KPIT Technologies Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹50,167 crore, a PE ratio of 75.7, a debt-to-equity ratio of 0.15, and a return on equity (ROE) of 31.2%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
Content:
- KPIT Technologies Ltd Overview
- KPIT Technologies Limited Financial Results
- KPIT Technologies Ltd Financial Analysis
- KPIT Technologies Ltd Company Metrics
- KPIT Technologies Limited Stock Performance
- KPIT Technologies Ltd Peer Comparison
- KPIT Technologies Ltd Shareholding Pattern
- KPIT Technologies Ltd History
- How To Invest In KPIT Technologies Ltd Share?
- KPIT Technologies Limited Fundamental Analysis – FAQs
KPIT Technologies Ltd Overview
KPIT Technologies Ltd is a global leader in automotive software, focusing on embedded systems, AI, and digital solutions. It partners with major automakers to drive innovations in software-defined vehicles, aiming for a cleaner, smarter, and safer mobility future.
The company has a market capitalization of ₹50,167 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 5.11% below its 52-week high and 76.3% above its 52-week low.
KPIT Technologies Limited Financial Results
KPIT Technologies Ltd’s financial results for FY24 show significant growth, with sales reaching ₹4,872 crores compared to ₹2,432 crores in FY22. In FY23, Net profit rose to ₹598.51 crores from ₹386.86 crore in FY22, reflecting a strong performance over the period.
- Revenue Trend: KPIT’s revenue surged from ₹2,432 crores in FY22 to ₹3,365 crores in FY23, and further to ₹4,872 crores in FY24. This consistent growth highlights a robust and expanding market presence.
- Equity and Liabilities: Equity capital stood at ₹271 Crores in FY24, with reserves increasing to ₹1,331 Crores. Total liabilities increased to ₹2,153 Crores from ₹1,821 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit rose from ₹438.55 crores in FY22 to ₹632.89 crores in FY23, reaching ₹991.33 crores in FY24. The Operating Profit Margin (OPM) improved from 18% in FY22 to 19% in FY23 and 20% in FY24.
- Earnings Per Share (EPS): EPS for KPIT grew from ₹10.17 in FY22 to ₹14.1 in FY23, and then to ₹21.95 in FY24. This steady rise underscores the company’s improving profitability and shareholder returns.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) increased significantly to 31.2% in FY24 from 20% in FY23, demonstrating a substantial improvement in returns on shareholders’ equity and enhanced profitability over the period.
- Financial Position: KPIT’s EBITDA grew from ₹483.36 crores in FY22 to ₹673.08 crores in FY23, reaching ₹1,052 crores in FY24. The company’s strong financial management and rising revenue indicate a solid financial foundation.
KPIT Technologies Ltd Financial Analysis
| FY24 | FY23 | FY22 | |
| Sales | 4,872 | 3,365 | 2,432 |
| Expenses | 3,880 | 2,732 | 1,994 |
| Operating Profit | 991.33 | 632.89 | 438.55 |
| OPM % | 20 | 19 | 18 |
| Other Income | 60.27 | 40.19 | 44.81 |
| EBITDA | 1,052 | 673.08 | 483.36 |
| Interest | 54.83 | 32.31 | 19.4 |
| Depreciation | 195.79 | 146.38 | 119.61 |
| Profit Before Tax | 800.98 | 494.39 | 344.35 |
| Tax % | 25.21 | 22.23 | 19.83 |
| Net Profit | 598.51 | 386.86 | 276.24 |
| EPS | 21.95 | 14.1 | 10.17 |
| Dividend Payout % | 30.52 | 29.08 | 30.48 |
All values in ₹ Crores.
KPIT Technologies Ltd Company Metrics
KPIT Technologies Ltd has a market cap of ₹50,167 crores with a current price of ₹1,830. The company shows strong financials, including a high ROE of 31.2% and consistent growth in asset turnover.
- Market Cap: With a market capitalization of ₹50,167 crores, KPIT Technologies is a significant player in the technology sector, reflecting strong investor confidence and a substantial market presence.
- Book Value: KPIT’s book value stands at ₹78.3, indicating the company’s solid asset base relative to its liabilities.
- Face Value: The face value of shares of KPIT Technologies’ is ₹10 per share.
- Turnover: KPIT’s asset turnover ratio is 1.31, signifying efficient use of its assets to generate revenue. This indicates that for every rupee in assets, KPIT generates ₹1.31 in sales.
- PE Ratio: KPIT’s Price-to-earnings (P/E) ratio is 75.7, suggesting that the market expects high future growth. This high P/E reflects investor optimism and confidence in the company’s future earnings potential.
- Debt: KPIT’s debt stands at ₹329 crores with a debt-to-equity ratio of 0.15, indicating a low level of financial leverage. This low debt level reduces financial risk and increases the company’s financial stability.
- ROE: Return on Equity (ROE) for KPIT is 31.2%, demonstrating strong profitability relative to shareholders’ equity. This high ROE indicates efficient use of equity capital to generate profits.
