Target: ₹2,120

CMP: ₹1,873.40

We attended Coforge Investor Day recently. Strong growth over the years could be attributed to: stable leadership for the past eight years, with hyperspecialised industry expertise in the verticals it operates, its proactive approach in providing industry-specific solutions to client’s business problems rather than waiting for Request for Proposal (RFP) floating.

The company clarified that it is not looking to invest in the data centre business. It may look at a few M&A opportunities but stated these opportunities will be considered to gain access to fortune clients rather than filing up any capability gaps. The company sees strong growth opportunities in the healthcare business in the US albeit it is small business.

Coforge is also looking to close 20 large deals in FY26 vs 14 in FY25.

Management’s proactive approach along with stable leadership yields strong revenue growth. Fresh order intake of $3.5 billion and executable order book at $1.5 billion as on FY25 along with an aspiration of closing of 20 deals likely to provide strong revenue visibility. We tweak our USD revenue estimates for FY27 to 14 per cent (from 13 per cent).

We maintain Accumulate with a higher TP of ₹2,120 from ₹2,010 based on 39x (unchanged) FY27E P/E.

Key risk is slower-than-expected growth.

Published on December 9, 2025

Embattled airline IndiGo’s operations are stabilising, while other airlines are functioning normally, said Civil Aviation Minister Ram Mohan Naidu on Tuesday.

Speaking in Lok Sabha, the minister said that IndiGo’s flights, which dropped to 706 on 5 December, have recovered to over 1,800 and are expected to rise further.

He pointed out that other airlines as well as airports are operating normally without crowding.

Accordingly, the minister informed the House that refunds, baggage tracing and passenger support measures remain under continuous supervision of the ministry.

Besides, he said accountability will be ensured, as the Directorate General of Civil Aviation (DGCA) has issued show-cause notices to IndiGo’s senior leadership and commenced a detailed enforcement investigation.

Furthermore, Naidu said that depending on the outcome of the investigation, strict and appropriate action as empowered under the Aircraft Rules and the Aircraft Act will be taken.

Civil Aviation Minister Rammohan Naidu briefs Lok Sabha on Indigo disruptions

Civil Aviation Minister Rammohan Naidu briefs Lok Sabha on Indigo disruptionsVideo Credit: Businessline

He reiterated that no airline, however large, will be permitted to cause hardship to passengers through planning failures, non-compliance or non-adherence to statutory provisions.

The minister said that safety in civil aviation is non-negotiable.

According to Naidu, India is a founding member of the International Civil Aviation Organisation and remains committed to the highest global safety standards.

Notably, he cited that the revised flight duty time limitations (FDTL) norms are scientifically designed to prevent pilot fatigue.

He added that DGCA has adopted a phased-wise implementation plan for FDTL in consultation with stakeholders.

IndiGo, Naidu said, had assured full compliance with these norms and confirmed its preparedness to undertake its winter schedule.

However, prima facie, it was observed that internal rostering disruptions led to large-scale cancellations, causing inconvenience to thousands of passengers, the minister said.

Consequently, IndiGo has been directed to restructure its operations, add reserve crew capacity, improve passenger handling and restore normal schedules without delay.

Apart from this, enhanced oversight on the ground continues, he said, adding that passengers’ interests have been at the centre of every decision taken by the Government.

Till now, the Centre has intervened to cap fares so that no passenger would be exploited due to sudden demand spikes and opportunistic pricing.

Meanwhile, the airline was ordered to issue refunds promptly, and more than Rs 750 crore has already reached passengers.

For passengers who opted for rebookings, the same were completed without any additional charges.

The Ministry of Civil Aviation (MoCA), he said, is monitoring each case of baggage handling and ensuring that communication with passengers is timely and dignified.

As per the minister, the process of refunds and baggage handling is in its final stages.

Going forward, the minister said the Centre is determined to build a more robust and competitive aviation ecosystem.

Notably, through its policies, the Centre is encouraging more new airlines to start and operate in India, ensuring fair access to airport capacity and eliminating any possibility of duopoly in connectivity and pricing.

