Home / Business and Economy / Kaynes Tech Stock Plummets on Q4 Miss
Kaynes Tech Stock Plummets on Q4 Miss
14 May
Summary
- Kaynes Technology's Q4 revenue missed guidance by 27%.
- Working capital days surged to 125, far exceeding guidance.
- Multiple brokerages downgraded the stock following the results.
Shares of Kaynes Technology saw a sharp decline of nearly 20% on Thursday, reaching Rs 3,366 per share. This significant drop followed the company's fourth-quarter financial results, which were characterized by a substantial miss on revenue guidance, a worsening balance sheet, and a notable decrease in profit.
The company reported Q4 revenue of Rs 1,243 crore, a 26% year-on-year increase, but this fell short of its own guidance of Rs 1,700 crore by a significant 27%. This revenue miss also exceeded analyst estimates. Furthermore, net working capital days increased to 125, considerably higher than the company's guidance of 85-100 days, and operating cash flow was negative Rs 4.6 billion.
In response to these results, several financial institutions revised their ratings. JPMorgan downgraded the stock to Neutral, while Nuvama moved its rating to Hold, with both firms significantly reducing their price targets. Morgan Stanley maintained an Equal-weight rating, and CLSA retained an Outperform rating, though acknowledging the results as a clear negative.
