JPMorgan has lowered its target price on KPIT Technologies to ₹1,400 from ₹1,500 per share, while retaining its overweight stance. The downgrade in valuation comes after the stock fell nearly 10% on September 30 without any fundamental trigger, a correction that JPMorgan believes has brought it in line with the broader sector’s underperformance.
The brokerage said that while the decline has created an entry opportunity, investors will need patience as FY26 is likely to be a “washout year” with expectations of 1% organic revenue de-growth. It expects growth to rebound strongly in FY27 and FY28 with a 12–16% trajectory. Reflecting this tempered near-term outlook, JPMorgan has cut its revenue and EPS estimates for FY26–28 by 4–6% and reduced its target multiple to 36x from 40x.
The note added that KPIT now represents a “show me” play, with any meaningful rally hinging on evidence of quarterly revenue acceleration and large deal wins. While the medium-term outlook remains constructive, the near-term performance will likely remain subdued, demanding a longer investment horizon.
Disclaimer: The views and recommendations above are those of JPMorgan. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
