This stock has become 40% cheaper; JP Morgan says, right time to buy!

Foreign brokerage firm JP Morgan has given its opinion on a stock and recommended buying it. They say that this stock has become 40 percent cheaper in one month. According to them, this is the right time to buy it. The stock we are talking about is Kaynes Technology.

The brokerage firm has therefore advised buying it

JP Morgan has initiated coverage on this stock. Between November 10th and December 8th of last month, this stock fell by 41 percent. The stock is trading at around ₹4000 from a level of ₹6400. Yesterday, its shares saw a decline of 12.5 percent, but today the stock is showing an upward trend. After JP Morgan's target price was announced, the stock has surged by 7 percent.

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This stock has become 40% cheaper

In its latest Asia Pacific Equity Research note dated December 9, 2025, JP Morgan reiterated its overweight stance on the company and said that after a 40% decline in the last month, the stock is now trading at just 0.7x PEG, which is significantly below the 1x average compared to its peers, while the Nifty has risen by approximately 2%.

29 percent upside potential

The brokerage said that the stock is worth a fair value of ₹4,900, which means a 29% upside from the current levels. The brokerage does not see any deterioration in the revenue or margin outlook and expects a recovery in both receivables and working capital in the next two quarters.

How much work does the company have?

The company's total receivables as of Q2 FY26 were Rs 1,360 crore, of which the smart meter segment accounted for Rs 690 crore. Approximately Rs 240 crore of this is related to legacy receivables pending for more than a year, which the company plans to collect through discounting by March 2026.

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Summary

Management stated that the contribution from smart meters is expected to decrease in the second half of the year, as the core business has a shorter working capital cycle.