KPIT Tech's growth story may now warrant a second look

Once the market's high-flying tech play, KPIT Technologies' growth story is unraveling along with its stock that is down 38 per cent since last October. The tech firm is caught in the crossfire of tariff risks, a slowing auto sector and fierce Chinese competition. Europe, where KPIT generates 50 per cent of its revenue, and the US, responsible for a further 25 per cent, are facing distinctly different yet equally damaging headwinds. That's 75 per cent of its revenue under the duress of global trade disruptions and shrinking demand. Moreover, with over 80 per cent of its business tied to passenger vehicles, the company is directly exposed to a sector in flux. We lay out how the automotive software giant is coming under pressure and how it will take the hit. European auto market: The first domino to fall The automotive sector has long been KPIT's bread and butter. But the European market, its largest, is stutterin