KPIT Technologies Ltd.

May 23, 2016 . Equities Desk

KPIT Technologies (KPIT) is focused on providing IT consulting and product engineering solutions and services to automotive, manufacturing, energy & utilities and life sciences companies. Leveraging its technology and domain prowess, KPIT has long standing partnerships with 200+ global corporations. The company caters to various industries viz; automotive, manufacturing (life science, medical devices, industrial manufacturing), energy & utilities, hi-tech, government & defense. With over two decades of experience, the company has become a specialized provider of software solutions to automotive & transportation companies. Its clear focus on automotive and transportation vertical can be gauged from its patents fillings. It has filed 53 patents till date.

Valuation & View:

The huge investment towards building technologies and solutions in the automotive and manufacturing space, will aid growth and provide scalability to KPIT. We expect revenue and Adj. PAT to grow at a CAGR of ~10% and ~12% over FY16- 18E. We initiate coverage on the stock with a BUY rating with a target price of Rs. 189 (based on FY18E P/E of ~9.6x), implies a potential upside of ~15% over the next 1 year.

Research Report KPIT Technologies Ltd

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