KPITTECH - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📈 KPIT Technologies shows strong fundamentals and earnings momentum, making it a solid swing trade candidate with a favorable risk-reward setup.

🎯 Optimal Entry Price: ₹1,140–₹1,155

🚪 Exit Target (if already holding): ₹1,200–₹1,230

🔍 Positive

• 📈 ROCE of 34.4% and ROE of 27.1% reflect excellent capital efficiency and profitability.
• 📈 Quarterly PAT grew from ₹132 Cr to ₹229 Cr, a 204% increase, signaling strong earnings momentum.
• 📈 DII holding increased by 1.53%, showing growing domestic institutional confidence.
• 📈 Debt-to-equity ratio of 0.07 indicates a healthy balance sheet.
• 📈 EPS of ₹23.2 supports valuation strength and earnings visibility.

⚠️ Limitation

• 📉 P/E of 49.8 is significantly above industry average (29.7), suggesting premium valuation.
• 📉 MACD at -8.16 indicates lingering bearish momentum.
• 📉 RSI at 42.8 is neutral, lacking strong directional bias.
• 📉 Price below both 50 DMA and 200 DMA (₹1,195 and ₹1,279), showing technical resistance.
• 📉 FII holding declined by 1.18%, reflecting cautious foreign sentiment.

📉 Company Negative News

• 📉 FII outflows and price correction from ₹1,563 to ₹1,156 suggest profit booking and valuation concerns.

📈 Company Positive News

• 📈 PAT surged 204% QoQ, driven by strong demand in automotive software and digital mobility solutions.
• 📈 DII inflows and robust EPS growth support bullish sentiment.
• 📈 KPIT continues to expand its EV and autonomous vehicle software portfolio, enhancing long-term visibility.

🚗 Industry

• 🚗 Automotive tech and engineering services benefit from global EV adoption and digital transformation.
• 📉 Risks include client concentration, currency fluctuations, and global macro uncertainty.

✅ Conclusion

• 📈 KPIT Technologies is a strong swing trade candidate with robust earnings and sector tailwinds.
• 🎯 Entry near ₹1,140–₹1,155 with exit around ₹1,200–₹1,230 is recommended for short-term traders.
• 📊 Long-term investors should monitor valuation compression and global auto-tech demand for sustained upside.

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