India, Sept. 27 -- Kaynes Technology has shown strong revenue growth, but the rapid rise in working capital poses challenges for investors. While revenue has increased significantly, trade receivables have surged even more, indicating that a larger share of the revenue is not being converted into cash promptly. This situation raises concerns about the company's cash flow management.

Kaynes Technology India was recently trading around Rs 3,645 per share, with a market capitalization of roughly Rs 24,503 crore and a trailing P/E of around 70x. The stock's 52-week range was approximately Rs 2,995-Rs 7,705.

Receivables Are Rising Much Faster The scale of the increase is the first major warning signal. Trade receivables rose by roughly Rs 9...