KPIT Tech shares tumble over 17%. Here's why - The Economic Times

Shares of KPIT Technologies tumbled over 17% to Rs 760 in Monday's trade on BSE after the global brokerage firm JPMorgan initiated coverage on the stock with an underweight rating and a target price of Rs 520, a potential downside of 44% from Friday's closing price of Rs 925.

JPMorgan’s target for the stock is driven by lower structural margins, risks from single vertical and high client concentration, and excessive valuations, according to media reports.

Meanwhile, as per Trendlyne data, the average target of the stock is Rs 786, a downside of 15% from Friday's closing price of Rs 925. The consensus recommendation from 11 analysts for KPIT Technologies is a hold.

Out of these analysts, seven have strong buy and buy ratings, while three have strong sell and sell ratings, and the remaining one has a hold rating.

At 2.49 am, the stock was trading 14.4% lower at Rs 792 over its last day's closing price of Rs 925/share. However, on a year-to-date basis, the stock has risen 14%, while it has surged 28% in the last year. It has also given multibagger returns of over 2,130% in the last three years.
Technically, KPIT Tech is trading below five out of eight SMAs. The stock traded lower than the 5-day, 10-day, 20-day, 30-day, and 50-day moving averages but higher than the 100-day, 150-day, and 200-day moving averages.

It reported a 49% increase in total income to Rs 938 crore in Q3FY23, against Rs 630 crore in Q3FY22. The company’s net profit also rose 48% to Rs 104 crore, compared to Rs 70 crore in Q3FY22.
The company provides embedded software and product engineering services to automotive companies. It has engineering centers in Europe, the USA, Japan, China, Thailand, and India.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Adblock test (Why?)

KPIT Tech shares tumble over 17%. Here's why - The Economic Times
Read More