Stock Crash: Shares of the company, which gave a return of 455% in 4 years, fell badly today, its worst week since listing.

News Topical, Digital Desk : Stock Crash: Shares of Kaynes Technology Ltd. fell 4.5% on the first day of the week today, Monday, December 8. Today's decline deepened the ongoing decline after last week's worst week since listing.

The company's management clarified that the acquisition of Sensonic did not involve any intangible assets and that its financial reporting is completely accurate and reliable. They stated that a minor typo occurred in the documents of one of its subsidiaries.

This was the only error, the omission of related party disclosures in the notes to the accounts, which is now being corrected. Management also stated that there were no discrepancies in the business accounting and that most of the claims made in last week's Kotak Institutional Equities report are not valid. 

The company's planning firm stated that net working capital days have now increased from 83 to 87 as per IAS standards. According to management, working capital overhang is common in the EMS (Electronics Manufacturing Services) industry and the company is taking several steps to improve it. Sharing its future strategy, management stated that the company intends to reduce its dependence on the smart meter business, as the automobile, industrial, railway, and electronics segments are experiencing better growth. Management also reiterated that there are no plans to reduce promoter stake. Currently, promoters hold 53.46% in Kaynes Tech. 

Overweight Stock JPMorgan stated in its Friday note that it still maintains an "overweight" view on the stock, but it is difficult to predict a bottom at this time. The firm advised investors to avoid "bottom fishing" for now, as there are no major triggers ahead of the company's Q3 results. On Monday, Kaynes Tech shares fell 3.7% to trade at ₹4,192. The stock is currently under F&O restrictions, meaning new positions cannot be created. The stock is trading 46% below its record high of ₹7,822.

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