Kotak Note started selling Canes technology
The stock’s recent decline followed a critical report by Kotak Institutional Equities, which pointed to multiple discrepancies in Keynes’s financial disclosures and related-party transactions. Discrepancies were noted between the filings of subsidiaries Iscremeco and Canes Technology and its unit, Canes Electronics Manufacturing.
Kotak highlighted missing inter-company transactions, including Rs. 180 crore purchase, Rs. 320 crore paid and Rs. 190 crore, which was absent from the parent company’s official filings. Additional concerns include treatment of goodwill and intangibles, acquisition accounting, cash conversion cycle, contingent liabilities of Rs. 520 crore and includes borrowing cost discrepancies.
In response, Keynes described the errors as “inadvertent” and said the issues had been corrected in its consolidated financial statements with a commitment to future compliance. The company also clarified the classification of intangible assets and the effective interest rate on borrowings.
A technological view of Kane’s technology
From a technical perspective, the stock remains below all eight major simple moving averages (5-day to 200-day), indicating a bearish undertone in the short-term to long-term charts. The Relative Strength Index (RSI) is at 9.1, pointing to an oversold condition that could trigger a short-term rebound, while the MACD at -538.9 continues to signal strong bearishness.
Harshal Dasani, Business Head, INVasset PMS, said, “Technically, the stock has slipped into a sensitive zone, with key support at Rs 3,350-3,500, a band from which a short-term bounce is possible. However, the formation of a double-top pattern on the chart indicates risk below Rs 70, risk below 30: this structure will confirm and major resistance at Rs 4,500 and Rs. 5,400, where any rebound could face strong supply.”
Appraisal and analyst perspectives
Despite the recent volatility, JPMorgan said Canace Technology emerged as the cheapest stock in its Asia Pacific coverage universe. The brokerage maintained an ‘overweight’ rating, noting that the stock now trades at just 0.7x PEG, below the peer average, and that fundamentals remain intact.
JPMorgan analysts highlighted that the company’s net working capital was 116 days in H1 FY26, mainly due to the smart meter business. Management expects acquisitions to normalize in the next two quarters, with the contribution of smart meters declining from 28% in H1 to 11% in H2. Under bearish conditions, the stock is still trading at Rs. 4,900 would be subject to a fair value, implying 29% upside from current levels.
Kaynes Technology Q1 FY26 Results and New Ventures
Kaynes Technology in Q1 FY26 at Rs. 74.6 crore reported a consolidated net profit, up from Rs. 50.77 crores. Revenue increased by 33.6% to Rs. 673.4 crores. The company also roped in Kaynes Space Technology Pvt Ltd to enter the space sector and develop satellites of all classes.
A rebound on Tuesday offers a short-term relief rally after four days of brutal correction. While some analysts see value at these levels, technical cues and lingering transparency concerns suggest caution. Investors will need to monitor whether the stock can reclaim key resistance levels and stabilize working capital.
Also Read | Keynes Technology shares are now the cheapest in JPMorgan’s coverage after a 40% correction in one month. Time to buy?
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)
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