KPIT Tech shares: FPI holding in the IT firm stood at 23.42 per cent as on March 31, as per a BSE filing, which was the highest since September quarter of 2019. FPIs held 20.26 per cent stake in KPIT Tech as on December 31, 2022
KPIT Technologies (KPIT Tech), whose shares recently got battered following JPMorgan's 44 per cent downside projection, were lapped up by foreign portfolio investors (FPIs) in the March quarter.
The FPI holding in the IT firm rose 316 basis points sequentially to 23.42 per cent as on March 31, as per a BSE filing, which was the highest since September quarter of 2019.
FPIs held 20.26 per cent stake in KPIT Tech as on December 31, 2022, 16.88 per cent in the September quarter and 15.99 per cent stake in the June quarter, as per data compiled with AceEquity.
Key derating catalysts for KPIT Tech include a slowing growth beyond FY24 to less than 20 per cent, with reverse discounted cash flow (DCF) ask rate at 24 per cent for the next 10 years. JPMorgan also cited scarcity premium going away with the announced IPO of Tata Technologies that generates 88 per cent of revenues from auto ER&D segment.
The stock has an average target of Rs 794 on the stock, based on 11 analyst recommendations. JPMorgan said it likes KPIT's focus on fast-growing auto vertical but would wait for an attractive entry point.
