Dashboard/KPITTECH

KPITTECH

FAIRLY_VALUED

KPIT Technologies

IT · NSE

↓ 2.4% vs fair value

52W Low

₹625

+11.2% from low

52W High

₹1,435

-51.6% from high

News sentiment (3 articles)

1 bull1 neutral1 bear

✦

Analyst Note

Today

KPIT Technologies trades at ₹695, roughly in line with its fair value of ₹678.83, offering minimal margin of safety. The company demonstrates solid operational quality with a strong ROCE of 35.5% that is improving, though recent earnings declined 28.7% year-on-year despite 5-year growth of 45.2%. Its balance sheet is healthy with low debt-to-equity of 0.16 and robust free cash flow of ₹1,260 Cr, though the stock trades below both its 50-day and 200-day moving averages. Sentiment remains neutral and stable across both timeframes. This suits investors seeking a fairly-valued IT stock with quality fundamentals but limited upside catalysts in the near term.

Valuation Gauge

FAIRLY_VALUED-2.4% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹695

Fair Value

₹679

Fair Value Analysis

₹679

Based on free cash flow projections and earnings growth potential for IT sector companies | ROCE improving (latest 37.8%) — capital allocation becoming more efficient.

Medium confidence

Cash Flow Analysis

50% weight

₹613

Growth Valuation

50% weight

₹745

Price vs Market

KPITTECH

Nifty 50

Shareholding Pattern

Stock Health Score

Financially Strong

9.6 / 10

Profitability

10/10

ROE of 22.0% is above the IT sector benchmark of 20% — strong returns

Debt & Leverage

10/10

D/E ratio of 0.2x is well within the IT sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 26.5x trades at a 50% discount to IT sector median (53x) — attractively valued

Cash Flow

10/10

FCF margin of 21.6% — exceptional cash generation (₹1,260 Cr)

Earnings Growth

10/10

5yr EPS CAGR of 45.2% is well above the IT sector average of 14.2% — strong growth

Dividend

6/10

Dividend yield of 1.2% provides moderate shareholder returns

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

4.0%

Free cash flow / market cap

Revenue Growth (YoY)

+9.4%

Year-on-year revenue change

Profit Growth (YoY)

-28.9%

Year-on-year PAT change

Operating Cash Flow

₹1.4K Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹26.2

P/E Ratio

26.5x

P/B Ratio

5.8x

ROE

22%

ROCE

35.5%

Debt / Equity

0.16x

Beta

-0.2

Div Yield

1.2%

FCF (Cr)

₹1,260 Cr

Revenue (Cr)

₹5,842 Cr

EPS Growth 5Y

45.2%

Mkt Cap (Cr)

₹18,995 Cr

52W High

₹1,434.5

52W Low

₹624.9

Book Value/Share

₹119.2

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹6.3K Cr	₹1.2K Cr	20.0%	₹719 Cr	₹26.23
2025-03-31	₹5.8K Cr	₹1.2K Cr	21.0%	₹840 Cr	₹30.63
2024-03-31	₹4.9K Cr	₹991 Cr	20.0%	₹599 Cr	₹21.69
2023-03-31	₹3.4K Cr	₹633 Cr	19.0%	₹387 Cr	₹13.90
2022-03-31	₹2.4K Cr	₹451 Cr	19.0%	₹276 Cr	₹10.00
2021-03-31	₹2.0K Cr	₹307 Cr	15.0%	₹147 Cr	₹5.33
2020-03-31	₹2.2K Cr	₹290 Cr	13.0%	₹148 Cr	₹5.38
2019-03-31	₹641 Cr	₹92 Cr	14.0%	₹55 Cr	₹1.98
2018-03-31	₹0 Cr	₹0 Cr	—	₹0 Cr	₹-27.00

Compounded Growth Rates

Sales Growth

3Y+23.1%

5Y+25.2%

10Y—

Profit Growth

3Y+22.9%

5Y+37.4%

10Y—

EPS Growth

3Y+23.6%

5Y+37.5%

10Y—

Peer Comparison

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
DOLATALGO Dolat Algotech Limited	₹72	₹550.4	+86.9%	10.3	20.4%	UNDERVALUED
CEINSYS Ceinsys Tech Limited	₹995	₹4,355.2	+77.2%	16.5	25.5%	UNDERVALUED
SHILCTECH Shilchar Technologies Limited	₹4,058.1	₹14,624.9	+72.3%	24.6	43.9%	UNDERVALUED
KELLTONTEC Kellton Tech Solutions Limited	₹15.2	₹50.5	+70.0%	8.7	12.7%	UNDERVALUED
ONWARDTEC Onward Technologies Limited	₹232	₹669.5	+65.3%	11.6	19.3%	UNDERVALUED
RADHIKAJWE Radhika Jeweltech Limited	₹57.9	₹159.1	+63.6%	8.3	18.7%	UNDERVALUED
CIGNITITEC Cigniti Technologies Limited	₹1,202.5	₹2,990.5	+59.8%	11	26.8%	UNDERVALUED
DUCON Ducon Infratechnologies Limited	₹3.3	₹6.6	+49.2%	7.7	10.1%	UNDERVALUED