Sunidhi Securities & Finance has recommend buy rating on KPIT Cummins Infosystems with a target of Rs 140 in its report dated March 03, 2010.
"KPIT's specialized and niche set of offerings span from Engineering (Advanced Technology Solutions - Automotive and Semiconductor Solutions), through Enterprise IT & Business Intelligence to BPO/ KPO) solutions. KPIT's strategy continues to be to focus on a small set of industry verticals and a small number of named target customers. In its focus verticals of automotive, industrial and high-tech verticals, KPIT is a niche player with relatively high-end offerings for the CIO, CTO and CFO of the customers. In October 2009, KPIT bought US-based Sparta Consulting Inc. for $38 million (Rs 180 crore). KPIT is likely to post an EPS of Rs 11.8 in FY10 and Rs 13.5 in FY11. At the CMP of Rs 112, the share is trading at a P/E of 9.8x on FY10E and 8.3x on FY11E. We recommend BUY with a target of Rs 140 in the medium term, "says Sunidhi Securities & Finance report.
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