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

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%.


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

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First Published on Jan 17, 2019 04:04 pm
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