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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Rategain Travel

Affle 3i

Black Box

Zensar Tech.

Intellect Design

Sagility

Cyient

Tata Elxsi

KPIT Technologi.

IDream Film

Why is KPIT Technologies Ltd ?

With a fall in Net Sales of -2.1%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
INTEREST(9M) At Rs 68.34 cr has Grown at 82.39%
PAT(Q) At Rs 117.18 cr has Fallen at -31.2% (vs previous 4Q average)
ROCE(HY) Lowest at 22.96%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.82% over the previous quarter and currently hold 38.6% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -48.16% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is KPIT Technologi. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KPIT Technologi.

-48.16%

-1.21

39.87%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.58%

EBIT Growth (5y)

34.13%

EBIT to Interest (avg)

16.10

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.73

Tax Ratio

26.95%

Dividend Payout Ratio

27.51%

Pledged Shares

Institutional Holding

36.83%

ROCE (avg)

47.86%

ROE (avg)

23.96%

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

4.86

EV to EBIT

18.31

EV to EBITDA

13.54

EV to Capital Employed

5.57

EV to Sales

2.53

PEG Ratio

Dividend Yield

0.35%

ROCE (Latest)

32.02%

ROE (Latest)

19.24%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 73.26 times

-26What is not working for the Company

INTEREST(9M)

At Rs 68.34 cr has Grown at 82.39%

PAT(Latest six months)

At Rs 280.23 cr has Grown at -32.74%

ROCE(HY)

Lowest at 22.96%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 11.83 times

DEBT-EQUITY RATIO(HY)

Highest at 0.24 times

PBDIT(Q)

Lowest at Rs 271.49 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 16.21%

PBT LESS OI(Q)

Lowest at Rs 151.96 cr.

EPS(Q)

Lowest at Rs 4.30

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Here's what is working for KPIT Technologi.

Inventory Turnover Ratio- Half Yearly

Highest at 73.26 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.

Interest - Nine Monthly

At Rs 68.34 cr has Grown at 82.39%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 151.96 cr has Fallen at -28.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 211.51 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 117.18 cr has Fallen at -31.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 170.34 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 11.83 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 271.49 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 16.21%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 151.96 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 4.30

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.24 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio