Buy KPIT Technologies, target price Rs 800: Prabhudas Lilladher

Prabhudas Lilladher has buy call on KPIT Technologies with a target price of Rs 800. The current market price of KPIT Technologies is Rs 717. Time period given by analyst is Medium Term when KPIT Technologies price can reach defined target. Prabhudas Lilladher recommended to keep stop loss at Rs 680.

KPIT Technologies, incorporated in the year 2018, is a Small Cap company (having a market cap of Rs 19684.90 Crore) operating in IT Software sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 754.32 Crore, up 7.51 % from last quarter Total Income of Rs 701.62 Crore and up 25.31 % from last year same quarter Total Income of Rs 601.95 Crore. Company has reported net profit after tax of Rs 82.13 Crore in latest quarter.

The company’s top management includes Mr.S B Ravi Pandit, Mr.Anup Sable, Prof.Rajiv Lal, Ms.Bhavna Doshi, Mr.B V R Subbu, Mr.Anant Talaulicar, Mr.Nickhil Jakatdar, Prof.Alberto Sangiovanni Vincentelli, Mr.Sachin Tikekar, Mr.Kishor Patil, Mr.Chinmay Pandit. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 27 Crore shares outstanding.

Investment Rationale
The stock has made high bottom formation and is now heading towards the previous peak of Rs 745 and a breakout can be anticipated to reach the target of around Rs 800 levels. The RSI indicator has been on the rise and also with decent volume, the brokerage recommends a buy in this stock for an upside target of Rs 800 keeping a stop loss of Rs 680.

Promoter/FII Holdings
Promoters held 40.11 per cent stake in the company as of 30-Sep-2022, while FIIs owned 15.99 per cent, DIIs 13.52 per cent.