KPIT Technologies Ltd (KPITTECH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coforge

Persistent Syste

Sagility

Hexaware Tech.

Mphasis

Inventurus Knowl

L&T Technology

KPIT Technologi.

Affle 3i

Tata Technolog.

Tata Elxsi

Why is KPIT Technologies Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.79%

Healthy long term growth as Net Sales has grown by an annual rate of 24.09% and Operating profit at 44.93%
Company has a low Debt to Equity ratio (avg) at 0 times

Flat results in Sep 25

ROCE(HY) Lowest at 28.66%
PBT LESS OI(Q) At Rs 206.99 cr has Fallen at -13.6% (vs previous 4Q average)
PAT(Q) At Rs 169.09 cr has Fallen at -16.2% (vs previous 4Q average)

With ROE of 23.7, it has a Fair valuation with a 10.7 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.40%, its profits have risen by 6.2% ; the PEG ratio of the company is 7.3

High Institutional Holdings at 38.21%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.00% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.40% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KPIT Technologi. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is KPIT Technologi. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KPIT Technologi.

-15.29%

-0.43

35.47%

Sensex

4.69%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.09%

EBIT Growth (5y)

44.93%

EBIT to Interest (avg)

16.75

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.74

Tax Ratio

25.64%

Dividend Payout Ratio

27.51%

Pledged Shares

Institutional Holding

38.21%

ROCE (avg)

49.11%

ROE (avg)

23.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.68

EV to EBIT

34.18

EV to EBITDA

27.27

EV to Capital Employed

12.89

EV to Sales

5.58

PEG Ratio

7.28

Dividend Yield

0.67%

ROCE (Latest)

37.70%

ROE (Latest)

23.68%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CF(Y)

Highest at Rs 1,389.53 Cr

INVENTORY TURNOVER RATIO(HY)

Highest at 70.65 times

NET SALES(Q)

Highest at Rs 1,587.71 cr

-10What is not working for the Company

ROCE(HY)

Lowest at 28.66%

PBT LESS OI(Q)

At Rs 206.99 cr has Fallen at -13.6% (vs previous 4Q average

PAT(Q)

At Rs 169.09 cr has Fallen at -16.2% (vs previous 4Q average

DPR(Y)

Lowest at 27.51%

EPS(Q)

Lowest at Rs 6.22

Loading Valuation Snapshot...

Here's what is working for KPIT Technologi.

Operating Cash Flow - Annually

Highest at Rs 1,389.53 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,587.71 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Highest at 70.65 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for KPIT Technologi.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 206.99 cr has Fallen at -13.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 239.54 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 169.09 cr has Fallen at -16.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 201.84 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 206.99 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 6.22

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 27.51%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)