More airlines, he said, mean more choice, more affordability and more resilience for passengers.

In the last decade, Naidu cited that Indian aviation has evolved to become more inclusive.

He pointed out that India has emerged as the world’s fastest growing aviation market, with year-on-year passenger growth of around 12 per cent.

India is already the third biggest domestic aviation market, with significant potential for future expansion, Naidu said adding that the Centre’s policies will ensure that this growth trajectory remains intact.

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Published on December 9, 2025

Shares of Kaynes Technology staged a recovery (gaining 7 per cent) on Tuesday after a steep and extended decline that saw the stock lose nearly 30 per cent over the past five trading sessions. The turnaround comes a day after the company issued a detailed clarification addressing concerns raised in recent analyst reports.

In its response, the integrated electronics manufacturing services (EMS) company stressed that the issues flagged were overstated and largely unfounded.

Kaynes Tech calls out report conclusions “factually incorrect”

Kaynes acknowledged only one error in its financial statements, described as a “small typographical omission” in the notes relating to a related-party transaction within a subsidiary. The discrepancy, the company said, has already been corrected and will be accounted for in future compliance processes.

The management further stated that several conclusions drawn in reports by Kotak Institutional Equities, BNP Paribas and Investec were “factually incorrect.” It reiterated that there were no inconsistencies or ambiguities in its books. All underlying financials, it said, remained accurate.

Clarifications on goodwill, asset capitalisation and accounting treatment

One of the major concerns raised in recent reports centered on goodwill recognition following Kaynes’ acquisition of Iskraemeco and Sensonic for ₹88.3 crore. The company reported recognising ₹114 crore in goodwill; however, analysts noted that the consolidated balance sheet did not reflect a corresponding rise.

Kaynes addressed this by explaining that the transactions were accounted for in accordance with Ind-AS 103 standards. The difference between consideration paid and net assets acquired was netted off to present the statements in what it termed a “relevant and reliable manner.” Additionally, intangible assets worth ₹115 crore —arising from customer contracts linked to smart metering technology—were classified under technical know-how.

The firm also dismissed claims of mismatches between fixed asset additions and cash flow reporting. It clarified that the ₹950 crore purchase of fixed assets recorded in the cash flow statement includes ₹780 crore worth of PPE, CWIP and intangibles, alongside ₹1.7 billion expended on right-of-use assets, adjusted for subsidies.

Receivables, working capital and business expansion

Addressing concerns around rising receivables and elongating working capital cycles, Kaynes noted that ₹687 crore of smart metering receivables as of September included longer-tenure contractual components which will be discounted and phased out. The company expects ₹240 crore of this amount to be cleared shortly.

The management attributed the broader working capital expansion to industry-standard EMS dynamics and its ongoing investment cycle. Long-term capex initiatives—including OSAT and PCB capacity expansions funded through QIP proceeds and subsidies—have temporarily inflated working capital requirements.

Strong revenue growth despite market volatility

Despite recent turbulence in its share price, Kaynes reported robust financial performance. FY25 revenue stood at ₹2,720 crore, marking a 51 per cent year-on-year rise. This growth was driven largely by the integration of Iskraemeco’s smart metering business.

Promoter holding also remains steady at around 63 per cent, with the company confirming that no dilution is planned.

Market Reacts to Clarity

Tuesday’s rebound suggested that investor sentiment may be stabilising as the company works to dispel doubts and reinforce confidence in its accounting and operational transparency. While the stock has yet to recover all of its recent losses, the immediate uptick reflects the market’s positive reception to the management’s detailed explanation.

As Kaynes continues to navigate scrutiny and expand its strategic capabilities in the EMS and smart metering segments, investors will be watching closely to see whether the clarification translates into sustained market recovery.

The stock traded at ₹4,033 on the BSE at 11.06 am, higher by 6.14 per cent, hitting an intraday high of ₹4,065 against the previous close of ₹3799.60.

Published on December 9, 2025