Kaynes Technology slides to 52-week low as Kotak flags disclosure gaps
Kaynes Technology slides to 52-week low as Kotak flags disclosure gaps
Analysts flag mismatches in filings and a spike in contingent liabilities as Kaynes Technology's stock sinks further.
Shares of Kaynes Technology India Ltd extended their sharp decline for a fourth straight session, slipping 14.05% to touch a one-year low of Rs 3,746.20. The stock has fallen about 30% over the last four trading sessions after Kotak Institutional Equities raised concerns over inconsistencies in FY25 related-party disclosures. The brokerage highlighted issues around the quality and completeness of disclosures across Kaynes Tech, Kaynes Electronics Manufacturing, and Iskraemeco, adding that contingent liabilities had surged to Rs 520 crore, or roughly 18% of the company’s net worth.
According to Kotak's note, major additions to contingent liabilities during the year included performance bank guarantees of Rs 96.8 crore for Iskraemeco projects and corporate guarantees worth Rs 132.5 crore issued to subsidiary companies, including Rs 122.5 crore for Kaynes Electronics and Rs 70 crore for Iskraemeco, linked to funding requirements following the acquisition of Iskraemeco. The report underscores how these guarantees and related-party transactions could affect the group’s financial risk profile.
Company officials have indicated that the disclosures will be clarified in forthcoming communications, while analysts urged investors to monitor how the company addresses the highlighted gaps and the evolution of its contingent liabilities amid the ongoing market volatility.
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