⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KPITTECH - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 4.3
📊 Financial Overview
- Profitability: PAT surged from ₹132 Cr to ₹229 Cr QoQ, marking a 204% quarterly profit variation.
- Return Metrics: ROE at 27.1% and ROCE at 34.4% are excellent, reflecting strong capital efficiency.
- Valuation: P/E of 50.4 is significantly above industry average (29.4), indicating premium valuation.
- P/B Ratio: With a book value of ₹71.2 and price of ₹1,167, P/B is ~16.4, suggesting a steep premium.
- PEG Ratio: 1.90 signals moderate overvaluation relative to earnings growth.
- Debt Profile: Debt-to-equity ratio of 0.07 shows excellent financial discipline and low leverage.
- Momentum: RSI at 46.8 and MACD at -6.74 suggest neutral to slightly bearish sentiment.
🏢 Business Model & Competitive Edge
- KPIT Technologies specializes in embedded software and digital solutions for the automotive and mobility sectors.
- Strong focus on electric vehicles, autonomous driving, and software-defined vehicles positions it as a future-ready tech player.
- Global client base and strategic partnerships with OEMs and Tier-1 suppliers enhance scalability and innovation.
💡 Entry Zone Recommendation
- Current price is below both DMA 50 (₹1,200) and DMA 200 (₹1,283), indicating a short-term downtrend.
- Suggested Entry Zone: ₹1,120–₹1,150 for accumulation.
- Long-term holding is favorable given strong fundamentals and exposure to high-growth automotive tech themes.
✅ Positive
- Exceptional ROE and ROCE indicate superior operational efficiency.
- Low debt-to-equity ratio supports financial resilience.
- DII holdings increased by 1.53%, showing strong domestic institutional confidence.
⚠️ Limitation
- High P/E and P/B ratios suggest valuation concerns.
- PEG ratio above 1.5 indicates moderate overvaluation relative to growth.
- FII holdings declined by 1.18%, reflecting cautious foreign sentiment.
📉 Company Negative News
- Stock has corrected ~25% from its 52-week high of ₹1,563.
- MACD and RSI indicate weak short-term momentum.
📈 Company Positive News
- Massive QoQ PAT growth and strong EPS of ₹23.2.
- Strategic wins in EV and autonomous software segments gaining traction.
🏭 Industry
- Automotive tech and embedded software are rapidly growing segments driven by EV and ADAS adoption.
- Industry P/E of 29.4 supports moderate valuation for innovation-led players.
🧾 Conclusion
- KPIT Technologies is a high-growth automotive tech player with strong fundamentals and strategic positioning.
- Entry near ₹1,120–₹1,150 offers a favorable long-term opportunity.
- Monitor valuation metrics and institutional flows for sustained performance.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks