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Check Before You Invest : KPIT Technologies Ltd

BSE: 542651 NSE: KPITTECH ISIN: INE04I401011
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does KPIT Technologies Ltd belong to?
KPIT Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is KPIT Technologies Ltd a good quality company?
KPIT Technologies Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is KPIT Technologies Ltd undervalued or overvalued?
KPIT Technologies Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is KPIT Technologies Ltd a good buy now?
KPIT Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of KPIT Technologies Ltd?
KPIT Technologies Ltd revenue growth is 19.9% for FY-2025 , which is below its 5 year CAGR of 22.1% , indicating slower growth.
Q.2 Gross Profit margin of KPIT Technologies Ltd?
KPIT Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.2% for FY-2025 , which is above its 5 year median of 19.1% , indicating increasing margins.
Q.3 Operating Profit Margin of KPIT Technologies Ltd?
KPIT Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.2% for FY-2025 , which is above its 5 year median of 18.88% indicating increasing margins.
Q.4 Net Profit Margin of KPIT Technologies Ltd?
KPIT Technologies Ltd Net Profit Margin is 14.37% for FY-2025 , is above with its 5 year median of 11.5%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 23.2 19.1
Operating Profit Margin 21.2 18.88
Net Profit Margin 14.37 11.5
Q.5 Return on Asset of KPIT Technologies Ltd?
KPIT Technologies Ltd Return on Asset is 18.57%, which is above its 5 year historical median of 13.84%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of KPIT Technologies Ltd?
KPIT Technologies Ltd Return on equity is 34.01% for FY-2025 , which is above its historical median of 26.55%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of KPIT Technologies Ltd?
KPIT Technologies Ltd Return on capital employed is 46.04% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of KPIT Technologies Ltd?
KPIT Technologies Ltd Cash conversion cycle is 46 days, below its historical median of 49 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.29 1.2
ROE 34.01 26.55
ROCE 46.04 35.12
Cash Conversion Cycle 46 days 49 days
Q.9 Debt to Equity ratio of KPIT Technologies Ltd?
KPIT Technologies Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of KPIT Technologies Ltd?
KPIT Technologies Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KPIT Technologies Ltd?
Promoters hold 39.42% of the KPIT Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KPIT Technologies Ltd vs industry peers?
KPIT Technologies Ltd revenue CAGR is 22.06% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,842.4 23.6
Gross Profit 1,355.3 1.9
Operating Profit 1,230 1.2
Net Profit 840 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.29 0.45
ROE 34.01 4.09
ROCE 46.04 6.4
Cash Conversion Cycle (days) 46.27 36

Valuation & price assessment

Q.1 Stock return of KPIT Technologies Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 30.42% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 30.4% -6.5% -36.6%
Q.3 Valuation ratios of KPIT Technologies Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 27.06 54.78 22.96
Price to Book 5.72 11.44 2.61
Price to Sales 3.1 6.18 4.40
EV to EBITDA 13.54 29.62 17.20

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