KPIT shares fall 15% after slowdown warning, lose over ₹2,300cr
Business
KPIT Technologies's stock dropped 15% on Tuesday, losing over ₹2,300 crore in market value.
The sudden fall happened after the company warned of an unexpected slowdown from European clients, and brokerages linked the slowdown to BMW and Volkswagen.
KPIT also warned that profits will shrink even more than revenue this quarter since there isn't much time to cut costs.
Brokerages downgrade KPIT, firm seeks recovery
Major brokerages like JPMorgan and JM Financial downgraded KPIT's stock and slashed their future earnings estimates, expecting another year of slower growth.
Still, KPIT says it's looking for new opportunities in the US and India, plus AI projects and fresh clients, and expects things to pick up again by Q4 FY27.