- Shares of Kaynes Technologies fell over 2% after Q3 earnings announcement on Friday
- Q3 profit rose 15% to Rs 76.6 crore; revenue increased 21% to Rs 804 crore, margins at 14.8%
- Jefferies noted slowdown in industrial sales and operating margins missed estimates
Shares of Kaynes Technologies Ltd. are under immense pressure in trade on Friday after the company reported its third-quarter earnings for the financial year ending March 2026. The stock is trading at Rs 3,515, accounting for a decline of more than 2% while reaching an intraday low of Rs 3,337.
This comes on the back of a December quarter that saw profit rise 15% to Rs 76.6 crore, while revenue saw an uptick of 21% to Rs 804 crore. Margins expanded to 14.8% as well, but were far below brokerage estimates.
In light of the company's third-quarter earnings, Jefferies released a note on Kaynes Tech, highlighting a noticeable slowdown in the industrial sales division, while operating margins missed estimates.
Jefferies noted that sales growth had a sharp deceleration compared to H1FY26, while net working capital remains under pressure, rising 23 days on a quarter-on-quarter basis. Net debt rose to Rs 660 crore as well, as the balance sheet and working capital remain key headwinds for the counter.
Meanwhile, Macquarie has also put out a note on Kaynes Tech, citing a weak performance in the December quarter. The firm noted that the revenue miss was primarily due to lower-than-anticipated growth for the Industrials and Railways segment.
Technical View On Kaynes Tech
Kush Bohra, founder of KushBohra.com, has offered his technical view on Kaynes Tech after its third-quarter earnings, stating that the scrip has entered a deeply oversold territory.
"Following a sharp 60% decline from its September 2025 peak, Kaynes Technology has entered deeply oversold territory. While recent market strength suggests a potential rebound, it may initially manifest as a dead cat bounce. A sustainable trend reversal requires a decisive close above the 3850 resistance level," he said.
Shares of Kaynes Tech are trading with a relative strength index of 84, which suggests the stock has indeed entered an oversold territory.
Meanwhile, Parag Thakkar, head and fund manager of Fort Capital, says he is completely avoiding the EMS space when asked about Kaynes Tech.
"I've not been a big bull in the EMS space. I'm not in favour of paying 40-50x P/E multiples for businesses which have so many moving parts. I will not buy. That is my stance on the EMS space," he concluded.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
