Shares of this mid-cap IT stock saw some bullish movements in Thursday’s trading session after the company made an additional investment in its wholly-owned step-down subsidiary. In the past six months, the company’s stock has gained over 25 percent.
With a market capitalization of Rs 31,175.63 crores, the stocks of KPIT Technologies Limited opened their trading session on Thursday at Rs 1,139.95 and currently trade at Rs 1,137.20. The company’s scrip witnessed an intra-day high of Rs 1,149.80 exhibiting a gain of around 2 percent compared to the previous closing levels of Rs 1,128.30 apiece.
Such movements in the stock prices were observed after the company, in a regulatory filing with the BSE dated 27th September 2023, intimated that it has made an additional investment of 5 million Euros in ‘KPIT Technologies GmbH’, a wholly-owned step-down subsidiary of KPIT Technologies.
The company made the above-mentioned investment by way of subscribing to nearly 2.59 lakh shares at a price of € 19.32 per share. KPIT Technologies GmbH is involved in Engineering services mainly in the ‘Automotive’ sector.
During the recent financial years, the company has successfully increased its operating revenues from Rs 2,432.39 crores during Q4FY22-23 to Rs 3,365.04 crores during Q1FY23-24. Moreover, the company’s net profits rose from Rs 276.24 crores to Rs 386.86 crores keeping the timeframe the same.
In addition to the above, the company’s profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) took an upward shift with the former increasing from 22.26 percent during FY21-22 to 26.55 percent during FY22-23, and, the latter moving up from 28.86 percent to 35.12 percent.
As per the quarter ended June 2023, the company’s Promoters hold a 39.47 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 25.91 percent in the company.
KPIT Technologies Limited is a global technology company specializing in providing information technology (IT) consulting as well as product engineering solutions to various sectors such as Energy, Automotive, etc. Geographically, the company derives a majority of its revenue from the American region.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
