Kaynes Technology India, a key player in IoT solutions and integrated electronics manufacturing, witnessed a sharp decline in its stock price on March 12, tumbling by 9.15% in early trade. The stock fell to a two-week low of ₹3,898 per share after the company disclosed in an exchange filing that its Managing Director, Ramesh Kunhikannan, had received a show-cause notice from the Securities and Exchange Board of India (SEBI).
According to the regulatory filing, SEBI’s notice alleges suspected violations related to the maintenance of the Structured Digital Database (SDD) concerning the company’s financial results for the period ending March 31, 2023. The notice refers to potential non-compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015.
In response, Kaynes Technology stated that it is reviewing the notice’s contents and will take necessary legal and procedural steps, including submitting a response to SEBI within the stipulated time frame. The company assured that it, along with its management and all involved parties, remains committed to full cooperation with SEBI to resolve the issue as per legal and regulatory requirements.
The latest slump in Kaynes Technology’s stock follows a recent downtrend triggered by its revised revenue forecast for the financial year 2025. Although the company posted a 47% year-on-year rise in consolidated net profit, the figure fell short of market expectations, prompting analysts to revise their stock price targets.
Global brokerage firm Jefferies upgraded Kaynes Technology from ‘Hold’ to ‘Buy,’ but reduced its target price to ₹5,400 from ₹6,950, signaling a cautious approach despite an optimistic long-term outlook. Similarly, Japanese brokerage firm Nomura maintained its ‘Buy’ rating on the stock while lowering its price target from ₹6,516 to ₹6,146.
Kaynes Technology’s stock has been on a downward trajectory over the past three months, declining by 44.5% during this period. The stock saw a steep 35.99% fall in January, marking its worst monthly performance since its listing in December 2022. In February, the stock further declined by 13.53%, reflecting continued investor concerns over the company’s growth prospects and regulatory challenges.
As market participants closely monitor developments regarding SEBI’s investigation, the company’s ability to address regulatory concerns and rebuild investor confidence will play a crucial role in determining its future stock performance.
