Kaynes Technology CEO Exit Rattles Investors But Technicals Suggest More Upside, Says SEBI Analyst

Shares of Kaynes Technology India fell as much as 4.7% on Friday after its chief executive officer resigned. However, prices recovered some ground after the company clarified in an interview with CNBC-TV18 that a replacement candidate has been identified and will be announced soon. 

Kaynes Technology’s CFO, Jairam Sampath, said that the chosen candidate was an internal hire who has been with the company for the past year. 

Leadership Shakeup Rattles Investors

According to a press release dated September 19, Rajesh Sharma tendered his resignation as the CEO of the company to pursue opportunities outside the organiation. Sharma will vacate his position on October 31.

Sharma joined Kaynes nearly four years ago and has been part of several major milestones, including its IPO & consequential public listing, as well as reaching a market capitalization of over ₹50,000 crores.

Last month, its unit Kaynes Circuits India signed an MoU with the Tamil Nadu government to invest ₹4,995 crores over a period of 6 years to establish manufacturing facilities, including greenfield projects and capacity expansions.

Technical View

The stock has confirmed a VCP (Volatility Contraction Pattern) breakout on strong volumes, moving above its neckline near ₹6,880, noted SEBI-registered analyst Financial Sarthis.

The breakout is now being retested as support, a healthy sign for trend continuation, he added.

If Kaynes sustains above this level, it can scale toward the ₹7,500 – ₹7,800 zone in the near term.

Stock Watch

Investor sentiment has been ‘bearish’ for a week on Stocktwits. It was ‘neutral’ earlier. Kaynes is among the top trending stock on Stocktwits.

While the stock’s one-month gain is around 14%, it has shed over 4% on a year-to-date basis.

The Mysore-based company designs and manufactures advanced electronic modules and solutions.

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