Minor Project

On
STOCK ANALYSIS OF KPIT TECHNOLOGY

For The Partial Fulfillment Of The Requirement For The Award

Of
Bachelor of Business Administration (BBA)Semester IV, Class of
2024

Under The Guidance & Supervision Of: Dr Swagatika Panda

Submitted By
L.N. Varshith Bodapati
BBA Class of 2022-2025

Enrollment No.................... A30606422228.....................................

Amity Global Business School

Hyderabad

1
Title of Minor Project Report: STOCK ANALYSIS OF KPIT TECHNOLOGY

………………………………………………………………………………………………………
I declare that the work presented for assessment in this Minor Project is my own,
that it has not previously been presented for another assessment and that my debts (for
words, data, arguments and ideas) have been appropriately acknowledged.

That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

Student Name and Signature – L.N Varshith Bodapati

Date
Hyderabad

2
Faculty Guide Certificate

This is to certify that Mr./Ms. L.N Varshith Bodapati student of the semester IV class of
BBA 2022-2025 has completed the Minor Project Titled “STOCK ANALYSIS OF KPIT
TECHNOLOGY” It is a bonafide work and has worked under my guidance sincerely for
the partial fulfillment of a Bachelor of Business Administration for the year 2022 – 2025 to
the best of my knowledge and wish him/her success for the future endeavors.

Name & Sign of Faculty- DR. Swagatika Panda

Date:
Place: Hyderabad

3
Acknowledgments

My heartfelt sincere Thanks to Dr. P. Prasada Rao, Director General, Amity Global Business
School Hyderabad for giving me this opportunity to do my project in Stock analysis in KPIT
Technology

My sincere and grateful thanks to my faculty guide Dr. Swagatika Panda for guiding me
throughout my project. My sincere thanks to my family members who stood by me motivating
me to complete my project successfully.

4
SNO- Content

1 Preliminary pages

2 Chapter 1 - Introduction

3 Chapter 2 – Literature review

4 Chapter 3 – Data analysis and interpretation

5 Chapter 4 – Findings and conclusion

6 Chapter 5 - References and Bibliography

Table of Contents

5
ABSTRACT

Among the given topics I have chosen the financial stock analysis of KPIT TECHNOLOGY

multinational company. The purpose of the research is to find out the growth of the kpit

technology inventory in the recent past. The fundamental meaning of the stock market

and stocks is outlined in it.

Key measures that the organization has adopted in recent times and

the factors that have contributed to Kpit technology stock price surge. And the share price for

the following years and their exit plans for shareholders/investors.

The company is an Indian multinational corporation that provides engineering research and

development services to automotive companies. Known as KPIT, the company is headquartered

in Pune and has development centers in Europe, the US, Japan, and China in addition to India.

The fundamental analysis concludes that the company offers high-quality and timely service to

its customers and expands into the new era of artificial intelligence technology services in

the automotive industry, which also achieves better efficiency with its customer-

oriented services at a lower price than. competitors, which is part of the reason for their profit

growth, which in turn positively affected the share price.

A technical explanation analysis focuses entirely on the growth and stock trends of the stock and

the reasons behind its growth.

The financial statements analysis concludes that

6
CHAPTER 1
Introduction to the topic:

The stock market is a dynamic marketplace where investors buy and sell shares of publicly

traded companies. It serves as a crucial mechanism for companies to raise capital by offering

ownership stakes to investors through initial public offerings (IPOs) and subsequent trading on

stock exchanges.

Investors participate in the stock market intending to generate returns through capital

appreciation and dividends, making investment decisions based on factors such as company

performance, economic indicators, and market trends.

However, the stock market is also subject to volatility and risk, influenced by factors ranging

from company-specific news to global economic events. Successful participation in the stock

market often requires a combination of thorough research, risk management, and a long-term

investment strategy.

In stock markets, stocks are traded as ownership in a company. The objective of purchasing stock

for investors is to make money through dividends and capital growth.

Several variables, including business performance, prevailing economic conditions, and market

sentiment, affect stock prices. Stock investing entails risk, such as the possibility of money loss

from volatile markets or underperforming companies.

7
Investing in stocks successfully frequently calls for extensive study, diversification, and a long-

term perspective.

KPIT Technologies Limited, commonly known as KPIT, is an Indian multinational corporation

specializing in providing IT consulting and product engineering solutions to businesses across

various industries. Founded in 1990 and headquartered in Pune, India, KPIT has established

itself as a prominent player in the global IT services market, particularly in the automotive,

manufacturing, and energy sectors.

