Shares of KPIT Technologies rose sharply in Friday’s trade to hit their one-year high level. The stock jumped 7.78 per cent to hit a day high — also its 52-week high — of Rs 878.80 against a previous close of Rs 815.35. The stock has gained nearly 25 per cent so far this year. Around 2.62 lakh shares changed hands today on BSE, which was nearly three times compared to KPIT Tech’s two-week average volume of 89,000 shares. Turnover on the counter stood at Rs 22.65 crore, commanding a market capitalisation (m-cap) of Rs 23,845.03 crore.
Support on the counter could be seen at the Rs 829 level, an analyst said, while another suggested that one can avoid fresh buying for now.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “For 3 months, KPIT Technologies has given a whopping return of 41 per cent. But one needs to look that it is approaching its resistance levels of Rs 875-880 where profit booking could be seen. Even DMI (Directional Movement Index) is not showing any clear sign, so one needs to avoid fresh buying at current levels. If already bought, then keep booking profits in the zone of Rs 865-880.”
AR Ramachandran from Tips2trades said, “The counter has strong resistance at Rs 876 on the daily charts. A close above this resistance could lead to a target of Rs 941 in the near term. Strong support will be at Rs 829.”
The stock traded higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 69.03. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 76.50.
The IT firm has an average target price of Rs 794, Trendlyne data showed, suggesting a potential downside of 8.59 per cent. The scrip has a one-year beta of 0.94, indicating low volatility on the counter.
On the earnings front, KPIT Tech logged a net profit of Rs 104 crore in the December quarter (Q3 FY23), up 48 per cent from Rs 70.3 crore in the same period a year ago. The company’s revenue from operations stood at Rs 917.11 crore in Q3 FY23, a year-on-year (YoY) growth of 47 per cent from Rs 622.36 crore in Q3 FY22.
Its sales jumped 47.36 per cent to Rs 917.92 crore in Q3 FY23 against Rs 622.37 crore in the corresponding quarter of the previous fiscal. Sequentially, KPIT Tech reported a profit of Rs 83.48 crore in Q3 FY23 against Rs 65.10 crore in Q2 of the ongoing financial year.
KPIT Tech is an India-based technology company, which is focused on automobile engineering and mobility solutions. The company offers electronic and mechanical engineering solutions to its customers. It also analyses data for diagnostics, maintenance and tracking of assets and related connectivity solutions, including data and analytics beyond embedded or mechanical engineering and their connectivity and integration with back-end information technology (IT) systems and platforms for the automobile and mobility sector.
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