Kaynes Technologies and Zaggle Prepaid Stocks Plummet Amid Weak Earnings Reports
Kaynes Tech, Zaggle Prepaid stocks extend decline; tank up to 27% in 2 days
Business Standard
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Shares of Kaynes Technology India and Zaggle Prepaid Ocean Services have dropped up to 27% in just two days following disappointing Q4FY26 earnings. Kaynes reported a 24% decline, reaching a 52-week low, while Zaggle's shares fell 9%, reflecting weak operating cash flows. Analysts have downgraded both stocks amid concerns over profitability and cash flow execution.
- 01Kaynes Technologies' share price fell to ₹3,182.85, marking a 52-week low, after reporting weak Q4 earnings and negative cash flows.
- 02Zaggle Prepaid's stock price dropped to ₹207.30, with a total decline of 27% in two days due to weak operating cash flows.
- 03ICICI Securities highlighted Kaynes' elevated employee costs and significant working capital concerns, with net working capital days at approximately 125 days.
- 04Analysts at JM Financial downgraded Kaynes based on missed revenue guidance and a working capital cycle of 179 days.
- 05Zaggle's management projects a 25-30% standalone revenue growth for FY27, despite current cash flow challenges.
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Shares of Kaynes Technology India (Kaynes) and Zaggle Prepaid Ocean Services (Zaggle) have seen significant declines, with Kaynes falling 24% and Zaggle dropping 27% over two trading days, following disappointing Q4FY26 earnings reports. Kaynes' stock hit a 52-week low of ₹3,182.85 due to negative cash flows and reduced revenue guidance, prompting a downgrade from global brokerage JPMorgan. Analysts from ICICI Securities noted that Kaynes is struggling with elevated employee costs and a concerning working capital cycle of approximately 125 days. Meanwhile, Zaggle's shares fell to ₹207.30 as it reported weak operating cash flows, although its management remains optimistic about future growth, projecting a 25-30% increase in standalone revenue for FY27. Despite the current downturn, brokerages like Equirus Securities have retained a 'Long' rating on Zaggle, citing potential growth driven by AI product development and market expansion. Both companies face scrutiny regarding their near-term profitability and cash flow execution.
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The decline in stock prices may affect investor confidence and impact funding for future projects, potentially leading to tighter financial conditions for both companies.
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