The company offers a wide range of services, including digital transformation, engineering

services, enterprise solutions, and IT consulting, catering to the evolving needs of its diverse

client base. With a focus on innovation and technological advancement, KPIT has built strategic

partnerships with leading technology providers and has a strong emphasis on research and

development.

Leveraging its expertise in areas such as automotive electronics, cybersecurity, and cloud

computing, KPIT has proven itself as a reliable partner for companies that want to navigate the

complexities of the digital age.

As a publicly traded company, KPIT's performance in the stock market reflects its growth

trajectory, market competitiveness, and ability to deliver value to shareholders amidst a rapidly

evolving business landscape.

Objectives of the Study:

1. To understand the stock growth of KPIT Technology

8
2. To know the different reasons for the stock growth by understanding fundamental and

technical analysis

Need for this Study:

Through this study, we were able to get to know the different reasons for the stock growth of KPIT

Technology by understanding the fundamental and technical analysis and how it provided the

shareholders an exit.

Research Methodology:

The process used to collect information and data to make business decisions is called "RESEARCH

METHODOLOGY. The methodology may include publication research, interviews, surveys, and other

research techniques and could include both present and historical information. Types of research include

basic applied descriptive analytical empirical.

Primary Research:

Qualitative Research: KPIT uses this type of research by producing online questionnaires and surveys for

its potential investors to take part in. They look at the responses to see the thoughts and opinions of

different people and put them to use when launching something new

Secondary Research:

KPIT uses secondary research such as previous investors' opinions to improve their stock performance.

They use old information and old data to come up with new ideas for retaining and grabbing new

investors

9
Industry Profile:

Engineering and R&D (ER&D) services are those that augment or manage processes that are associated

with the creation of a product or service, as well as those associated with maximizing the life span and

optimizing the yield associated with a product or asset.

The Engineering Research and Development (ER&D) industry encompasses a broad spectrum of activities

focused on innovation, design, and development across various sectors. Companies in this industry

specialize in providing engineering services and solutions tailored to meet the specific needs of clients,

spanning industries such as automotive, aerospace, telecommunications, healthcare, and consumer

electronics, among others.

ER&D firms typically offer a wide range of services, including product design, prototyping, testing, and

validation, as well as software development, embedded systems engineering, and technology consulting.

These services are crucial for companies looking to stay competitive in rapidly evolving markets, enabling

them to bring new products to market faster, improve product quality, and enhance overall efficiency.

10
The ER&D industry

plays a vital role in

driving technological

innovation and

economic growth

globally, fostering

collaboration

between companies,

research institutions,

and government agencies. With advancements in areas such as artificial intelligence, the internet of

Things (IoT), and renewable energy, the demand for ER&D services continues to grow, presenting

opportunities for companies to innovate and expand their offerings to meet the evolving needs of clients

in an increasingly digital and interconnected world.

11
Company Profile:

KPIT Technologies Limited is an Indian multinational corporation which provides engineering research

and development (ER&D) services to automotive companies. Popularly known as KPIT, the company is

headquartered in Pune and has development centers in Europe, the USA, Japan, and China, apart from

India.

12
KPIT has filed 58 patents, published some research papers, and has won several awards for innovation.

KPIT Technologies Limited, commonly known as KPIT, is an Indian multinational corporation specializing

in providing IT consulting and product engineering solutions to businesses worldwide. Established in

1990 and headquartered in Pune, India, KPIT has grown to become a prominent player in the global

engineering and technology services industry. The company's primary focus areas include automotive

engineering, manufacturing, and mobility solutions, catering to clients in diverse sectors such as

automotive, aerospace, energy, and utilities.

With a strong emphasis on innovation and sustainability, KPIT has developed expertise in emerging

technologies such as artificial intelligence, machine learning, and connected vehicles. Leveraging its

extensive domain knowledge and strategic partnerships with leading technology providers, KPIT delivers

cutting-edge solutions to address the complex challenges faced by its clients in today's digital landscape.

The company's commitment to research and development is underscored by its investment in innovation

labs and centers of excellence, fostering a culture of continuous learning and exploration.

KPIT's success in the market is reflected in its track record of delivering value to clients, driving

operational excellence, and maintaining a robust financial performance. As a publicly traded company,

KPIT's stock performance reflects investor confidence in its growth prospects, market competitiveness,

and ability to capitalize on emerging opportunities. With a global footprint and a strong focus on

customer-centricity, KPIT is poised to continue its trajectory of growth and innovation in the ever-

evolving ER&D industry.

