KPIT Technologies is a leading Indian multinational corporation that provides embedded software and product engineering services to the automotive and mobility ecosystem. Founded in 1990 and headquartered in Pune, India, KPIT has grown to become a global player with development centers across Europe, the USA, Japan, and China.
KPIT Overview
| Feature | Description |
|---|---|
| Focus | Automotive and mobility ecosystem |
| Expertise | Cutting-edge technologies (autonomous driving, electric vehicles, connected cars, ADAS) |
| Global reach | Development centers in India, Europe, USA, Japan, China |
| Commitment to innovation | R&D investment, dedicated team of engineers and scientists |
KPIT Products
| Category | Solution/Service | Description |
|---|---|---|
| Autonomous Driving & ADAS | Level 2-5 ADAS Development:Â Sensor fusion, path planning, decision making, control algorithms | Enabling autonomous driving features like collision avoidance, lane departure warning, and adaptive cruise control. |
| V2X & Connected Car Infrastructure:Â Cellular V2X, C-V2X technology, cloud-based connectivity platforms | Enhancing road safety and traffic management through vehicle-to-everything communication. | |
| AI-powered ADAS:Â Driver monitoring systems, fatigue detection, anomaly detection | Utilizing AI to improve ADAS functionalities and provide personalized driving experiences. | |
| Electric & Conventional Powertrain | Electric Vehicle Development:Â Battery management systems, motor control algorithms, EV charging infrastructure | Optimizing electric vehicle performance and efficiency, supporting EV adoption. |
| Internal Combustion Engine Optimization:Â Engine calibration, fuel efficiency improvement, emissions reduction | Enhancing the performance and environmental footprint of conventional vehicles. | |
| Hybrid & Powertrain Electrification:Â Design and development of hybrid powertrains, electrification of existing vehicles | Integrating electric components into traditional powertrains for increased efficiency and reduced emissions. | |
| Connected Vehicle | Telematics & Diagnostics:Â Remote vehicle monitoring, fault detection, over-the-air updates | Enabling fleet management, predictive maintenance, and improved customer service. |
| Infotainment & HMI Development:Â Advanced in-vehicle displays, intuitive user interfaces, voice recognition | Enriching the driving experience with information and entertainment systems. | |
| Cybersecurity Solutions:Â Secure vehicle communication, threat detection and prevention | Protecting connected vehicles from cyberattacks and ensuring data privacy. | |
| Integrated Diagnostics & Aftersales Transformation (iDART) | Remote Diagnostics & Repair:Â Online fault diagnosis, guided repair workflows, digital service records | Streamlining vehicle maintenance and repair processes using digital tools. |
| Predictive Maintenance:Â Analyzing sensor data to predict potential issues and schedule preventive maintenance | Reducing downtime and maintenance costs. | |
| Customer Care & Support:Â AI-powered chatbots, remote assistance tools | Enhancing customer service experience for vehicle owners and fleets. | |
| AUTOSAR | AUTOSAR Architecture & Design:Â Implementation of AUTOSAR standard for in-vehicle software development | Ensuring smooth operation and compatibility of complex vehicle systems. |
| AUTOSAR Development & Test Automation:Â Automated software development and testing tools | Optimizing AUTOSAR-based software development processes. | |
