KPIT Tech Shares: The ceasefire between Iran and Israel has injected enthusiasm into the market. The Nifty is trading near 25,300, up more than 300 points. Bank Nifty has also jumped 700 points, approaching new highs. Strong buying is being seen in mid-cap and small-cap stocks. However, despite this rally, KPIT Tech shares have seen a sharp decline today, drawing everyone’s attention. The stock has fallen by nearly 5%.
Why the Decline in KPIT Tech?
Looking into the reasons behind this drop, the company’s management’s weak commentary has disappointed investors. As a result, the stock has been heavily beaten down today. With a fall of over 5%, KPIT Tech has become the top loser in futures trading. The company has stated that demand remains uncertain, projects are being delayed, and its business outlook has disappointed the market. Rising geopolitical tensions and tariffs have created an uncertain business environment.
The management mentioned that the deal pipeline remains healthy, but the conversion rate is slower than expected. Demand trends in Europe appear positive, but demand in the U.S. and Asia remains uncertain. The pace of work on orders is slow. No lump-sum earnings are expected in the first half of fiscal year 2026. Additionally, foreign exchange movements may put pressure on other income.
Brokerage Opinions on KPIT Tech
Kotak Institutional Equities has advised selling the stock with a target price of ₹1,000. The brokerage has cut earnings estimates for fiscal years 2026-28 by 3-4%.
Meanwhile, JP Morgan has given an overweight rating on the stock with a target of ₹1,500. The brokerage believes there may be a dip in the first quarter of fiscal 2026, followed by a return to growth in the second quarter. Organic growth estimates for fiscal 2026 have been reduced by 4%, and the CAGR forecast for fiscal years 2026-28 has been lowered from 16.5% to 14.5%.
Disclaimer: This article is just for information. It should not be treated as investment advice in any way. Investing in the stock market is based on risk. Be sure to consult your financial advisor before investing in the stock market.
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