IT - Software
KPIT Tech is a leading company in the Computers - Software & Consulting sector, focusing primarily on the automobile and mobility industry. It operates under the stock ticker KPITTECH and boasts a market capitalization of Rs. 35,786.8 Crores.
The company specializes in providing a range of embedded software, artificial intelligence, and digital solutions. Its offerings include solutions for autonomous driving and advanced driver assistance systems. These solutions encompass various services such as:
KPIT Tech also delivers electric powertrain solutions, featuring:
In addition to this, the company offers connected vehicle solutions, a production platform and tools, as well as digital connected solutions like asset management, remote software management, and predictive maintenance.
Another notable aspect of KPIT Tech's offerings is its integrated diagnostics and aftersales transformation platform, which is a cloud-based ecosystem that simplifies the development and validation of E/E diagnostic functions. The company also provides APPS (AUTOSAR platform) services along with vehicle engineering and design services.
Founded in 1990, KPIT Tech, formerly known as KPIT Engineering Limited, changed its name to KPIT Technologies Limited in March 2019 and is based in Pune, India.
In terms of financial performance, KPIT Tech has demonstrated significant growth, achieving a trailing 12 months revenue of Rs. 5,774.3 Crores and a profit of Rs. 760.8 Crores over the past four quarters. The company has experienced revenue growth of 144.8% in the past three years and distributes dividends to its investors, with a dividend yield of 0.7% per year, returning Rs. 9.2 dividend per share in the last year.
Size: Market Cap wise it is among the top 20% companies of india.
Technicals: Bullish SharesGuru indicator.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 13% is a good sign.
Balance Sheet: Strong Balance Sheet.
Growth: Awesome revenue growth! Revenue grew 24.8% over last year and 144.8% in last three years on TTM basis.
No major cons observed.
Comprehensive comparison against sector averages
KPITTECH metrics compared to IT
Category | KPITTECH | IT |
---|---|---|
PE | 44.00 | 25.46 |
PS | 5.80 | 3.94 |
Growth | 24.8 % | 4.3 % |
KPITTECH vs IT (2021 - 2025)
Summary of KPIT Tech's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
KPIT Technologies' management outlook remains positive, with reiterated revenue guidance of 18-22% YoY growth for FY25 and an upgraded EBITDA margin target of 21%+. Key highlights include:
Management remains confident in leveraging SDV-led transformation and diversified client engagements to sustain growth.
Last updated: Feb 25
Question 1: Bhavik Mehta (JPMorgan)
Text: "Between US and Europe, where do you see demand recovery sooner? How does the shift from EVs to hybrids impact KPIT's work?"
Answer: Europe leads demand recovery, followed by the US and Asia. The shift to hybrids and alternate powertrains creates opportunities, as KPIT's focus spans SDV (Software Defined Vehicles), digital cockpits, and autonomy, which extend beyond EVs.
Question 2: Garvit Goyal (Nvest Analytics)
Text: "What is the progress on QORIX, and when will revenue contribute? How is SDV broader than EVs?"
Answer: QORIX is on track with one significant OEM client and advanced engagements. Revenue contributions are expected in FY26. SDV encompasses software-driven architectures across vehicle subsystems (e.g., cockpit, chassis), not limited to EVs.
Question 3: Karan Uppal (PhillipCapital)
Text: "Does the Honda-Nissan merger pose risks? How is the deal pipeline shaping up?"
Answer: The merger is seen as a growth opportunity, leveraging KPIT's SDV expertise. The pipeline improved with $236M deals in Q3, including a major SDV program, and broader client/geographic diversification.
Question 4: Jinesh Shah (RSPN Ventures)
Text: "Are OEM financial struggles affecting KPIT's guidance? What is QORIX's financial impact?"
Answer: KPIT reiterated confidence in its 18"“22% revenue guidance, driven by productivity gains and pipeline strength. QORIX's revenue cycle is expected to start next quarter, with FY26 contributions.
Question 5: Nitin Padmanabhan (Investec)
Text: "When will Europe/US recover? What drove the spike in other expenses?"
Answer: Europe/US recovery expected by Q1 2025. Higher expenses were one-offs (tech/management training). Margin resilience is tied to AI-driven productivity and premium deal pricing.
Question 6: Ruchi Mukhija (ICICI Securities)
Text: "Can Asia sustain growth? How is productivity improving despite flat headcount?"
Answer: Asia's growth (Japan, Korea, India) is buoyed by SDV and execution for global clients. Productivity gains stem from automation, AI, and outcome-based revenue models, not headcount expansion.
