KPITTECH - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a deep dive into KPIT Technologies (KPITTECH) — a high-growth automotive software innovator currently in a technical correction phase 🚗💻📉

📈 Core Financials Snapshot

Profitability

ROE (33.2%) and ROCE (40.9%) — stellar returns, signaling strong capital deployment.

EPS: ₹30.6 — impressive earnings, supporting premium valuation.

Quarterly Performance

PAT surged from ₹187 Cr to ₹245 Cr (+49.4%) — strong sequential growth.

Debt-to-equity: 0.12 — extremely low leverage, ideal for tech firms.

Dividend Yield: 0.70% — modest but consistent, showing shareholder focus.

📊 Valuation Metrics

Metric Value Interpretation

P/E Ratio 39.8 Premium valuation vs. industry PE of 29.1

P/B Ratio ~11.5 High — reflects market confidence in intangibles

PEG Ratio 0.90 Reasonable — growth justifies valuation

📌 KPITTECH trades at a growth premium, but PEG suggests it’s not overpriced relative to earnings momentum.

🚀 Business Model & Competitive Edge

Specializes in embedded software for automotive and mobility, with focus on Software-Defined Vehicles (SDVs).

Strategic partnerships with OEMs like Mercedes-Benz and acquisitions (e.g., Caresoft Global) enhance capabilities

1

.

Strong global presence across Americas, Europe, and Asia, with scalable delivery model.

Recent deal wins worth $241M and robust pipeline indicate sustained revenue visibility

2

.

📉 Technical & Entry Zone Insight

Current Price: ₹1,218, below DMA-50 (₹1,284) and DMA-200 (₹1,353) — bearish trend.

RSI: 37.8 — approaching oversold zone.

MACD: -21.2 — momentum still weak.

🎯 Suggested Entry Zone: ₹1,050–₹1,200 🧱 Support: ₹1,021 (52-week low) 🔼 Resistance: ₹1,285–₹1,350

Accumulation near ₹1,100 could offer a favorable risk-reward setup as sentiment stabilizes.

⏳ Long-Term Holding Outlook

KPIT is a high-conviction tech play in the auto space — ideal for 3–5 year horizon.

Watch for margin consistency, deal conversion, and global EV adoption trends.

Want to compare it with peers like Tata Elxsi, Persistent Systems, or Coforge to sharpen your portfolio strategy? I’ve got the data ready to roll 🧠📊.

1

stockanalysis.com

2

CNBCTV18

Edit in a page