Kaynes Technology shares tumble over 9% after MD receives show-cause notice from SEBI

Indian stock market: Kaynes Technology India, a leading player in end-to-end IoT solutions and integrated electronics manufacturing, saw its shares plunge 9.15% in early morning trade on March 12, to hit a 2-week low of ₹3,898 apiece after the company, in an exchange filing on Tuesday, disclosed that its Managing Director, Mr. Ramesh Kunhikannan, has received a show-cause notice from the Securities and Exchange Board of India (SEBI).

'The Notice alleges suspected violations in the maintenance of the Structured Digital Database (SDD) pertaining to financial results for the period ended March 31, 2023, as per the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015," the company said in a regulatory filing.

"We are currently reviewing the contents of the Notice and will take all appropriate legal and procedural steps, including providing a timely response to SEBI. The company, the Noticee, and all concerned remain committed to fully cooperating with SEBI to resolve this matter in accordance with the applicable legal and regulatory framework," the company added.

The company shares have been falling recently, especially after the electronics equipment maker trims its FY25 revenue forecast. Although the company reported a 47% YoY jump in its consolidated net profit, it came lower than the street estimates, prompting analysts to cut the target price on the stock.

Global brokerage firm Jefferies upgrades Kaynes Technology India from 'Hold' to 'Buy' while lowering the price target to ₹5,400 from ₹6,950. Meanwhile, Japanese brokerage firm Nomura revises the price target for Kaynes Technology India to ₹6,146 from ₹6,516, maintaining its 'Buy' rating

Kaynes Technology share price history

Over the last three months (including the current month), the shares have tumbled 44.5%, ending February with a 13.53% decline, followed by January’s 35.99% drop, which was the biggest monthly decline since its listing in December 2022.

However, in the long term, the stock is still up 328% over the last two years and 600% over the past three years.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.