Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 07 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 542651 | NSE: KPITTECH

KPIT Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 24, 2024, 11:08 am

Market Cap 39,935 Cr.
Current Price 1,457
High / Low1,929/1,091
Stock P/E55.0
Book Value 91.2
Dividend Yield0.46 %
ROCE38.4 %
ROE31.2 %
Face Value 10.0
PEG Ratio1.85

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for KPIT Technologies Ltd

Competitors of KPIT Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.34 Cr. 89.399.0/85.0 2880.00 %%% 10.0
IB Infotech Enterprises Ltd 24.8 Cr. 194245/96.432.7 16.80.52 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.26 Cr. 1.351.35/0.58156 1.860.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 60.7 Cr. 17.727.0/16.2184 11.20.00 %%% 10.0
First Fintec Ltd 9.54 Cr. 9.1710.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,416.33 Cr698.06143.76121.260.65%18.15%18.84%6.97

All Competitor Stocks of KPIT Technologies Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5175405675916226526867459171,0171,0981,1991,257
Expenses434453469487508530553607747835884959998
Operating Profit838898104115121133138170182214240259
OPM %16%16%17%18%18%19%19%19%19%18%19%20%21%
Other Income961211914161118722919
Interest44444767811141416
Depreciation34312929313131334042454850
Profit before tax545978828897112109139136177188212
Tax %20%11%22%21%20%17%22%23%25%18%24%25%26%
Net Profit4353606570818884104112134141157
EPS in Rs1.521.912.202.372.552.883.123.053.674.074.895.145.67

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales06412,1562,0362,4323,3654,571
Expenses05501,8661,7291,9812,7323,676
Operating Profit-092290307451633895
OPM %14%13%15%19%19%20%
Other Income011921324356
Interest072017193254
Depreciation019108133120146185
Profit before tax-067181178345497712
Tax %0%18%18%17%20%22%
Net Profit-055148147276387544
EPS in Rs-27.001.985.385.3310.0013.9019.77
Dividend Payout %0%37%18%28%31%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)169.09%-0.68%87.76%40.22%
Change in YoY Net Profit Growth (%)0.00%-169.77%88.43%-47.54%

KPIT Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2019-2020 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:50%
3 Years:34%
TTM:28%
Compounded Profit Growth
10 Years:%
5 Years:49%
3 Years:61%
TTM:49%
Stock Price CAGR
10 Years:%
5 Years:75%
3 Years:61%
1 Year:12%
Return on Equity
10 Years:%
5 Years:23%
3 Years:27%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0268269269270270271
Reserves-06917809381,0401,3811,875
Borrowings0132204230227287329
Other Liabilities05823845317991,4021,624
Total Liabilities01,6741,6371,9682,3363,3414,098
Fixed Assets04205265776411,6841,915
CWIP0151203358
Investments05091271296494
Other Assets01,2041,0961,2511,5661,5592,030
Total Assets01,6741,6371,9682,3363,3414,098

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -01513896284754621,002
Cash from Investing Activity 016-136-503-292-167-561
Cash from Financing Activity 034-177-115-127-183-240
Net Cash Flow0201751056112201

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.00-40.0086.0077.00224.00346.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days3377655566456
Inventory Days
Days Payable
Cash Conversion Cycle3377655566456
Working Capital Days21637-4-23-17-18
ROCE %20%18%14%25%30%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.14%40.14%40.14%40.11%40.11%40.11%40.10%40.10%39.49%39.47%39.47%39.47%
FIIs20.92%19.82%20.90%20.38%17.10%15.99%16.89%20.30%23.42%25.91%25.69%26.48%
DIIs15.44%14.15%12.58%13.27%11.21%10.74%13.52%12.69%12.30%11.78%12.25%11.60%
Public21.64%24.06%24.72%24.68%30.08%31.69%28.08%25.44%23.41%21.55%21.46%21.33%
Others1.86%1.82%1.65%1.56%1.51%1.48%1.38%1.46%1.39%1.29%1.14%1.10%
No. of Shareholders75,5671,10,6842,05,5292,65,0085,14,2595,86,1975,63,2815,13,9714,76,8904,71,8964,96,0515,08,158