13
CHAPTER TWO

LITERATURE REVIEW

14
Fundamental Analysis of KPIT Technologies-

Let's begin the fundamental analysis of KPIT Technologies by understanding its

product offering, which is specifically tailored to the automotive industry. After that, we learn

about the industry in which the company operates. Next, we move to the financial situation of the

stock and the research ends with a summary of highlights and future plans.

KEY METRICS-

Company Overview

KPIT Technologies was cofounded in 1990 by Ravi Pandit, Kishor Patil, and Sachin Tikekear.

Over the years, it has become a leading software company with an international presence

The company works with leading automakers and Tier 1 players by providing software

development services and participating in software-defined vehicle manufacturing.

15
More than 7,200 employees worldwide help automotive companies implement new generations

of mobility technologies. KPIT's integrated product offering includes prototype development in

the areas of conventional electronics, autonomous driving, advanced driving assistance systems,

and software development.

In expansion to this, its wide suite of cloud-based arrangements for brilliant cockpits, associated

vehicles, cloud and analytics, and diagnostics empowers the company to supply end-to-end

arrangements within the car and portability space. The auto-tech company works with 7 building

centers over the globe. More than 25 OEMs and level 1 vital accomplices believe in KPIT for its

75+ stages, apparatuses, and quickening agents. we got a great understanding of the business and

scale of operations of the company. Within the other segment, we’ll learn from where it wins

incomes for our crucial examination of KPIT Innovations.

Topographical Segments-

Americas and UK and Europe each contribute generally 40% of the incomes of

KPIT whereas the adjusted 20% of salary accumulates from the rest of the world. The

table underneath presents the share of distinctive topographical portions within the income of the

company for the final two fiscals.

Geography 2023 2022 2021

America TBA 39 42

UK & Europe TBA 40 41

Rest of the world TBA 21 17

(Figures in %)

16
Industry Overview-

The global automotive market grew slowly at a CAGR of 3.6% over the last five years. In

the years to come, the development is anticipated to decrease to an annualized rate of 2% by

2030 because of car-sharing, e-hailing, and an assortment of other components.

In differentiation to the showcase as an entire, EV (electric vehicles) sub-segment has

been developing at a quick pace. For occasion, EV deals multiplied to 4.6 million units within

the calendar year 2021. Even though the car industry has been a moderate mover,

the selection of innovation to construct software-defined vehicles (SDVs) has taken

pace. There's a common uptrend in Connectivity, Autonomous,

Shared versatility and Electrification (CASE), and centralized design for making electronic

terminals of vehicles that can be ceaselessly updated. Along with these advancements,

the car program (SW) and electrical and electronic components (E/E) advertise is anticipated to

rise at a CAGR of 7% from $ 238 billion to $ 469 billion amid the 2020 and 2030 periods.

In addition, software applications, operating systems, and peripherals in the automotive industry

are expected to grow at a rate of more than 11% per year, as major OEMs drive digitization and

expand investments in this sector. of Technology,

KPIT TECHNOLOGIES FINANCIALS- (Revenue & profit)

KPIT Technologies reported a net profit of Rs 276 crore and revenue of Rs 2,432 crore in

FY22. The company is yet to report Q4FY23 and full-year FY23 results. Additionally, this is

down on the trailing twelve months (TTM) from the quarter that ended December 2022, when

revenue and profit rose to Rs 356 crore on revenue of Rs 2,999 crore.

Fiscal Year Operating Revenue Net Profit

17
2023 TBA TBA

2022 2,432 276

2021 2,036 147

2020 2,156 148

2019 641 55

(figures in Cr)

3,000

2,500 2,432
2,156
2,036
2,000

1,500

1,000
641
500
276
147 148
55
0
2022 2021 2020 2019

Operating Revenue TBA Net Profit TBA

Overall, the bottom line and top line are that both the figures have been on an uptrend, as shown

in the above table.

Future Plans of KPIT Technology-

18
1. KPIT Tech. agreed to acquire a majority stake in Path Partner, a high-tech product design

and research and development company.

2. In addition, the company acquired 25% of software and hardware provider Future

Mobility Solutions (FMS). includes development services in autonomous driving, ADAS,

vehicle safety and other areas.

3. In addition, it also bought 4 units from Technia Group last year for a total of 640 million

rupees. The companies are pioneers in production-ready system prototype technology for

the automotive industry.

