied in trade on Thursday, even amid corporate governance and questionable accounting practices highlighted by Kotak Institutional Equities last week.
The stock is trading at Rs 4,008, at a premium of over 3% compared to Wednesday's closing price of Rs 3,890.
Following the critical report from Kotak, shares of Kaynes have been on a falling trade, with the stock correcting as much as 33% in the last month.
Although the management of Kaynes Tech has come out with several clarifications on the alleged accounting practices and balance sheet woes, a slew of brokerages have come out with a cautious note on the counter.
Brokerages such as Nomura and Kotak Securities have even cut target price on Kaynes Tech.
However, what has strengthened the sentiment in the Kotak stock is that almost all brokerages, despite their cautious note, have remained bullish on the stock.
Nomura, for one, was the latest to acknowledge the Kotak report. But despite admitting stress on working capital and cash flow as well as the target price cut, the brokerage remained bullish with a buy rating.
The likes of JPMorgan, Morgan Stanley, Nomura and Macquarie have all retained a positive stance on Kaynes Tech, suggesting that the company's fundamentals remain unchanged.
This is coupled with the fact that the management has clarified and issued a rebuttal to most of Kotak's claims while admitting some accountancy error, which has played a part in reinstating investor confidence.
Kaynes Tech is currently trading with a relative strength index of 44, which is a significant improvement from the sub-30 levels last week. It essentially means the stock is not in an oversold territory anymore.
