Multibagger IT stock trading at discount of more than 30% to add to your watchlist

Shares of a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart and connected future slumped nearly 0.3 percent on BSE to Rs. 1,329.95, during Friday’s morning trading session. The stock is currently trading at a discount of over 32 percent. 

Stock Performance 

With a market capitalisation of Rs. 35,832 crores, at 09:26 a.m., the shares of KPIT Technologies Limited were trading in the red at Rs. 1,306, down by nearly 1.5 percent, as against its previous closing price of Rs. 1,326.4. 

The stock hit its 52-week high at Rs. 1,928.75 on 12th July 2024, and compared to its current trading price of Rs. 1,306, the stock is trading at a discount of nearly 32 percent. The stock has delivered negative returns of around 12 percent over a one-year period, as well as nearly 9 percent in the last one month. 

Management Outlook for FY25

• Revenue and EBITDA Growth: The company expects revenue growth in the range of 18 percent to 22 percent range, with an improved EBITDA margin outlook, now expected to exceed 21 percent, up from the earlier forecast of over 20.5 percent. 

• Delivery and Operations: Management plans to leverage a robust competency framework and maintain relentless execution. It will focus on maximising Global Delivery capabilities and scaling operations through automation and improved productivity. 

• Practice & Technology: The company will make additional technology investments in related areas, emphasise cross-practice offerings, drive AI adoption, strengthen its focus on Asia, and foster strategic partnerships and collaborations. 

• Profitability: KPIT aims to improve realization through productivity gains, enhance the people pyramid, and optimise costs using a global delivery model. 

Also read: BlueChip stocks to buy now for an upside potential of up to 37%; Are these in your portfolio?

New Engagements during Q3 FY25

During Q3 FY25, KPIT Technologies secured strong wins with a total contract value (TCV) of $236 million in new engagements. The company was selected by a leading European car manufacturer for a strategic engagement in the autonomous driving domain. Additionally, KPIT formed strategic partnerships in the electric powertrain and architecture domains with the same European car manufacturer. 

The company also secured crucial engagements in vehicle diagnostics and mechatronics domains with a leading American commercial vehicle OEM. Further, KPIT established strategic engagements in the connected, autonomous, and body electronics domains with a major Asian car OEM. 

Furthermore, the company entered key engagements in the autonomous and connected domains, along with a joint go-to-market initiative with a leading American semiconductor company. 

Financials

KPIT Technologies reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 17.6 percent, rising from Rs. 1,257 crores in Q3 FY24 to Rs. 1,478 crores in Q3 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 157 crores to Rs. 187 crores, representing a growth of about 19 percent YoY. 

Further, EBITDA for Q3 FY25 increased by about 21 percent YoY to Rs. 312.2 crores, up from Rs. 258.5 crores in Q3 FY24. The EBITDA margins grew to 21.1 percent, from 20.6 percent, over the same period, mainly due to productivity improvement, revenue mix and fixed cost leverage. 

About the company

KPIT Technologies Limited is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 12,000+ automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables clients to accelerate the implementation of next-generation mobility technologies. 

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Multibagger IT stock trading at discount of more than 30% to add to your watchlist appeared first on Trade Brains.