India's KPIT Technologies falls 5% as Kotak says growth views unrealistic

KPIT Technologies

21/11/2023 06:08

** India's KPIT Technologies  KPIE.NS  shares down 5.4% to
1,536 rupees, their worst intra-day fall since July 21
    ** Stk has rallied 36% over past month without major
fundamental catalyst, Kotak Institutional Equities said in a
note
    ** Kotak says co's valuations excessive at 59X FY2025,
"unrealistic" growth expectations embedded in stk price
    ** KPIT deserves premium valuations due to strong
capabilities in high-growth area, but disagree with premium
magnitude - Kotak
    ** Kotak's stk fair value at 940 rupees, keeps "sell"
    ** Near-term strength in automotive engineering, research
and development spends adequately factored in stk price - Kotak
    ** Co lacks various software capabilities compared to pure
play IT companies and need investments - brokerage
    ** Including Tuesday's loss, KPIT shares up 26% YTD

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))