Small Cap IT Software Stock Slips 12% Intraday, JPMorgan Downgrades Rating

Share of small cap IT Software company, KPIT Technologies witnessed a sharp decline of 12.49% soon after leading global brokerage house JPMorgan sought to initiate coverage with underweight rating and assigned a target price of Rs 520 apiece. If the last trading price of KPIT Technologies is taken into consideration it indicates a downside of 35%.

According to the global brokerage, KPIT Technologies needs to win substantial orders every year to maintain its growth above 20%, which it feels as a challenge amid the cyclical nature of the auto industry. JPMorgan anticipates lower structural margins, risks from single vertical, high client concentration and excessive valuation for KPIT Technologies. Check details below:

KPIT Technologies Stock Performance: Last trading price of KPIT Technologies is Rs 809.50 apiece. Its 52-week high price is Rs 946.50 apiece and 52-week low price is Rs 440.00 apiece, respectively. Its market capitalisation is Rs 22,191.94 crore.

KPIT Technologies Return: The stock delivered massive returns to investors over the years. It gave return of 33% in last 1-year, 360% in last 2-years, and 2055% return in last 3-years.

KPIT Technologies About: KPIT Technologies is a global partner to the automotive and Mobility ecosystem for making software-defined vehicles a reality. It is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 10000+ automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates its clients' implementation of next-generation technologies for the future mobility roadmap. With engineering centers in Europe, the USA, Japan, China, Thailand, and India, KPIT works with leaders in automotive and Mobility and is present where the ecosystem is transforming, according to its official website.

Disclaimer:The stock has been picked from the brokerage report of JPMorgan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.