Anand Rathi has buy call on with a target price of Rs 400. The current market price of KPIT Technologies Ltd. is Rs 360.55. Time period given by analyst is one year when KPIT Technologies Ltd. price can reach defined target.

KPIT Technologies Ltd., incorporated in the year 2018, is a Small Cap company (having a market cap of Rs 9819.83 Crore) operating in IT Software sector.

KPIT Technologies Ltd. key Products/Revenue Segments include Software Services and Sale of Products for the year ending 31-Mar-2021.

Financials

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 601.95 Crore, up 3.87 % from last quarter Total Income of Rs 579.52 Crore and up 23.36 % from last year same quarter Total Income of Rs 487.98 Crore. Company reported net profit after tax of Rs 65.10 Crore in latest quarter.

Investment Rationale
KPIT Q2’s was strong: revenue up 4.1% q/q, 23% y/y, to $80m, and a large deal of $52m TCV. Growth was across all key regions (the US, Europe, Japan) but in service lines, Powertrain (13% q/q, 31% y/y), Diagnostics and Autosar led the way. The top-25 accounts continue to grow (20% y/y). The better-than-expected 17.6% EBITDA margin, despite Q2 wage hikes, is likely to be high (guidance for FY22: ~17.5%). The brokerage raises FY23e PAT 5% and target to Rs400 (34x FY23e PE).

Promoter/FII Holdings
Promoters held 40.14 per cent stake in the company as of 30-Sep-2021, while FIIs owned 20.9 per cent, DIIs 12.58 per cent.