Buy KPIT Technologies; target of Rs 280: Motilal Oswal

Motilal Oswal is bullish on KPIT Technologies has recommended buy rating on the stock with a target price of Rs 280 in its research report dated January 16, 2019.

January 17, 2019 / 03:10 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on KPIT Technologies

KPIT's USD revenue/EBITA/PAT grew 8.3%/45.7%/32.7% YoY in 9MFY19. 3QFY19 revenue declined 1.7% QoQ in constant currency (3% miss). While Engineering SBU (43% of revenue) grew 6.4% QoQ, IT Business dragged with a decline of 7.5% QoQ due to completion of a few large projects. EBITDA margin shrank 60bp QoQ (excluding translation loss) - 110bp miss - due to weaker revenue. PAT declined 25% QoQ (+6% YoY) to INR656m, 14% below our estimate due to the operational miss.


We value the three entities (KPIT-ITS, KPIT-Engineering and Birlasoft) separately - the IT businesses at a forward earnings multiple of 10x and Engineering business at 15x - to arrive at a price target of INR280 (29% upside). Maintain Buy.

For all recommendations report, click here

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

Broker Research
first published: Jan 17, 2019 03:10 pm

stay updated

Get Daily News on your Browser