Multibagger IT Stock Hits 52-Week High After Net Profit Zooms 69% YoY, Buy?

Multibagger IT Software stock KPIT Technologies shares hit 52-week high in trade on October 31 after the company announced a surge of 69.21% year-on-year in its net profit to Rs 141.40 crore for Q2 ended September 30, 2023. The company witnessed strong growth in such circumstances when IT Services sector reported muted growth in the wake of macroeconomic uncertainties. Current market price of KPIT Technologies stock on BSE is Rs 1219.50 per share with intraday gain of 2.96%. KPIT Technologies share offered a rally of 75% YTD and soared 294% in last 2-years. Check details below:

KPIT Technologies Quarterly Results: KPIT Technologies' net profit jumped by 5.18% over the last quarter and consolidated revenue zoomed by 60.23% over the preceding fiscal, and by 8% over the last quarter to Rs 1208.86 crore for the quarter ended September 30, 2023, as per its BSE filing. Its order book for the period stood at $156 million for the quarter, down from $190 million reported in Q1. Meanwhile, the company's EBITDA margin for Q2 reported at 20% after absorbing the impact of wage hikes during the quarter.

Axis Securities Recommends Buy Call: Brokerage firm Axis Securities has assigned buy call to KPIT Technologies stock with target price of Rs 1500 per share. If you buy KPIT Technologies shares at current market price of Rs 1219.50 apiece, you can fetch potential return of 23%.

According to the analyst, "We believe KPIT is well-placed to revive its growth momentum and this recovery would be driven by 1) Significant growth opportunities in the ER&D space in the automobile vertical,2) Sustainable operating margins on account of better services mix and improving operational efficiencies,3) Robust balance sheet, strong return ratios, and healthy free cash flow generation, 4) Efficient execution capabilities, and 5) The company's ramp up in new deal wins along with strong client additions. We believe these attributes would aid KPITin achieving sustainable growth in the long term."

KPIT Technologies Stock Performance & Return: Current market price of KPIT Technologies share on BSE is Rs 1219.50 apiece. Its 52-week high price is Rs 1253.90 per share and 52-week low price is Rs 623.00 per share, respectively. The company has a market capitalisation of Rs 33,398.94 crore. KPIT Technologies shares zoomed 72% in last 1-year, gained 294% in last 2-years, and soared 1197% in last 3-years.

KPIT Technologies About: KPIT Technologies is a global partner to the automotive and Mobility ecosystem for making software-defined vehicles a reality. It is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 11000+ automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates its clients' implementation of next-generation technologies for the future mobility roadmap, according to its official website.

Disclaimer

The stock just highlights the rally after quarterly results and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.