Kaynes Technology shares plunge 10%. Why JPMorgan, Nuvama downgraded the EMS stock

May 14, 2026 - 07:03

Shares of Kaynes Technology fell sharply on Thursday, dropping 10 percent to hit a low of Rs 3,760.10 on the BSE. The selloff came after the company's fourth-quarter earnings failed to meet market expectations on several key parameters. Investors were spooked by a weaker-than-expected revenue guidance, deteriorating balance sheet metrics, and a steep decline in net profit.

The disappointing results prompted major brokerages to downgrade the stock. Both JPMorgan and Nuvama cut their ratings, citing concerns over the company's near-term growth outlook and margin pressure. Analysts pointed to a slowdown in order execution and higher working capital requirements as red flags. The stock had been trading at elevated valuations, and the earnings miss triggered a sharp correction.

Kaynes Technology, a player in the electronic manufacturing services space, had seen strong momentum in previous quarters. However, the latest numbers suggest that the pace of expansion may be slowing. The company's management acknowledged the challenges but expressed confidence in a recovery over the next two quarters. For now, the market remains cautious, and further downside cannot be ruled out if the broader economic environment weakens or if order inflows remain sluggish.