Kaynes Technology: Brokerages Split on Upside and Cash Concerns

Kaynes Technology is a company that builds electronic parts and gadgets for other businesses.

It is growing very quickly — in the last three months it earned more money than before.

But some people who study companies, called analysts, cannot agree on whether its stock is a good investment.

One team, Motilal Oswal, says the company's shares could go up by about 30%.

Other teams, like Nuvama, Nomura and JM Financial, are worried.

They say the company is spending lots of money and owes more money than before.

Imagine a lemonade stand that sells lots of lemonade but has to buy lemons before customers pay — until the money comes back, it looks cash poor.

The company is also building big new businesses for computer chips and circuit boards, which costs a lot of money.

So some experts say wait and watch, while one says keep buying.