Shares of KPIT Technologies gained 5.21% on Thursday’s early deals to reach a fresh 52-week high of ₹ 1,118.40 apiece on the National Stock Exchange (NSE). At 02:52 PM, its shares were trading at ₹ 1096.50 apiece.
KPIT Technologies provides automobile, engineering and mobility-based software solutions. It analyses data for diagnostics, maintenance and tracking of assets and related connectivity solutions and operates in Europe, the United States, Japan, China, Thailand and India.
In the past year, KPIT Technologies’ share price rose from ₹ 543.70 to the current level, giving multibagger returns of 101.67%. Therefore if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.01 lakhs today!
Analysts say that automotive manufacturers are prioritising investment in new-age technologies and KPIT is at the forefront due to its strong domain expertise. Engineering spends by OEM (Original equipment manufacturers) has climbed 10%, despite global macros.
They added that KPIT has invested heavily in the technologies to maintain its leadership position in this area and is looking well-positioned to increase its focus on electric vehicles, especially in the US and Europe.
KPIT Technologies is a mid-cap company with a market capitalization of ₹ 28,739 crores. It has a high return on equity of 25.73% and an ideal debt-to-equity ratio of 0.17. Its shares were trading at a price to earnings ratio of 76.15 which is higher than the industry P/E of 64.76, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 39.49% stake in the company followed by retail investors with 26.87%, foreign institutions with 23.42%, mutual funds with 7.44% and other domestic institutions with 2.78%.
KPIT Technologies posted revenue from operations of ₹ 1,017.37 crores for the January to March quarter of 2023 (Q4FY23), up 56.09% from ₹ 651.77 crores in the January to March quarter of the preceding year (Q4FY22). Its profit came in at ₹ 111.58 in Q4FY23, translating to an increase of 38.46% as compared to ₹ 80.59 crores in Q4FY22.
For the entire year (FY23), the company’s revenue rose 38.34% to ₹ 3,365.04 crores, as compared to ₹ 2,432.39 crores in the previous financial year (FY22). It reported a profit of ₹ 386.86 crores, up 40.04% in FY23 against ₹ 276.24 crores in FY22.
Written By Simran Bafna
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