HDFC Take/Review on KPIT Technology-

KPIT Technologies Ltd (KPIT) expects significant improvement in revenue, led by new deal

wins and an increase in offshore billing. The company derives most of its revenue (~70%) from

innovative technology areas such as Advanced Driver Assistant Systems (ADAS), EV,

powertrain, and infotainment, where we believe the opportunity size is quite large. With huge

innovations in electric vehicles and ADAS, we further believe the market opportunity is large

enough for multiple vendors to coexist and grow. As per the management, its revenue growth and

margin improvement will continue in Q4FY21 and beyond.

The automotive and mobility industry is prioritizing investments in new-age technologies and

KPIT is at the forefront of these. Growth will be driven by electric powertrains and autonomous

vehicles (AV) within Europe and Asia. KPIT is confident of sustaining its profitable growth

momentum, going forward. Higher utilization, pyramid rationalization, and cost optimization

would help sustain strong revenue and profitability growth.

19
Moreover, the company plans to launch more products, which would contribute to growth ahead.

With efficiencies in revenue growth and operations, the company’s operating and PAT margins

are likely to improve further. The mobility industry could be an important growth engine in the

future. We could expect more demand for personal vehicles, safer vehicles, and smart-connected

vehicles. US President Joe Biden’s plans to replace the government vehicle fleet with electric

vehicles will be one of more such opportunities in the US; we believe there is tremendous focus

on electric vehicles, especially in the US and Europe. Over the past 15+ years, KPIT has invested

in various technologies for automotive companies and it will continue to maintain its leadership

position in these areas. The company is positioned well in developing platforms and software

integration with regard to mobility. Also, the increased focus on electric vehicles, especially in

the US and Europe, is creating new growth opportunities for the automotive sector as a whole.

AXIS Securities take/review on KPIT technology-

Financial Performance-
KPIT Technologies Ltd. (KPIT)'s Q3 2024 revenue was Rs 1,257cr, up 4.8% QoQ and 37%

YoY (according to CC), exceeding our expectations. The company's operating profit was Rs

209cr, which shows an encouraging 9% quarterly growth. It also exceeded our

expectations. The company's operating profit margins increased by 60 basis points to 21

percent, supported by strong volume growth and a favorable cash mix, which is

commendable. The company's Q24 net profit was 155 Cr, which means 10% growth on a QoQ

basis.

20
CMP(Rs) 1456

Upside/Downside 20%

High/Low(Rs) 1,640/688

Market cap(Cr) 39,983

No of shares(Cr) 3,943,740

Outlook-
From a long-term perspective, we believe KPIT is well-placed to encourage growth, given its

multiple long-term contracts with the world’s leading brands. Its improved revenue visibility

gives us confidence in its business growth moving forward. We believe that KPIT has strong

client engagement and the ability to deliver its technical expertise. We also expect the company

to prove itself as one of the fastest-growing companies in Indian IT services moving forward.

Valuation & Recommendation –

We assign a 47x P/E multiple to its FY26E earnings of Rs 37.1/share to arrive at a TP of Rs

1,750/share, implying an upside of 20% from the CMP. Hence, we recommend a BUY rating on

the stock.

21
KEY Highlights-

1. Medium-term demand environment strength:

The UK is seeing more cost-optimization deals with quicker decision-making. Strong execution

skills and rising demand for ER&D services are enabling KPIT to expand with faster revenue

growth momentum. Additionally, the management assured that they will continue to grow in the

long run thanks to a healthy transaction pipeline.

2.  Widespread vertical expansion:

The passenger car vertical showed strong execution, growing by 6.2% QoQ. The management

has faith that the growth trend will continue in the foreseeable future.

The QoQ decline in Commercial Vehicle was 10.9%. To harvest additional business and increase

client engagement, the company is concentrating on its top 25 clients. Quarterly, these clients'

strategic revenue increased by 3.9%.

Additionally, client concentration grew, rising from 84% in Q2FY24 to 85% in Q3FY24.

22
3. Robust Services mix:

Of the services offered, feature development and integration services accounted for 90% of

revenue and had a robust 3.8% QoQ growth. While architecture and middleware consultancy

(29% of sales) continues to show a degrowth of 6.1% QoQ, cloud-based linked services (26% of

revenue) continue to show robust growth of 9% QoQ.

TECHNICAL ANALYSIS OF KPIT TECHNOLOGY-

KPIT - Strong consolidation breakout and Cup-handle pattern.

23
The above information is regarding the technical analysis of the stock and the

individual's forecast for the future is provided by an equity trend analyst on

Kpit Technology. The stock has a buy rating from the analyst, who believes it

is in an uptrend.

