KPIT once again came out with stellar results. This is their 17th consecutive quarter of growth.
So no problems with the results. On the concall, management mentioned challenges their customers are facing. Due to this, although they have maintained their annual revenue guidance of 18-22% and margin guidance of 20-21%, they have mentioned that their revenue would be on lower side of the guidance and margin would be at higher side of the guidance. (due to customer requests of offshoring some work to reduce cost). Also management mentioned that due to uncertain environment in Europe, their customers are taking longer to decide on any new projects. This could potentially impact their FY 26 revenue guidance.
This is the primary reason for the fall in the stock price today. But I feel this is great opportunity to accumulate (which is what I am doing) such a high quality stock. Also they are looking for few acquisitions (reason for QIP) which can strengthen their product offerings. Considering external environment in Europe, I think it is smart move as they will get much better bargains now.
Disclosure – Top holding in my PF. High conviction bet. Holding for last 4 years and adding more in every fall like today.
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