KPIT Tech share price at Rs 470 or Rs 815: What JPMorgan, Investec, others say

KPIT Technologies Ltd shares attracted mixed views from analysts, with the highest target price on the stock standing at Rs 815 and lowest at Rs 470 apiece, Bloomberg data compiled by Business Today post the IT major's Q1 results suggested. The consensus target on the stock at Rs 669 implied 4.7 per cent upside potential post the IT firm's Q1 results.   
  
Axis Capital has cut its rating on the stock to 'Sell' from 'Reduce' with a fresh target of Rs 470 from Rs 680 earlier. ICICI Securities cut the target on the stock to Rs 670 from Rs 830 earlier. Ambit Capital reduced its target to Rs 480 from Rs 485 while maintaining its 'Sell' on the stock.

JPMorgan maintained its 'underweight' and a target of Rs 550. Choice set a target of Rs 740 on KPIT Tech, Dolat Capital at Rs 700, Anand Rathi at Rs 651, JM Financial at Rs 620, 360 ONE Capital at Rs 580 and IIFL at Rs 470.

At 9.21 am, the KPIT Tech stock was trading 5.26 per cent lower at Rs 605. Choice said KPIT's Q1 results were better than the management's initial expectations but remained soft, with continued weakness for couple of large automotive clients, weighing on revenue growth and margin.

That said, KPIT's diversification strategy across clients, geographies, mobility segments and AI-led products is increasingly demonstrating resilience, Choice said adding that there is a reduced dependence on traditional passenger vehicle programs.

"Encouraging traction across AI-defined mobility, vehicle engineering, digital cockpit, autonomous technologies and after-sales solutions, together with a healthy Products & Solutions pipeline and $257 million of deal wins, reinforces our confidence in a stronger H2FY27," it said.

360 ONE Capital said while the current KPIT Tech valuation appears reasonable, a meaningful pick-up in revenue growth will be essential for rerating. It maintained its 'Hold' rating on the stock.

MOFSL said KPIT’s H1 is still expected to remain subdued, with recovery likely in H1 and sequential growth to be seen from Q4, where it built in 3 per cent QoQ CC growth.

"The auto industry has remained soft due to Chinese competition, geopolitical uncertainty, and elevated input costs stemming from the ongoing war, with European OEMs disproportionately impacted (50 per cent of revenue), leading to job cuts, profit warnings, pay cuts, and restructuring across the ecosystem. While there have been no deal losses in Europe so far, the concern remains with the timing of deal closures and conversion to revenue," it said.

MOFSL said KPIT may continue to see near-term weakness as it is grappling with global pressure in the automotive industry, along with geography and clientspecific weakness.