Global technology company KPIT offers software solutions. With more than 10,000 Automobelievers worldwide and expertise in digital solutions, artificial intelligence, and embedded software, KPIT helps clients deploy next-generation mobility technologies more quickly. having development centers in Thailand, India, Japan, China, Europe, and the United States.
The share price of KPIT technology closed up 4.6 percent after reaching its 52-week high at Rs 1,549 compared to its previous close of Rs 1479.95.
As of Friday, The company stock has an RSI of 82, indicating that the stock is in the overbought zone.
From year to date, the stock has delivered a multi-bagger return of 120 percent. KPIT shares have increased by 36 percent in the last month from a price of Rs 1,128 per share on October 27th to the current price level of 1,534.
Here are the reasons for the gain in stock price
● According to the company’s exchange filing net revenue of the company rose 61 percent year on year from Rs 744.8 crores in Q2FY23 to Rs 1199.1 crores in Q2FY24. Also, their net profit rose 69 percent year on year from Rs 83.5 crores Q2FY23 to Rs 141.4 crores Q2FY24.
● In a recent quarter, the KPIT board approved to acquisition of a 13 percent stake in N-Dream AG, a Cloud-based Game Aggregation Platform company based in Switzerland for a euro of 3 million. In addition to this, KPIT has a plan to increase shareholding over a period of time.
● In the September quarter of FY23-24, the company maintained a resilient 20% EBITDA margin despite a 250 bps impact from wage hikes. Growth across various practices contributed to a 16.8% increase in net profit. The quarter concluded with a robust net cash position of ₹5.12 billion and 47-day Days of Sales Outstanding (DSO).
● In September company’s order book for the quarter was $156 million, Strategic accounts, passenger car vertical, electric powertrain, autonomous driving, and digitally linked solutions practice dominated in deal wins.
● Further, the Company formed alliances and partnerships with top automakers in connected vehicle engineering, autonomous driving technology, and electric
powertrains. For the development of projects in autonomous driving, connected domains, and electric powertrains.
● The board of directors of the company expressed satisfaction with the company’s success and increased its sales and EBITDA margin forecast for FY24. The corporation remains cautious about potential macroeconomic consequences but is confident in meeting its stated medium-term strategic objectives.
Written by Sriram KV
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