| AUTOSAR Training & Support:Â Training programs and expert support for AUTOSAR implementation | Fostering knowledge and expertise in AUTOSAR development. | |
| Vehicle Engineering & Design | Vehicle Body & Cabin Design:Â 3D modeling, virtual prototyping, design visualization | Supporting vehicle design process from concept to production. |
| CAE & Digital Twin Simulation:Â Virtual testing and validation of vehicle performance and safety | Optimizing vehicle design and reducing physical prototyping costs. | |
| Manufacturing Engineering & Process Optimization:Â Streamlining manufacturing processes and automation solutions | Improving production efficiency and quality control. |
KPIT Awards and Recognition
| Award/Recognition | Category | Year | Awarded by | Significance |
|---|---|---|---|---|
| Most Admired Company of the Year | Global Recognition | 2023 | People Matters | Overall excellence across 30 sectors and industries in India |
| KPIT Shodh Best Thesis Award & Groundbreaking Research Award | Innovation & Research | Ongoing | KPIT | Fostering academic research in mobility and related fields |
| Service Delivery Excellence of the Year Award | Service Quality | 2021 | NASSCOM | Outstanding performance in delivering engineering R&D services |
| Frost & Sullivan Global Over-the-Air (OTA) and Cloud Platform Technology Innovation Leadership Award | Technology Leadership | 2021 | Frost & Sullivan | Innovative solutions in OTA and cloud technology for automotive applications |
| Recognition from the United Nations for Contribution to Sustainable Transport | Sustainability | 2020 | United Nations | Efforts in promoting environmentally friendly mobility solutions |
| Public Transport Strategy Award by UITP | Public Transport Innovation | 2019 | UITP | Innovative approach to public transportation planning and development |
| Project Development Excellence Award by Volvo Buses India | Automotive Engineering | 2014 | Volvo Buses India | Outstanding project execution in the bus manufacturing industry |
| Promising Transport Innovation Award at International Transport Forum Summit | Transportation Innovation | 2016 | International Transport Forum | groundbreaking contribution to future mobility with REVOLO project |
| Smart Electric Bus Technology wins One Globe Award for Excellence in Research & Development | Environmental Innovation | 2016 | One Globe Awards | Commitment to developing green and sustainable transportation technologies |
| Order of Merit Award at BW Businessworld Smart Cities Conclave & Awards | Smart City Solutions | 2016 | BW Businessworld | Innovation in Intelligent Transportation Systems (ITS) for smart cities |
| European IDTechEx Energy Harvesting & IoT Awards | IoT Innovation | 2015 | IDTechEx | Cutting-edge IoT solutions for the automotive industry |
| Wall Street Journal Innovation Award in Transport Category | Automotive Innovation | 2014 | Wall Street Journal | Breakthrough advancements in vehicle technology and transportation systems |
KPIT Fundamentals
| Metric | Value | Description |
|---|---|---|
| Market Capitalization | ₹41,631.48 Cr | Total value of outstanding shares |
| Revenue | ₹2,244.4 Cr | Amount earned from selling goods or services |
| EBITDA | ₹544.4 Cr | Earnings before interest, taxes, depreciation, and amortization |
| EPS | ₹24.4 | Earnings per share of common stock |
| P/E Ratio | 83.00 | Price per share divided by earnings per share |
| P/B Ratio | 24.94 | Price per share divided by book value per share |
