Shares of KPIT Technologies climbed 4 per cent in Tuesday’s trade, taking their winning run to the fourth straight session. The scrip has been rising even since the IT firm reported its September quarter results.
The stock rose 3.66 per cent to hit a high of Rs 739.05 on BSE, in an otherwise weak session for the market. With this, the scrip has climbed 13.78 per cent in four sessions. It is up 139 per cent in the last one year.
The IT firm guided for a 31-32 per cent FY23 revenue growth in constant currency (CC) terms. It pegged FY23 organic growth outlook at 23 per cent-plus against 18-21 per cent earlier.
“We believe strong revenue and margin guidance is priced-in at current valuations. We maintain our ‘Sell’ rating on the stock given expensive valuations. We value the stock on FY25E earnings, accordingly, our revised price target is Rs 553 from Rs 437 earlier. We value the stock at a PE of 27 times on FY25E earnings,” Kotak Securities said.
On the results front, KPIT Technologies clocked a 28.23 per cent rise in net profit at Rs 83.48 crore for the September quarter compared with Rs 65.10 crore in the year-ago quarter. On a sequential basis, profit fell 2.28 per cent over Rs 85.43 crore in the June quarter.
Sales for the quarter rose 26 per cent YoY to to Rs 744.83 crore from Rs 590.87 crore sales in the year-ago quarter. Sequentially, top line was up 8.61 per cent over Rs 685.72 crore in the June quarter.
Ebit margin for the quarter fell to 14.2 per cent in September quarter from 14.9 per cent in the June quarter, KPIT Technologies said in a BSE filing. The year-ago Ebit margin stood at 12.7 per cent in the year-ago quarter.
