29-Oct-2026 08:54:59
JPM on KPIT Tech ; Upgrade to N from UW TP Rs 520
Over last four months stock has fallen 21% vs Nifty IT up 22%, & at 16x 2Y fwd PE it is one of relatively inexpensive stocks in sector Commentary has been consistent from peers that Auto growth in US and Asia is coming back even as the EU remains challenged 2Q27 print beat on both revenues and margins. Revenues grew 0.5% CC QQ vs expectations of flat revenues. 2Q growth came despite ramp downs in its top two clients (13% YY headwind on revenues) indicating underlying growth is even stronger. It is guiding for 2H growth to be better than 1H despite continued headwinds in top 2 clients as it expects stronger growth in the rest of the portfolio driven by PV clients in the US and Asia as well as CVs. Ebitda margins expanded 60bps QQ to 17.7% and came 40bps/20bps ahead of cons/JPMe . It is guiding for margins to improve every quarter as revenues grow and operating leverage starts playing out.
Z-TECH (INDIA) LIMITED