Shares of KPIT Technologies Ltd, once a standout performer in the midcap IT segment, are expected to endure further pressure. Market expert Akshay Bhagwat, Senior Vice President of Derivatives Research at JM Financial Services, warns that the stock could slip to the Rs 460-470 range before establishing a more stable bottom. This outlook comes as long-term investors grapple with significant losses following a prolonged two-year decline in the stock's value.
Bhagwat, responding to investor queries on September 23, 2026, indicated that while the stock hovers near an important support level of Rs 525, this is likely only a temporary floor. He cautioned that any relief triggered by this support would be minimal, and a more substantial recovery is not anticipated in the immediate future.
Broader IT Sector Weakness a Key Factor
The expert's assessment underscores a wider sentiment of weakness across the Indian information technology sector. Bhagwat noted that the IT space remains 'not out of the woods,' with concerning news flow impacting investor confidence. This broader industry struggle is a significant factor in KPIT's trajectory, despite its niche focus on auto-tech and engineering IT.
KPIT Technologies' previous status as a major wealth creator in the focused midcap IT space makes the current downturn particularly painful for retail investors who bought shares at higher valuations. The ongoing correction is thus seen not merely as a company-specific issue but as reflective of a challenging period for the entire IT segment.
What Investors Should Consider Now
For investors willing to maintain their positions, Bhagwat's advice suggests a tactical approach. He reiterated that 'some more pain is left in the stock' and suggested that averaging down on dips, particularly around the Rs 470 mark, could be a strategy for long-term holders. However, he was clear that 'some serious recovery is not seen at least in the next few months,' based on current technical trends.
The path to recovery for KPIT Technologies is expected to be uneven and gradual, requiring considerable patience from investors. The current environment demands a disciplined strategy rather than an expectation of an immediate rebound.