| Dividend Yield | 0.50% | Annual dividend paid per share divided by the stock price |
| Debt/Equity Ratio | 0.30 | Total debt divided by total shareholder equity |
| Book Value | ₹187.00 | Net assets per share |
| Face Value | ₹10.00 | Nominal value per share |
| ROE | 21.92% | Return on equity, measuring profitability relative to shareholder equity |
| Debt | ₹673.2 Cr | Total amount of outstanding debt |
KPIT Revenue and Net Profit
| Period | Revenue (INR Cr) | Net Profit (INR Cr) | YoY Revenue Growth | YoY Net Profit Growth |
|---|---|---|---|---|
| FY 2023 (Estimated) | 2,244.4 | 421.4 | 51.7% | 39.0% |
| Q2 FY 24 | 1,409.0 | 319.0 | 54.2% | 41.5% |
| FY 2022 | 1,479.7 | 303.2 | 19.5% | 88.0% |
| Q4 FY 22 | 599.8 | 171.0 | 17.0% | 60.0% |
| FY 2021 | 1,239.5 | 160.2 | 24.2% | 76.4% |
KPIT Shareholding Patterns
| Shareholder Category | Percentage Holding | Absolute (Cr) |
|---|---|---|
| Promoters: | 39.47% | 16,406.49 |
| * K P Pitre & Family | 22.41% | 9,297.30 |
| * Technology Investment Holdings Pte Ltd | 9.90% | 4,109.19 |
| * Other Promoters | 7.16% | 2,999.99 |
| Foreign Institutional Investors (FIIs): | 25.69% | 10,665.72 |
| Domestic Institutional Investors (DIIs): | 24.76% | 10,292.00 |
| * Mutual Funds | 17.42% | 7,205.85 |
| * Insurance Companies | 3.40% | 1,405.01 |
| * Banks & FIs | 3.94% | 1,681.14 |
| Retail Investors: | 7.90% | 3,270.94 |
| Others: | 2.18% | 905.94 |
KPIT Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Average Target (INR) | Range (INR) | Source |
|---|---|---|---|
| 2024 | 2,354.05 | 2,354.05 | Analysts’ estimates |
| 2025 | 4,403.40 | 3,256.49 – 6,050.31 | Analysts’ estimates |
| 2026 | 6,553.58 | 4,785.24 – 9,321.91 | Limited sources |
| 2027 | 12,701.11 | 6,050.31 – 19,351.92 | Limited sources |
| 2028 | 22,358.45 | 7,773.65 – 36,943.24 | Limited sources |
KPIT Share Price Target for 2024
The average share price target for KPIT in 2024 is around ₹2,354.05.
KPIT Share Price Target for 2025
The average share price target for KPIT in 2025 is around ₹3,256.49 – ₹6,050.31.
KPIT Share Price Target for 2026
The average share price target for KPIT in 2026 is around ₹4,785.24 – ₹9,321.91.
KPIT Share Price Target for 2027
The average share price target for KPIT in 2027 is around ₹6,050.31 – ₹19,351.9.
KPIT Share Price Target for 2028
The average share price target for KPIT in 2028 is around ₹7,773.65 – ₹36,943.24.
KPIT Dividend History
KPIT Technologies does not currently have a dividend history.
KPIT Share Split History
KPIT Technologies has not undergone any stock splits since January 1, 2000.
| Date | Bonus Ratio | Record Date | Ex-Bonus Date |
|---|---|---|---|
| May 29, 2019 | 1:1 | July 10, 2019 | July 11, 2019 |
| May 28, 2018 | 1:1 | July 09, 2018 | July 10, 2018 |
| May 26, 2017 | 1:1 | July 07, 2017 | July 08, 2017 |
| May 25, 2016 | 1:1 | July 04, 2016 | July 05, 2016 |
| May 22, 2015 | 1:1 | July 02, 2015 | July 03, 2015 |
Future Outlook of KPIT
- Strong growth in automotive and mobility markets: KPIT’s expertise in electric vehicles, connected cars, autonomous driving, and other mobility technologies positions them to benefit from this sector’s projected booming growth.
- Increasing R&D and innovation: KPIT continuously invests in R&D, developing cutting-edge solutions that attract new clients and strengthen their competitive edge.
- Global presence and diverse client base:Â The company’s reach across multiple continents and a diverse range of clients mitigate industry-specific risks and provide wider growth opportunities.
