India’s software and consulting industry is projected to generate $254 billion in revenue for FY24, reflecting a 3.8% year-on-year growth. This sector, a cornerstone of India’s economy, is increasingly driven by advancements in artificial intelligence and cloud computing, positioning the nation as a global tech leader.
KPIT Technologies Ltd has a market capitalization of Rs 37,435.71 crore, the shares were trading at Rs 1,365.55 per share, decreasing around 3.08 percent as compared to the previous closing price of Rs 1,408.85 apiece.
Brokerage Recommendations:-
Axis Securities, one of the well-known brokerages globally, gave a ‘buy’ call on the IT stock with a target price of Rs 2,150 apiece, indicating a potential upside of 57 percent from Friday’s price of Rs 1,366.95 per share.
Target Rational:-
The UK market is seeing increased demand for Engineering Research and Development (ER&D) services, fueled by cost optimization deals and quicker decision-making. KPIT’s strong execution capabilities are driving revenue growth, and management is optimistic about maintaining momentum due to a robust deal pipeline.
The Passenger Car vertical grew 5.7% QoQ, indicating strong execution, while the Commercial Vehicle segment grew slightly by 2.8% QoQ. The company is focusing on its Top 25 clients to enhance business opportunities and improve client engagement, with strategic revenue up 3.8% QoQ.
In services, feature development and integration services, comprising 60% of revenue, grew 2.7% QoQ. Cloud-based connected services, making up 26% of revenue, experienced a 4.2% QoQ decline, whereas Architecture and Middleware consulting saw significant growth of 20.2% QoQ.
Geographically, North America, contributing 44% of revenue, grew 2.7% QoQ. Europe, which represents 76% of revenue, saw a 0.6% QoQ decline, while Asia, accounting for 25% of revenue, experienced robust growth of 23.1% QoQ in constant currency terms.
Stock Performance:-
The shares of KPIT Technologies Ltd have seen a drastic fall by 22 percent from the last five trading sessions and in the last 6 months the share has fallen 1 percent, will the shares of the company see a bounce back in the near future.
Company profile:-
KPIT is a worldwide technology business that develops software solutions to assist mobility leapfrog into an autonomous, clean, smart, and connected future. KPIT, with over 13000
Automobelievers worldwide, specializes in embedded software, AI, and digital solutions, allowing clients to speed the deployment of next-generation mobility technology.
Written by:- Abhishek Singh
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