The bull run in KPIT tech stock continued for the fourth trading session in a row on Thursday. The stock began its upward journey on October 20 after the company released strong September earnings, and it has since risen 12.26%.
The stock gained 0.15% to close Thursday's trading session in the green at ₹733.75. During the trade, the stock hit an intraday high of ₹764.
The company reported a 28.26% YoY jump in its consolidated net profit at ₹83.56 crore on the back of strong revenue growth. It reported a 25.31% increase in overall revenues during the September-ending quarter, at ₹754.32 crore, compared to ₹601.9 crore in the same quarter last fiscal.
An industry-leading double-digit salary hike during the quarter impacted the margin by a couple of percentage points, company said.
The Pune-headquartered company achieved its third-highest EBITDA margin in the September-ending quarter at 18.52%, a jump of nearly 91 basis points YoY.
The company reported a total contract value of new deals signed during the quarter at USD 142 million and added that it has a very strong pipeline which includes two deals of USD 100 million and above, PTI reported.
KPIT Tech also raised its revenue growth forecast for FY23 to 31-32 per cent, claiming that the current set of macroeconomic challenges will have little impact on its operations.
The company is confident about its growth despite global uncertainties. KPIT's joint managing director, Sachin Tikekar, said that he is bullish on European business, which contributes nearly 40% of the company's revenues.
Meanwhile, on September 21, the company announced its acquisition of Technica Engineering, a company specialising in production-ready system prototyping (a combination of network system architecture, hardware prototyping, and integration), automotive ethernet products, and tools for validation, according to media reports.
The managing director of KPIT Tech said the acquisition will start reflecting in the second half and will help take the overall revenue growth to up to 32%.
While a majority of the large-cap IT stocks are struggling to climb up due to ongoing rate hikes from central banks and mounting recession fears, shares of KPIT Tech defied all odds and delivered a multi-bagger return of nearly 140% in the past one-year period, while the nifty has fallen 2.01 per cent during the same time frame. Further, over the last three years, the market price of the stock has zoomed by 670%.
The stock's 52-week high and low levels were Rs. 801 apiece and Rs. 300.25 apiece, respectively. Taking the current price into consideration, the stock is up by 144% from its 52-week low.
On the technical charts, the stock is trading 29 per cent above its 200-day moving average. On the other hand, the Relative Strength Index (RSI) of the stock stands at 71.3.
KPIT Tech is a small-cap IT stock with a market cap of ₹20,246 crore. The company provides software to automotive companies. The company made its initial public offering (IPO) in 2019, which was 50 times oversubscribed.
An average of 09 analysts polled by MintGenie have a 'hold call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.