KPIT Tech

All Info Tech stocks are in the same position. I have Mindtree which has also warned of a sluggish future. The best time to buy these stocks is when they are down. These are excellent businesses with free cash flows and a debt-free/ low debt status. One should buy and hold for the long-term without worrying about short-term fluctuations.

 

Research report on KPIT Technologies by Motilal Oswal

KPIT Technologies: Deferral of a project and cross currency movement to impact revenues
20-Mar-2015

Project specific issues will drive weakness in 4QFY15 revenues, compounded by higher cross currency impact – as growth will come be dominated by non-US regions.

EBITDA margin will be impacted by revenue deferrals, expected to decline 100- 150bp QoQ.

Outlook for FY16 revenue growth is relatively softer due to weakness in Cummins and Energy portion of IES. CC USD revenue growth could be at the lower end of the industry band.

Margins will be weaker too - target of FY16 exit margins of 15% instead of full year margins of 15-16%.

Cutting FY16/FY17 EPS estimate by 9%/5%. Maintain Neutral.

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Pl also see research report by Karvy on the Information Technology sector where they have explained why the stocks are subdued at present:

https://rakesh-jhunjhunwala.in/best-infotech-stocks-to-buy-now-karvy-report/