Prabhudas Lilladher (PL) has upgraded KPIT Technologies to 'Buy' with a target price of Rs 230 as against current market price (CMP) of Rs 165 in its report.

Commenting on the investment rationale, the broking firm said, "KPIT has the distinctive advantage in Automotive & Allied Engineering ahead of its peers. This SBU continues to deliver margin in mid-20s and we expect these margins to be sustained.

KPIT's SAP SBU that caters to Automotive, Manufacturing and Energy & Utilities faced a slowdown due to technology reset happening with SAP ecosystem. We see the initiative of tail trimming low profitable clients and better preparedness with new technology will improve revenue momentum along with margin.

Earnings were challenged in FY14 due to SBU specific issues. We see these issues getting resolved in FY15 implying better revenue visibility and margin."

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