KPIT Technologies’ shares dropped nearly 6% following the release of its Q2 FY25 results. On a quarter-on-quarter (QoQ) basis, the net profit was marginally down by 0.2% to ₹204.16 crore from Q1 FY25.
JPMorgan has maintained its overweight rating on KPIT Tech but has reduced its share price target to ₹1,900, reflecting a 15.9% potential upside from the current market price. The company lowered its FY25 constant currency revenue growth forecast to the lower end of the 18-22% guidance range, citing delays in deal ramp-ups and closures, along with a shift towards offshoring to provide cost efficiencies for clients.
JPMorgan also anticipates a softer second half for the company, with potential impacts on FY26 growth due to a weak exit rate. As a result, the brokerage expects a negative stock reaction to these developments.
As of 9:26 AM, KPIT shares were trading 5.98% lower at ₹1,536.85 on NSE.