Question 7: Chandramouli Muthiah (Goldman Sachs)
Text: "What new clients are driving growth? How are European OEMs recovering?"
Answer: New clients include legacy OEMs, off-highway/commercial vehicle makers, and semiconductor firms. European OEMs are consolidating partners, favoring KPIT's cost-effective SDV solutions.
Question 8: Bharat Shah (ASK Investment)
Text: "Is KPIT's growth tied to client challenges? Why is CV revenue soft?"
Answer: KPIT's problem-solving focus insulates it from client cyclicality. CV softness is client-specific; investments in off-highway/commercial verticals aim for future growth.
Question 9: Mihir Manohar (Carnelian)
Text: "How has the pipeline grown? What's the US policy impact?"
Answer: Pipeline grew ~20% QoQ, led by Europe. US policy shifts (EV incentives) broaden OEM strategies but don't affect KPIT's SDV-driven opportunities.
Analysis of KPIT Tech's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Rest of the World | 40.8% | 774.7 Cr |
UK & Europe | 38.6% | 734.1 Cr |
Americas | 20.6% | 391.1 Cr |
Total | 1.9 kCr |
Understand KPIT Tech ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
PROFICIENT FINSTOCK LLP | 32.41% |
KISHOR PARSHURAM PATIL | 4.87% |
CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO EMERGI | 2.81% |
MIRAE ASSET FOCUSED FUND | 1.95% |
MOTILAL OSWAL NIFTY 500 ETF | 1.81% |
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED | 1.56% |
MARATHON EDGE INDIA FUND I | 1.48% |
LIFE INSURANCE CORPORATION OF INDIA | 1.32% |
HDFC LIFE INSURANCE COMPANY LIMITED | 1.19% |
DSP MIDCAP FUND | 1.15% |
AJAY SHRIDHAR BHAGWAT | 0.88% |
SHRIKRISHNA MANOHAR PATWARDHAN | 0.4% |
SHASHISHEKHAR BALKRISHNA PANDIT | 0.36% |
SACHIN DATTATRAYA TIKEKAR | 0.27% |
K AND P MANAGEMENT SERVICES PVT LTD | 0.11% |
NIRMALA SHASHISHEKHAR PANDIT | 0.09% |
ANUPAMA KISHOR PATIL | 0.04% |
ASHWINI AJAY BHAGWAT | 0.02% |
HEMLATA A SHENDE | 0.01% |
CHINMAY S PANDIT | 0.01% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
---|---|
Dividend Yield | 0.75% |
Dividend/Share (TTM) | 9.2 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 27.77 |
Financial Health | |
---|---|
Current Ratio | 1.3 |
Debt/Equity | 0.02 |
Debt/Cashflow | 24.9 |
Valuation | |
---|---|
Market Cap | 33.75 kCr |
Price/Earnings (Trailing) | 44.36 |
Price/Sales (Trailing) | 5.85 |
EV/EBITDA | 25.62 |
Price/Free Cashflow | 43.98 |
MarketCap/EBT | 32.06 |
Fundamentals | |
---|---|
Revenue (TTM) | 5.77 kCr |
Rev. Growth (Yr) | 17.38% |
Rev. Growth (Qtr) | -1.7% |
Earnings (TTM) | 760.79 Cr |
Earnings Growth (Yr) | 19.28% |
Earnings Growth (Qtr) | -8.23% |
Profitability | |
---|---|
Operating Margin | 18.23% |
EBT Margin | 18.23% |
Return on Equity | 30.43% |
Return on Assets | 16.59% |
Free Cashflow Yield | 2.27% |
Detailed comparison of KPIT Tech against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
LTIM | LTIMindtreeComputers - Software & Consulting | 1.33 LCr | 38.08 kCr | -0.10% | -6.29% | 29.06 | 3.49 | +6.13% | -0.52% |
PERSISTENT | Persistent SystemsComputers - Software & Consulting | 82.4 kCr | 11.44 kCr | -4.11% | +55.62% | 62.44 | 7.2 | +19.25% | +28.17% |
LTTS | L&T Technology ServicesIT Enabled Services | 44.31 kCr | 10.44 kCr | -7.02% | -12.40% | 34.22 | 4.24 | +11.00% | +1.50% |
TATAELXSI | Tata ElxsiComputers - Software & Consulting | 35.43 kCr | 3.9 kCr | +9.10% | -19.91% | 43.77 | 9.09 | +8.30% | +1.59% |
CYIENT | CyientIT Enabled Services | 13.12 kCr | 7.39 kCr | -6.58% | -37.34% | 19.91 | 1.77 | +4.38% | -1.54% |