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Last Updated : Jan 17, 2019 04:04 PM IST | Source: Moneycontrol.com

Buy KPIT Technologies; target of Rs 270: Cholamandalam Securities

Cholamandalam securities is bullish on KPIT Technologies has recommended buy rating on the stock with a target price of Rs 270 in its research report dated January 17, 2019.

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Cholamandalam Securities' research report on KPIT Technologies


In 3QFY19, KPIT reported a sequential decline of 2.3% to USD 149mn and down 1.6% QoQ to INR 10,613mn (4% below CSEC estimate of INR 11,093mn) on account of decline in IT services revenues (-7.5% QoQ) which was impacted by seasonal furloughs, holidays and lower billing rate on two key projects delivered during the quarter. However, engineering showed a growth of 5.7% QoQ. The CC revenue growth for 9MFY19 stood at 9%YoY, within the management guidance of 8-10%.


Outlook


The stock is trading at a reasonable valuation of P/E of 10.6X/9.4x on FY20E/FY21E EPS, respectively. We arrive at a revised price target of INR 270 based on P/E of 12x FY21EPS and give a BUY rating on the stock.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jan 17, 2019 04:04 pm
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