KPIT Technologies shares reclaim Rs 1,200 mark after six days, here's why 

Shares of KPIT Technologies reclaimed the Rs 1,200 mark after six days in the afternoon session today. The rally in the stock came after JPMorgan reiterated its ‘Overweight’ stance on the auto engineering and R&D stock.  KPIT Technologies shares rose 6.52% to Rs 1214 today against the previous close of Rs 1139.60. Later, the stock closed 6.15% higher at Rs 1210. The stock touched a 52 week high of Rs 1483.80 on January 7, 2025. A total of 0.77 lakh shares of the firm changed hands amounting to a turnover of Rs 9.15 crore on BSE. Market cap of KPIT Technologies rose to Rs 38,333 crore today.

In a year, the stock is down 18 per cent and lost 20 per cent in two years.  

KPIT Technologies stock is down 18% in a year. 

JPMorgan is of the view that easing trade-related concerns and lower tariff uncertainty have prompted global OEMs to restart R&D programmes that were earlier put on hold, although the recovery is expected to be gradual.

ER&D stocks have given returns below expectations over the past year, with the Nifty IT index down 14%. Among auto-focused IT players, Tata Technologies has fallen 27%, Tata Elxsi is down 19%, and KPIT Tech has fallen 20% over the same period.

According to the brokerage, KPIT has the highest exposure to auto technology spends at nearly 100% compared with about 82% for Tata Technologies and 55% for Tata Elxsi. This deep exposure makes KPIT the preferred play. 

The current investments are being led by hybrid vehicle programmes rather than electric vehicles, said the brokerage adding that Europe is leading this recovery, followed by APAC, while the US market is still a couple of quarters away from a meaningful rebound.

In terms of technicals, the relative strength index (RSI) of KPIT Technologies stands at 37.3, signaling the stock is trading neither in the overbought nor in the oversold zone. KPIT Technologies shares are trading higher than the 10 day, 20 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.   

KPIT Technologies Limited is a technology company, which is focused on automobile engineering and mobility solutions. The company offers electronic and mechanical engineering solutions to its customers. It also analyses data for diagnostics, maintenance and tracking of assets and related connectivity solutions, including data and analytics beyond embedded or mechanical engineering and their connectivity and integration with back-end information technology (IT) systems and platforms for the automobile and mobility sector.