Read more:
- BHEL Share Price Target for 2024, 2025, 2026, 2027, 2028
- IDFC First Bank Share Price Target for 2024, 2025, 2026, 2027, 2028
Risks Associated With Investing in KPIT
| Category | Risk | Description | Potential Impact | Mitigation Strategies |
|---|---|---|---|---|
| Industry/Market Risks | Dependence on Automotive Industry: | Strong reliance on the health and growth of the automotive industry, particularly its transition to electric vehicles and connected technologies. | Revenue and profit decline if the automotive industry faces a downturn or the transition to electric vehicles is slower than expected. | Diversify beyond automotive clients, focus on other growth areas like aerospace or defense. |
| Competition: | Intense competition from established players and disruptive startups in the automotive and technology sectors. | Market share loss and difficulty in maintaining premium valuations. | Focus on innovation, build strong client relationships, differentiate through unique offerings. | |
| Technological Disruption: | Rapid advancements in automotive and technology sectors could render current solutions obsolete. | Loss of competitive edge and potential decline in revenue and profitability. | Continuous R&D investment, maintain flexibility and adaptability to stay ahead of the curve. | |
| Economic/Geopolitical Risks | Economic Slowdown: | Global economic recession or regional market downturns could affect demand for KPIT’s services. | Reduced revenue and profitability. | Focus on cost control, maintain diversified client base, explore international expansion opportunities. |
| Geopolitical Uncertainty: | Trade tensions, political instability, or global conflicts could disrupt supply chains and investor sentiment. | Increased volatility in stock price, potential operational disruptions. | Monitor geopolitical developments, diversify geographically, focus on building resilience. | |
| Company-Specific Risks | Execution Risk: | Inability to successfully execute their growth strategies, commercialize new technologies, or maintain profitability. | Missed growth opportunities, potential decline in investor confidence. | Strong leadership, transparent communication, track record of successful execution. |
| Financial Leverage: | Relatively high debt-to-equity ratio compared to some peers. | Increased financial risk and vulnerability to interest rate hikes. | Maintain balanced capital structure, focus on debt reduction, strong cash flow generation. |
KPIT Competitors
| Category | Competitor | Description | Strengths | Weaknesses |
|---|---|---|---|---|
| Tier 1 Global IT Services Companies: | TCS: | Large, established player with global reach and diverse service offerings. | Strong brand recognition, vast resources, and expertise across various industries. | Relatively high pricing, less focus on specialized automotive and mobility solutions. |
| Infosys: | Large IT services company with strong presence in automotive and manufacturing sectors. | Deep industry knowledge, focus on digital transformation solutions, global delivery network. | Less focus on cutting-edge automotive technologies like electric vehicles and connected cars. | |
| Wipro: | Large IT services company with growing presence in automotive and technology sectors. | Expertise in enterprise application integration and cloud solutions, global delivery network. | Less specialized focus on cutting-edge automotive technologies compared to KPIT. | |
| Accenture: | Large consulting and technology services company with strong automotive industry expertise. | Strong global presence, expertise in digital strategy and business transformation. | High reliance on consulting services, less focus on pure technology solutions. | |
| Tier 2 Automotive and Mobility Specific Companies: | Tata Elxsi: | Indian engineering services company focused on automotive, aerospace, and defense sectors. | Deep domain expertise in automotive engineering and design, experience with connected car technologies. | Relatively smaller size compared to global IT giants, less diversified client base. |
| Cyient: | Indian engineering services company focused on automotive, aerospace, and defense sectors. | Strong expertise in product engineering and design, experience with digital manufacturing solutions. | Relatively smaller size compared to global IT giants, less focus on software development. | |
| Alta Vista Technology: | US-based company specializing in connected car and embedded software solutions. | Deep expertise in automotive software development and integration, established relationships with major car manufacturers. | Limited global presence compared to larger IT services companies, higher pricing. | |
| Emerging Startups: | PlusAI: | US-based startup developing self-driving truck technology. | Cutting-edge autonomous driving technology, innovative partnerships with key players in the industry. | Early-stage company with limited track record, high dependence on technology success. |
| BlueSpace.ai: | US-based startup developing AI-powered software for connected cars and smart cities. | Innovative AI and machine learning technology, focus on emerging markets. | Early-stage company with limited revenue and profitability, high competition in the space. |
KPIT Share Price FAQs
Q: What is the average analyst estimate for KPIT’s share price in 2024?
A: Based on a survey of several financial analysts, the average share price target for KPIT in 2024 is around ₹2,354.05. However, remember that these are estimates and the actual price may differ significantly.
Q: What is the historical dividend payout of KPIT Technologies?
A: KPIT Technologies does not currently have a dividend history. The company chooses to reinvest its profits back into the business for growth and expansion, rather than distributing them as dividends to shareholders.
DISCLAIMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
