HDFC Securities issued Neutral call on KPIT Technologies. The stock broker retains neutral for target of Rs 158 against current market price of Rs 172 in its report.

Commenting on investment rationale, the stock broker said, "We believe that lumpiness in revenues cannot be ruled out, owing to KPIT’s high exposure to ERP consulting and implementation projects. Hence, we prefer to desist from upgrading our growth assumptions. KPIT has missed FY14 revenue guidance by a wide margin. The company delivered 8.2% USD revenue growth vs. initial guidance of 13.5-15% growth."

"With a muted start, KPIT would require a 5.2-6.3% CQGR for the remaining three quarters to meet the FY15 revenue guidance of USD 498-506 million. This appears ambitious considering that the company has delivered only 1.8% revenue CQGR for the past six quarters. Hence, we retain our USD revenue growth estimate of 9.5% for FY15. This implies a 3.5% CQGR for the remaining three quarters. However, we believe that 2QFY15 could be stronger on account of the full impact of consolidation of the I-Cubed acquisition," it added.

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