Overview
- The stock fell about 13% on Monday and is down over 30% this month, cutting market value by more than $1 billion to roughly $2.8 billion.
- Kotak flagged ambiguous accounting for acquisitions, variances between cash flow and asset additions, and mismatches across filings, highlighting contingent liabilities of about Rs 520 crore (~18% of net worth).
- Kaynes said an omission of Rs 180 crore in related-party purchases from standalone disclosures was inadvertent and has been corrected, asserting its FY25 annual report contains no inconsistencies.
- JPMorgan cited questions on revenue growth and said investors want evidence of improved cash generation, with Q3 eyed for updates on receivables, working capital and doubtful-debt provisions.
- Market specialists advised avoiding new long positions and recommended strict risk controls, with suggested stop-loss near Rs 3,750 and potential downside toward Rs 3,500 if weakness persists.