JP Morgan has reiterated its ‘Overweight’ rating on KPIT Technologies, setting a target price of ₹1,900. The brokerage considers KPIT a “fallen hero that can rise again,” attributing recent performance softness to temporary factors rather than structural issues. Key growth drivers include sustained investments in electric and hybrid vehicle technologies. The company’s recent Qualified Institutional Placement (QIP) aims to fund strategic mergers and acquisitions to enhance its portfolio.
JP Morgan projects a base case upside of 42%, with a bear-case downside of only 10%. This outlook follows a period of market correction, with optimism about KPIT’s strong positioning in the automotive tech sector.
In recent developments, KPIT reported robust financial performance for Q3 FY24, with a net profit growth of 55% year-on-year and constant currency revenue growth of 31.5% year-on-year.
The company has also expanded its presence in Europe by establishing a new software engineering center in Munich, aiming to strengthen its global footprint and better serve European clients.
Additionally, KPIT has been recognized for its innovation in mobility solutions, winning awards such as the FICCI CSR Award. The company continues to focus on developing next-generation mobility solutions, as showcased at CES 2024.
