KPIT Technologies has been given a 'Buy' rating by Geojit Financial Services, with a target price of ₹1,760. The company is expected to experience a revenue and PAT CAGR of 19% and 20% respectively from FY25E to FY27E, driven by recent deal wins, pricing advantages, and inorganic growth strategies.

In Q2FY25, KPIT reported a 20% year-on-year revenue increase in constant currency, supported by middleware architecture consulting and software integration services from key clients. The company's EBITDA margin improved by 21 basis points year-on-year, thanks to strong volume growth and a favorable currency mix. Despite ongoing investments in technology and salary hikes, margins are projected to stabilize between 20-21% for the fiscal year.

KPIT is focusing on growth in the mobility and autonomous sectors, utilizing its domain expertise through joint ventures and acquisitions. The Board has approved a plan to raise up to ₹2.88 billion through a Qualified Institutional Placement (QIP), indicating potential future acquisitions to enhance growth. Geojit values KPIT at a long-term historical average of 40x on FY27E EPS, reinforcing its positive outlook on the stock.