Shares of KPIT Technologies gained 4.78% on Thursday to reach a fresh 52-week high of ₹ 948.80 apiece on the National Stock Exchange (NSE) after it reported healthy results. The company’s shares closed at ₹ 920.00 apiece.
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KPIT Technologies’ total income grew by 53% to ₹ 1,023.62 crores in the January to March quarter (Q4FY23), as compared to ₹ 664.81 crores in the corresponding quarter last year (Q4FY22). Similarly, its profit increased by 38.47% to ₹ 111.58 crores in the latest quarter, from ₹ 80.58 crores in Q4FY22.
On an annual basis, the company posted an income of ₹ 3405.23 crores in FY 2022-23, up 37.46% compared to ₹ 2477.19 crores in FY 2021-22. Its profit increased by 40.04% to ₹ 386.86 crores in FY 2022-23 as compared to ₹ 276.24 crores in FY 2021-21.
The company recommended a final dividend of ₹ 2.65 per equity share of ₹ 10 each for FY 2022-23, subject to shareholder approval at the ensuing Annual General Meeting (AGM) of the company. The record date for the same will be announced in due course.
In another development, the company informed the exchanges that it will enter into a definitive agreement wherein post regulatory approvals, ZF Friedrichshafen AG (“ZF”) will invest in a currently 100% KPIT subsidiary, Qorix. Based on the existing development cooperation between the companies, the relevant IPs of KPIT and ZF will be transferred into the new company. They intend to create an independent company focused on the creation of a world-class automotive middleware stack.
In the past two years, the company’s share price rose by 366.41% from ₹ 197.25 apiece to the current levels, giving multibagger returns to its investors. If an investor would have invested ₹ 1 lakh in the company’s shares the value of their holdings would have been ₹ 4.66 lakhs today!
KPIT Technologies is a midcap stock with a market capitalization of ₹ 24,480 crores. It has an ideal return on equity of 21.80% and an ideal debt-to-equity ratio of 0.13. its shares were trading at a price-to-earnings ratio (P/E) of 70.96, which is significantly lower than the industry P/E of 74.77, indicating that it might be undervalued as compared to its peers.
Written by Simran Bafna
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