Shares of this multibagger IT stock jumped 3 percent in Friday’s trading session after the company intimated about a strategic acquisition of a 13 percent stake in a Switzerland-based company.
With a market capitalization of Rs 37,029.97 crores, the stocks of KPIT Technologies Limited opened their trading session on Friday at Rs 1,310.05 and currently trades at Rs 1,352.
The scrip witnessed an intra-day high, also marked as the fresh 52-week high price, of Rs 1,357.90 indicating a gain of around 3 percent compared to the previous close of Rs 1,315.95 apiece.
Such bullish movements in the stock price were observed after the company, through a regulator filing with the exchange, intimated that the Board of Directors has approved a strategic acquisition of 13 percent in “N-Dream AG”, a cloud-based Game Aggregation Platform company based in Switzerland.
The consideration for the above agreement is decided to be a ‘cash’ consideration, and, the same is 3 million Euros. The agreement entered into also possesses an option to increase its shareholding further. The acquisition will be completed by 15th December 2023
Digging into the recently announced company results, the operating revenues as well as net profit figures were on the rise with the former increasing from Rs 1,097.62 crores during Q1FY23-24 to Rs 1,199.16 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from marginally from Rs 134.44 crores to Rs 141.4 crores.
Keeping a purview of one year, the company’s stock has just turned multibagger and delivered returns of 104 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the stock a year ago, it would have converted to Rs 2.04 lakhs.
As per the latest shareholding pattern data for the September 2023 quarter, the company’s Promoters hold a 39.47 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 25.69 percent in the company.
Deriving a majority of revenue from the American regions, KPIT Technologies Limited is a global technology company that specializes in providing IT Consulting and Product Engineering solutions and services to various industries including Automotive, Energy, Manufacturing, and Utility companies.
Written by Amit Madnani
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