JPMorgan has reiterated an Overweight rating on KPIT Technologies, setting a target price of ₹1,900, which implies a potential upside of 42% from the current market price (CMP) of ₹1,342.30.
Key highlights from JPMorgan’s report:
- Near-term softness transient: The brokerage emphasized that the current challenges faced by KPIT are not structural, and it expects the company to recover and regain growth momentum.
- EV and hybrid investments: KPIT’s focus on EV and hybrid technologies will continue to drive its growth, albeit at a gradual pace, reflecting strong demand in the automotive software sector.
- QIP funds utilization: The funds raised through QIP are likely to be used for multiple tuck-in acquisitions, which could further strengthen KPIT’s capabilities and market position.
- Risk-reward profile: JPMorgan notes a base case potential upside of 42%, while the bear case downside is limited to 10%, highlighting a favorable risk-reward equation.
Stock performance: KPIT Technologies declined by 1.94% yesterday, closing at ₹1,342.30, as market sentiment remained cautious in the broader tech space.
JPMorgan considers KPIT a “fallen hero that can rise again,” emphasizing its resilience and growth potential in the evolving automotive and mobility technology sector.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.