Kaynes Technology India shares declined as much as 4.27% on Monday to hit an intraday low of Rs 3,132, marking the third consecutive session of losses and taking the stock’s three-day decline to nearly 25%, after the company reported a weaker-than-expected Q4 performance last week. Brokerage firm Elara Securities also downgraded its rating on the company to “Accumulate” from “Buy”.The company reported a consolidated net profit of Rs 91 crore for the March quarter, down 22% year-on-year from Rs 116 crore in the corresponding period last year. Revenue from operations, however, rose 26% YoY to Rs 1,243 crore compared with Rs 984 crore a year earlier.According to Elara Securities, Kaynes Technology India Ltd missed its revised FY26 guidance on three key parameters. Revenue came in at Rs 36 billion against the revised guidance of Rs 40 billion, while operating cash flow (OCF) remained negative at Rs 6 billion despite expectations of turning positive. Net working capital (NWC) days also stayed elevated at 125 days, missing the company’s sub-100-day target.For FY27, management has guided for 30% growth, lower than its earlier target of 40–50%, though still ahead of the broader EMS industry growth rate. Elara noted that the company’s expectations of improving OCF and reducing working capital in FY27 could remain challenging.The brokerage cut its target price on the stock to Rs 3,530 from Rs 5,700, valuing the company at 36x March FY28 estimated earnings, versus 42x earlier. It also reduced FY27E and FY28E EPS estimates by 23% and 33%, respectively, citing lower Q4 sales, weaker guidance visibility, and persistent concerns around cash flow and working capital.Despite the downgrade, Elara believes the recent weakness was likely due to deferred execution rather than order cancellations. The brokerage highlighted that the upcoming OSAT plant is expected to contribute meaningfully to revenue from FY27 onward, while margins continue to remain among the highest in the industry.Elara expects earnings CAGR of 40% during FY26–29E, with average RoE and RoCE estimated at 11% and 10%, respectively, during FY27E–29E. The brokerage added that improvement in working capital management and operating cash flow would remain key triggers for any potential rerating in the stock.On the technical front, according to Trendlyne data, the stock’s 14-day RSI stands at 31.9—where a reading below 30 is considered oversold and above 70 indicates overbought conditions. The stock also shows a bearish setup, trading below all 8 out of 8 simple moving averages (SMAs).(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)