Apr'25 View on KPIT Technologies Ltd

KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With 13000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables customers accelerate implementation of next generation mobility technologies . With development centers in Europe, USA, Japan, China, Thailand and India. The Company is facing strong headwinds due to Tariffs and looks like will face further pressure and fall below 1,000 level due to following issues. • Weak revenue growth in Americas with declining EBITDA margin. • Sharp sequential decline in Americas and RoW profitability. • KPIT’s Q3FY25: Decent performance in a challenging demand environment. • Co. maintained its FY25E growth outlook of 18-22% & raised its EBITDA margin guidance to 21%+. • Co. has been engaging with auto OEMs to align offerings with clients’ cost takeout priorities, enabling it to build a robust pipeline. • The company is well placed to continue a healthy growth rate in FY26E. • We make marginal tweaks to our estimates and raise the fair value to Rs975