KPIT Tech Share Price Falls Nearly 10%, Marking Fifth Day Of Decline

KPIT Technologies Ltd.'s share price fell nearly 10% in early trade on Thursday. This is the fifth consecutive day of decline in the stock, taking the loss so far to 17%. The scrip took a hit a day prior after the release of its second quarter earnings.

The software firm posted a 0.2% sequential fall in consolidated net profit at Rs 204 crore for the quarter ended September. This was above the Rs 183-crore estimate by analysts tracked by Bloomberg.

Revenue increased 7.8% quarter-on-quarter for the three months ended September, reaching Rs 1,471 crore. Analysts had projected a revenue of Rs 1,453 crore.

KPIT Tech said $207 million worth of deals closed in the quarter and healthy pipeline level remains across segments.

The board also approved raising funds up to Rs 2,880 crore through qualified institutional placement.

KPIT Technologies provides engineering research and development services to automotive companies. Popularly known as KPIT, the company is headquartered in Pune.

KPIT Tech share price tanked 9.85% to Rs 1,473.50 apiece. It was trading 8.7% lower by 10:30 a.m., compared 0.15% decline in the benchmark Nifty 50.

The stock has risen 29% in the last 12 months and fallen 2% on a year-to-date basis. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 44 .

Of the 17 analysts tracking the company, 10 have a 'buy' rating on the stock, five recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target of Rs 1,797.5 implies a potential upside of 22%.