Home / Markets / Stock Markets /  KPIT Technologies share price hits life-time high. Sell, hold or buy?

Stock market today: KPIT Technologies shares have been in uptrend since announcement of Q3FY23 results last week. However, it seems hat the stock still has some steam left for upside swing. KPIT Technologies share price today opened upside and hit fresh life-time high of 819.55 apiece on NSE in early morning deals. However, stock market experts believe that the stock may go up to 850 apiece levels in next two to three months as the stock has given sideways channel breakout above 760 per share levels. They said that the IT major has given better quarterly results and looks better positioned in comparison to its peers.

As per the Anand Rathi research report, "With revenue up 2.4 per cent q/q (org. est.), KPIT’s Q3 was ahead of peers and the broader industry. Technical was fully integrated and had a seasonally strong Q3. $272m TCV incl. the Renault deal and a strong deal pipeline (up 70% y/y) suggest a strong Q4 too for KPIT. Despite integration costs the EBITDA margin was flattish q/q and y/y, and appears to be heading to 20 per cent. We roll forward to FY25 and upgrade to a Buy, raising our target to 850 (from Rs700)."

Expecting bull trend in KPIT Technologies shares to further continue, Sumeet Bagadia, Executive Director at Choice Broking said, "KPIT Technologies share price has given sideways channel breakout above 760 apiece levels on closing basis and the scrip is still looking positive on chart pattern. Those who have this stock in their portfolio are advised to hold the scrip further and accumulate further for two to three month target of 850 apiece."

Advising fresh investors to wait, Sumeet Bagadia said, "The stock has been in uptrend and it is facing minor hurdle at 800 to 810 levels. Fresh entry is advisable in 750 to 760 apiece channel but one must maintain stop loss at 730 per share levels. Those who are holding the scrip may accumulate in this zone with stop loss at 730 for two to three month target of 850 apiece."

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In Q3FY23 results, KPIT Technologies' Q3 margin was flat q/q, up 65bps y/y, to 14.1% after absorbing integration-related expenses. Integration costs are likely to persist through the next two quarters. Technical’s operating margin is ~20%. We expect margins to keep inching up, driven by SG&A leverage, a modest rise in employee costs, and higher utilisation. Currency will also help in Q4. KPIT added 574 employees in Q3 (half from Technical), taking headcount up 34% y/y to 10,490. Abs. EBIT grew 23% q/q, 54% y/y.

KPIT Technologies dividend 2023

While announcing the Q3FY23 results, KPIT Technologies also announced dividend citing, “In continuation to our earlier intimation on January 23, 2023, we wish to inform you that the Board of Directors at its meeting held on January 31, 2023, has approved the payment of an Interim Dividend of Rs. 1.45/- (Rupees one and forty-five paisa only) (14.5%) per Equity Share of Rs. 10/- each for the Financial Year 2022-23." The IT major has fixed 10th February 2023 as record date for dividend payment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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