Macquarie has reaffirmed its outperform rating on Kaynes Technology with a target price of ₹7,700 per share, stating that while the company has strongly refuted allegations of accounting irregularities, restoring investor confidence will take deliberate and sustained effort. The brokerage said management defended itself convincingly by acknowledging disclosure shortfalls but firmly rejecting accusations of financial shenanigans, noting that the clarification offered was detailed and appeared reasonable.
However, Macquarie also pointed out that the breadth of concerns raised in recent market commentary has “muddied the waters,” making sentiment repair a key near-term challenge. The firm believes Kaynes continues to have a strong underlying business, supported by robust organic growth, improving cash flows and visibility on cash subsidies that will aid profitability. In Macquarie’s view, the company’s operational momentum remains intact, with industry trends still favouring vertically integrated electronic manufacturing players.
The brokerage emphasised that a change of auditor may be a necessary step to fully restore market trust, especially as the stock has come under scrutiny despite no evidence of irregularities. Over the medium term, Macquarie expects Kaynes Tech to benefit from sustained capex cycles across electronics, mobility, defence and industrials, which should continue to drive healthy order inflows and execution strength.
Disclaimer: The views and recommendations above are those of Macquarie. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
