Reduce KPIT Technologies, target price Rs 526: ICICI Securities

ICICI Securities has reduce call on KPIT Technologies with a target price of Rs 526. The current market price of KPIT Technologies is Rs 568.85. Time period given by analyst is one year when KPIT Technologies Ltd. price can reach defined target.

KPIT Technologies Ltd., incorporated in the year 2018, is a Small Cap company (having a market cap of Rs 16079.91 Crore) operating in IT Software sector.

KPIT Technologies Ltd. key Products/Revenue Segments include Software Services and Sale of Products for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 664.81 Crore, up 5.37 % from last quarter Total Income of Rs 630.92 Crore and up 21.62 % from last year same quarter Total Income of Rs 546.64 Crore. Company reported net profit after tax of Rs 80.05 Crore in latest quarter.


Investment Rationale
KPIT currently trades at 38x FY24E P/E for FY22-FY24E EPS CAGR of 23%. The brokerage believes, at current levels, the stock is fairly valued and see limited upside hereon. It revises the target price to Rs526 (prior: Rs535), valuing the company at 34x FY24E EPS.

Promoter/FII Holdings
Promoters held 40.11 per cent stake in the company as of 31-Mar-2022, while FIIs owned 17.1 per cent, DIIs 11.21 per cent.