Shares of KPIT Technologies dropped by as much as 15 percent on October 24 after JPMorgan lowered its target price to Rs 1,900 per share. This comes after the company revised its FY25 constant currency revenue growth outlook to the lower end of its 18-22 percent guidance range, mainly due to delays in deal ramp-ups and closures.
JPMorgan expects the guidance cut to lead to a softer H2FY25 and cautions that a weak exit rate could hamper FY26 growth as well. The brokerage had an 'Overweight' rating on the stock.
At 12.23 PM, shares of KPIT Tech traded 13.5 percent lower at 1,414. October 24 marked the fifth session of decline for the stock. KPIT Tech's shares have declined over 5 percent since the start of 2024, underperforming the Nifty 50 which has gained over 12 percent in the same period.
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In an interview with CNBC-TV18, CEO Kishor Patil acknowledged project delays that led to the cautious guidance but reassured that the underlying growth remains strong. Patil also revealed plans for strategic acquisitions in the next six to nine months.
For the quarter ended September, KPIT Tech's net profit remained flat at Rs 204 crore, compared to the previous quarter, while revenue rose by 8 percent to Rs 1,471 crore. EBITDA increased by 4 percent to Rs 301 crore, with an operating profit margin of 20.5 percent.
Additionally, the KPIT board approved raising up to Rs 2,880 crore through a Qualified Institutional Placement (QIP) or other permissible methods, in one or more tranches.
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