Hold KPIT Technologies, target arget Rs 166: IndiaNivesh

IndiaNivesh maintains a hold rating on KPIT Technologies with a 12-month target price of Rs 166. The company has already written-off all the receivables related to Copart and adequate provision is already created for claims.

"As a result, we do not see any major financial impact going-ahead due to this on-going legal battle. However, the company have to bear the lawyer and other legal charges, which could be in the range of $1.0-1.5 mn per year till the time issue is not resolved," said the report.

The stock is trading at 10.8x FY17E and 9.7x FY18E EPS estimate. "We expect relatively better performance going-ahead with some more improvement on the margin front," the report added.