KPIT Technologies rose by 6.62% today, trading at ₹1,430.10, after JPMorgan reiterated an Overweight rating on the stock, setting a target price of ₹1,900. This target implies a potential upside of 42% from the previous close of ₹1,342.30.
Key highlights from JPMorgan’s report:
- Near-term softness is transient: The brokerage highlighted that KPIT’s current challenges 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 is expected to remain a growth driver, reflecting strong demand in the automotive software sector.
- QIP funds utilization: JPMorgan emphasized that funds raised through QIP will likely be deployed for multiple tuck-in acquisitions, bolstering the company’s market position.
- Risk-reward profile: The brokerage sees a favorable risk-reward equation, with a base case potential upside of 42% and a limited bear case downside of 10%.
Stock performance details:
- Open: ₹1,374.85
- High: ₹1,431.60
- Low: ₹1,365.75
- Previous close: ₹1,341.25
- Volume: 25.14 lakh shares traded.
JPMorgan described KPIT as a “fallen hero that can rise again,” emphasizing its resilience and growth potential in the evolving automotive and mobility technology sector.
Market context:
Broader markets also traded positively, with the Sensex rising 0.63% to 80,754.40 and the Nifty gaining 0.58% to 24,416.15. KPIT Technologies outperformed both indices during the session, driven by the optimistic brokerage outlook.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.