- EBITDA Margin: KPIT’s EBITDA margin is 20.6%, reflecting healthy operational profitability.
- Dividend Yield: KPIT Technologies offers a dividend yield of 0.37%, providing a modest return to shareholders in the form of dividends.
KPIT Technologies Limited Stock Performance
KPIT Technologies Ltd delivered impressive returns on investment, with 82% over five years, 77% over three years, and 62% in the last year, highlighting consistent and strong financial performance across multiple periods.
| Period | Return on Investment (%) |
| 5 Years | 82% |
| 3 Years | 77% |
| 1 Year | 62% |
Examples:
Over five years, A invested ₹100,000, and gained ₹82,000 profit. This results in a total amount of ₹1,82,000.
In three years, A invested ₹100,000, earning ₹77,000 profit. This results in a total amount of ₹1,77,000.
In one year, A invested ₹100,000, and received ₹62,000 profit. This results in a total amount of ₹1,62,000.
KPIT Technologies Ltd Peer Comparison
KPIT Technologies Ltd, with a market cap of ₹50,167 Crores, shows strong performance compared to competitors like Oracle Financial Services, PB Fintech, and Tata Elxsi. Among them, Oracle Financial Services leads with a market cap of ₹96,540 Crores.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Oracle Fin.Serv. | 11124.45 | 96540.45 | 4.19 | 46.28 | 182.08 |
| 2 | PB Fintech. | 1680.85 | 76587.95 | 44.66 | 33.03 | 134.41 |
| 3 | KPIT Technology. | 1830.15 | 50166.95 | 1.53 | 21.65 | 61.61 |
| 4 | Tata Elxsi | 6926.8 | 43164.43 | 2.44 | -6.61 | -1.39 |
| 5 | Tata Technology. | 1025.45 | 41566.18 | 4.7 | -2.32 | -14.42 |
| 6 | Coforge | 6087.45 | 40623.75 | 3.62 | 20.2 | 22.76 |
| 7 | Affle India | 1662 | 23316.88 | 1.69 | 40.03 | 53.56 |
KPIT Technologies Ltd Shareholding Pattern
The shareholding pattern of KPIT Technologies Ltd shows data for three quarters. As of June 2024, promoters hold 39.47%, consistent across the last three quarters. FIIs decreased from 26.48% in December 2023 to 22.23% in June 2024, while DIIs increased to 16.64%.
| Jun 2024 | Mar 2024 | Dec 2023 | |
| Promoters | 39.47 | 39.47 | 39.47 |
| FII | 22.23 | 23.98 | 26.48 |
| DII | 16.64 | 14 | 11.6 |
| Retail & others | 21.65 | 22.56 | 22.43 |
All values in %
KPIT Technologies Ltd History
KPIT Technologies Ltd, founded in the late 1980s by chartered accountants Ravi Pandit and Kishor Patil, began as an offshoot of Kirtane and Pandit Chartered Accountants in Pune. Initially incubated within a CA firm, KPIT transitioned into a technology company, focusing on innovation and global ambitions in the tech sector.
From 1999 to 2013, KPIT Infosystems built a strong foundation in verticals, with significant milestones including a successful IPO and strategic collaborations, expanding its client base and competencies. In 2013, KPIT rebranded as KPIT Technologies and advanced into mobility software products, earning global recognition for innovation and sustainability, and expanding its global presence.
Post-2018, KPIT, after a merger-demerger, refocused on automotive software, expanding globally and forming strategic partnerships, establishing itself as a leader in the software-defined vehicle sector.
How To Invest In KPIT Technologies Ltd Share?
Investing in KPIT Technologies shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for KPIT Technologies shares and place your buy order.
KPIT Technologies Limited Fundamental Analysis – FAQs
KPIT Technologies Ltd’s fundamental analysis reveals a market cap of ₹50,167 crore, a PE ratio of 75.7, a debt-to-equity ratio of 0.15, and an ROE of 31.2%, reflecting strong financial health, effective debt management, and robust returns.
The market capitalization of KPIT Technologies Ltd is ₹50,167 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
KPIT Technologies Limited is a global leader in automotive software and mobility solutions, specializing in embedded software, AI, and digital transformation. It partners with automotive giants to advance software-defined vehicle technologies and future mobility.
KPIT Technologies Ltd is publicly traded, with ownership distributed among institutional and retail investors. Major stakeholders include global investment firms and individual shareholders. The company’s largest shareholders are often major institutional investors and mutual funds.
The main shareholders of KPIT Technologies Ltd typically include institutional investors like mutual funds and insurance companies, along with prominent investment firms such as ICICI Bank, LIC, and various global equity funds.
KPIT Technologies operates in the technology and automotive industry, specializing in software development and integration. It focuses on advanced mobility solutions, including embedded software, AI, and digital transformation for the automotive and mobility sectors.
Investors can buy KPIT Technologies shares through stock exchanges by opening a trading account with a broker or via online trading platforms, participating in market transactions during trading hours.
Determining if KPIT Technologies is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 75.7, KPIT Technologies might be fairly valued, reflecting market expectations and moderate growth potential.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
