Fundamental Analysis

KPIT TECHNOLOGIES LTD.

Ticker : 542651  
BUY : ₹ 588.45
Target: ₹ 665

KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. On a consolidated basis the company recorded net sales and other operating income of Rs 622.37 crore, 20.32 per cent higher than Rs 517.25 crore reported in Q3FY21. Operating profit was recorded at Rs 123.53 crore in Q3FY22, a robust rise of 37.82 per cent as compared to an operating profit of Rs 89.63 crore in Q3FY21. Q3FY22 recorded a net profit of Rs 70.65 crore in comparison with net profit of Rs 42.97 crore in Q3FY21, giving a significant rise of 64.4 per cent. The growth during Q3FY22 was in line with the management’s expectations and continues to deliver margin improvement and cash conversion relentlessly. In the last quarter of FY22, the company is confident of delivering on the higher end of its revised yearly outlook and commence the next year on a strong footing. Hence, we recommend BUY.