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Technology Fund1,197,8251.52185.7618,1912024-10-256484.71%
UTI Small Cap Fund435,0001.8167.4618,1912024-10-252291.29%
L&T Large and Midcap Fund - Regular Plan523,4002.2937.1218,1912024-10-252777.25%
ICICI Prudential Nifty Midcap 150 Index Fund19,1630.922.9718,1912024-10-255.34%
SBI Nifty Midcap 150 Index Fund18,1910.922.8218,1912024-10-250%
ICICI Prudential Nifty Midcap 150 ETF16,9720.922.6318,1912024-10-25-6.7%
Kotak Nifty Alpha 50 ETF13,1072.342.0318,1912024-10-25-27.95%
L&T Conservative Hybrid Fund - Regular Plan5,0000.870.3518,1912024-10-25-72.51%
ICICI Prudential S&P BSE 500 ETF1,8660.160.2918,1912024-10-25-89.74%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)21.9514.1010.175.435.46
Diluted EPS (Rs.)21.7713.9510.055.405.44
Cash EPS (Rs.)29.3119.6414.6510.429.48
Book Value[Excl.RevalReserv]/Share (Rs.)79.7561.5249.0844.9639.07
Book Value[Incl.RevalReserv]/Share (Rs.)79.7561.5249.0844.9639.07
Revenue From Operations / Share (Rs.)179.62124.4790.0875.6780.19
PBDIT / Share (Rs.)38.7724.9017.9012.0011.83
PBIT / Share (Rs.)31.5519.4813.477.057.81
PBT / Share (Rs.)29.5318.2912.756.606.72
Net Profit / Share (Rs.)22.0914.2210.225.475.46
NP After MI And SOA / Share (Rs.)21.9214.0910.165.435.45
PBDIT Margin (%)21.5820.0019.8715.8614.74
PBIT Margin (%)17.5615.6514.959.319.73
PBT Margin (%)16.4414.6914.158.728.37
Net Profit Margin (%)12.2911.4211.347.226.80
NP After MI And SOA Margin (%)12.2011.3211.277.176.79
Return on Networth / Equity (%)27.7023.0620.9412.1014.00
Return on Capital Employeed (%)32.2223.5922.3313.1717.79
Return On Assets (%)14.2611.2011.737.428.96
Total Debt / Equity (X)0.020.020.000.000.01
Asset Turnover Ratio (%)1.290.720.630.540.63
Current Ratio (X)1.331.292.142.462.23
Quick Ratio (X)1.271.242.142.462.20
Inventory Turnover Ratio (X)0.960.000.000.010.01
Dividend Payout Ratio (NP) (%)0.0023.4027.030.0032.07
Dividend Payout Ratio (CP) (%)0.0016.9018.820.0018.46
Earning Retention Ratio (%)0.0076.6072.970.0067.93
Cash Earning Retention Ratio (%)0.0083.1081.180.0081.54
Interest Coverage Ratio (X)19.1820.8324.9218.7216.04
Interest Coverage Ratio (Post Tax) (X)11.9312.9015.239.238.89
Enterprise Value (Cr.)39600.9424518.8415352.004066.56592.61
EV / Net Operating Revenue (X)8.137.296.312.000.27
EV / EBITDA (X)37.6636.4331.7612.591.86
MarketCap / Net Operating Revenue (X)8.277.436.672.340.44
Retention Ratios (%)0.0076.5972.960.0067.92
Price / BV (X)18.7815.1412.393.950.90
Price / Net Operating Revenue (X)8.277.436.672.340.44
EarningsYield0.010.010.010.030.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KPIT Technologies Ltd as of November 7, 2024 is: 1,572.19

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 7, 2024, KPIT Technologies Ltd is Undervalued by 7.91% compared to the current share price ₹1,457.00

Intrinsic Value of KPIT Technologies Ltd as of November 7, 2024 is: 2,039.62

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 7, 2024, KPIT Technologies Ltd is Undervalued by 39.99% compared to the current share price ₹1,457.00

Last 5 Year EPS CAGR: 29.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.71%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.29, which is a positive sign.
  3. The company has higher reserves (957.86 cr) compared to borrowings (201.29 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (93.43 cr) and profit (282.86 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 92.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in KPIT Technologies Ltd:
    1. Net Profit Margin: 12.29%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 32.22% (Industry Average ROCE: 18.15%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.7% (Industry Average ROE: 18.84%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.93
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.27
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 55 (Industry average Stock P/E: 143.76)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

KPIT Technologies Ltd. is a Public Limited Listed company incorporated on 08/01/2018 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74999PN2018PLC174192 and registration number is 174192. Currently Company is involved in the business activities of Architecture and engineering activities; technical testing and analysis. Company’s Total Operating Revenue is Rs. 1180.99 Cr. and Equity Capital is Rs. 270.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwarePlot 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Pune Maharashtra 411057grievances@kpit.com
http://www.kpit.com
Management
NamePosition Held
Mr. S B Ravi PanditChairman
Mr. Kishor PatilManaging Director & CEO
Mr. Sachin TikekarJt. Managing Director & President
Mr. Anup SableWhole Time Director
Mr. Chinmay PanditWhole Time Director
Mr. Anant TalaulicarIndependent Director
Mr. B V R SubbuIndependent Director
Prof. Alberto Sangiovanni VincentelliIndependent Director
Ms. Bhavna DoshiIndependent Director
Prof. Rajiv LalIndependent Director
Mr. Srinath BatniIndependent Director

FAQ

What is the latest fair value of KPIT Technologies Ltd?

The latest fair value of KPIT Technologies Ltd is ₹1572.19.

What is the Market Cap of KPIT Technologies Ltd?

The Market Cap of KPIT Technologies Ltd is 39,935 Cr..

What is the current Stock Price of KPIT Technologies Ltd as on 06 November 2024?

The current stock price of KPIT Technologies Ltd as on 06 November 2024 is 1,457.

What is the High / Low of KPIT Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of KPIT Technologies Ltd stocks is 1,929/1,091.

What is the Stock P/E of KPIT Technologies Ltd?

The Stock P/E of KPIT Technologies Ltd is 55.0.

What is the Book Value of KPIT Technologies Ltd?

The Book Value of KPIT Technologies Ltd is 91.2.

What is the Dividend Yield of KPIT Technologies Ltd?

The Dividend Yield of KPIT Technologies Ltd is 0.46 %.

What is the ROCE of KPIT Technologies Ltd?

The ROCE of KPIT Technologies Ltd is 38.4 %.

What is the ROE of KPIT Technologies Ltd?

The ROE of KPIT Technologies Ltd is 31.2 %.

What is the Face Value of KPIT Technologies Ltd?

The Face Value of KPIT Technologies Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in KPIT Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE