KPIT Technologies seems to be performing exceptionally well in terms of its stock price and financials. The stock has witnessed a significant increase of over 100% in just a year and over 220% in the last two years. This indicates that the company has delivered strong returns for its shareholders.
In terms of financial performance, KPIT Technologies reported a 56.8% year-on-year rise in its consolidated net profit to Rs 133.9 crore. This is a substantial increase from the profit of Rs 85.4 crore in the same period last year. Additionally, the company’s sequential consolidated net profit increased by 20% from Rs 111.6 crore in the previous quarter.
The revenue growth in constant currency terms is also impressive, with a year-on-year increase of 51.7%. This suggests that the company has been able to generate higher revenues, potentially due to increased demand for its products or services.
According to JP Morgan’s recent report, the slowdown in Engineering R&D spending observed over the past six months is believed to be a structural change rather than a cyclical one. This means that it is not just a temporary fluctuation but a long-term shift in the trend.
Additionally, JP Morgan has set a target price of Rs 540 for KPIT Technologies, indicating the expected value of the company’s shares in the future. This target price is based on their analysis and assessment of various factors related to the company.
According to Osho Krishan, Sr. Analyst – Technical & Derivative Research at Angel One, KPIT Tech has resumed its uptrend after a brief consolidation period. The stock has broken out above 1100 on the daily charts and is currently facing a hurdle around its previous all-time high. Despite this, Krishan believes that the technical undertone of the stock remains strong and expects it to move higher in the near term.
In terms of levels, the stock has resistance around its all-time high of 1160-1180. On the downside, it is likely to find support in the 1110-1100 zone in the short term, with a strong support in the 1000-950 zone.
