India's KPIT Tech falls nearly 6% on negative growth view, block deals

KPIT Technologies

03/04/2023 08:19

** Shares of KPIT Technologies  KPIE.NS  fall as much as
5.85%, steepest intraday decline in  over three months since
Dec. 23, 2022, to 871 rupees
    ** Fall in the stock of the tech firm, which focuses on
automobile engineering and mobility solutions, comes after JP
Morgan initiates coverage on KPIE, with an "underweight"
recommendation
    ** KPIE likely to see a potential 44% downside in FY2024,
say JP Morgan
    ** Adds slowdown in growth could be a key de-rating catalyst
for KPIE
    ** JP Morgan also identifies margin headwinds from merger
related integration costs as a key risk for KPIE
    ** Target price has been set at 520 rupees, an implied
downside of 44%
    ** About 229,880 shares of KPIE also change hands in two
blocks as of 12:41 p.m. IST, at a price range between 910 rupees
and 910.15 rupees per share - Refinitiv data
    ** Trading volume is 2.25 mln shares as of 12:41 p.m. IST,
more than the 30-day avg of 1.93 mln shares
    ** Of the 10 analysts tracking KPIE, five maintain "buy",
three suggest "sell" and two recommend "hold"; median TP is 690
rupees - Refinitiv data
    




 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))