KPIT Tech share falls due to JPMorgan target rating on stock. JPMorgan give target price of 520 when stock traded at 250 price range and at that time stock is undervalued.
KPIT Technologies is a global technology company that offers software solutions and services to various industries, including automotive, manufacturing, energy, utilities, and life sciences. The company’s core business offerings include:
Digital transformation services: KPIT offers digital transformation services to help organizations streamline their business processes, improve customer engagement, and reduce costs.
Automotive engineering: KPIT has a strong focus on the automotive industry and offers engineering services to automotive OEMs and suppliers.
These services include software development for vehicle systems, advanced driver assistance systems (ADAS), and autonomous driving solutions.
Product engineering: KPIT offers end-to-end product engineering services to help companies develop and launch new products faster.
Why JPMorgan Downgrade KPIT Technologies Target
JPMorgan is an American multinational investment bank and financial services company. It is one of the largest banks in the world.
JPMorgan Chase offers a range of financial services to its clients, including commercial banking, investment banking, asset management, and private banking.
- TATA Technologies IPO : - Tata technologies come with an IPO means negative news for KPIT Tech. KPIT Tech and Tata Technologies both comoany was in same sector but tata have advantage over KPIT Tech due to TATA Motors. JPMorgan see KPIT need to get big orders win to compete with Tata Technologies.
- KPIT Tech High Valuation :- KPIT Tech currently trading of 72 P/E multiples which was highly overvalued as compared to other IT stocks.
- Cyclical Auto Sector Business :- Due to cyclical auto sector business KPIT Tech will not give investor above 20 percent growth consistently.
These are three main big reasons JPMorgan downgrade KPIT Tech stock target price and sees 44 percent downside. JPMorgan see target of 500 rupees in next coming years.
Why KPIT Tech Share is Falling
KPIT Tech stock falls due to JPMorgan see 45 percent downside in next years. Stock fall in intraday more than 19 percent and make low of 760 and high of 924.
In morning stock was traded at 924 but due to target downside stock fall to 760 and at the time of market close stock again bounce back to 800 support level.