PRICE CHART OF KPIT TECHNOLOGY-

The above price chart is taken on the basis of YOY

24
The above statement represents an analyst's assessment of

KPIT Technology stock for the future. According to his

stock forecast, the stock is bullish and now experiencing an

increase, making it an ideal moment to purchase.

25
CHAPTER THREE

DATA ANALYSIS AND

INTERPRETATION

26
Secondary Data Analysis:

In secondary data analysis, research was done from various sources and websites google to gain

good information about the company from official websites. This information is taken from

renowned authors and professionals who have studied about the company and written their

perspectives.

FINANCIAL STATEMENTS-

Profit and Loss Account:

A profit and loss statement illustrates a company's revenue and expenses for a specific time

period, usually one month or consolidated months across a year. These data indicate whether

your business produced a profit or a loss during that time period. Profit and loss statements

reveal your entire income and expenses, as well as whether your company made more money

than it spent on operating costs. If this is the case, your business has made a profit. The profit and

loss account shows how profitable a business is. It cannot, for example, indicate whether you are

running out of funds as you grow inventory. A balance sheet is required to gain this level of

knowledge.

Balance Sheet:

A balance sheet is a type of financial statement that shows the assets, liabilities, and shareholder

equity of a business at a certain point in time. The foundation for calculating investor rates of

return and assessing a company's capital structure is its balance sheet. The balance sheet, to put it

briefly, is a financial statement that shows a company's assets and liabilities as well as the

27
amount of money invested by shareholders. Financial ratio calculations and fundamental analysis

can be performed on balance sheets in conjunction with other significant financial statements.

FINANCIAL STATEMENT ANALYSIS

Ratio Analysis:

Ratio analysis is a mathematical technique that examines financial accounts like the income

statement and balance sheet to provide insight into a company's liquidity, operational

effectiveness, and profitability. A key component of fundamental equity analysis is ratio analysis.

PROFIT AND LOSS ACCOUNT OF KPIT TECHNOLOGY

PROFIT & LOSS ACCOUNT OF KPIT MAR 23 MAR 22 MAR MAR MAR
TECHNOLOGIES (in Rs. Cr.) 21 20 19

12 mths 12 mths 12 12 12
mths mths mths

INCOME

REVENUE FROM OPERATIONS 1,514.80 1,180.9 802.85 955.25 230.3

[GROSS] 9 0

Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 0.00 0.00

REVENUE FROM OPERATIONS [NET] 1,514.80 1,180.9 802.85 955.25 230.3

9 0

TOTAL OPERATING REVENUES 1,516.43 1,180.9 802.85 955.25 230.3

9 0

Other Income 42.36 77.27 17.59 23.19 35.78

TOTAL REVENUE 1,558.79 1,258.2 820.44 978.44 266.0

28
6 8

EXPENSES

Cost Of Materials Consumed 0.00 0.00 0.05 0.12 0.23

Purchase Of Stock-In Trade 0.00 0.00 0.00 0.00 0.00

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

Changes In Inventories Of FG, WIP And 0.00 0.00 0.00 0.00 0.00
Stock-In Trade

Employee Benefit Expenses 887.33 704.81 487.57 532.49 104.0

7

Finance Costs 14.68 10.86 8.64 15.11 6.13

Depreciation And Amortization Expenses 90.52 81.58 91.11 83.70 15.77

Other Expenses 200.70 184.45 136.92 145.97 48.32

TOTAL EXPENSES 1,193.23 981.69 724.29 777.40 174.5

1

PROFIT/LOSS BEFORE EXCEPTIONAL, 365.55 276.57 96.15 201.04 91.56

EXTRAORDINARY ITEMS AND TAX

Exceptional Items 0.00 0.00 3.20 -3.66 -10.14

PROFIT/LOSS BEFORE TAX 365.55 276.57 99.35 197.38 81.42

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 85.77 51.15 19.35 46.90 11.79

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax -0.38 -12.70 -13.53 -27.97 -4.81

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00

29
TOTAL TAX EXPENSES 85.39 38.45 5.83 18.93 6.98

PROFIT/LOSS AFTER TAX AND 280.16 238.12 93.53 178.45 74.45

BEFORE EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING 280.16 238.12 93.53 178.45 74.45

OPERATIONS

PROFIT/LOSS FOR THE PERIOD 280.16 238.12 93.53 178.45 74.45

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 10.37 8.83 3.48 6.64 11.23

Diluted EPS (Rs.) 10.26 8.73 3.46 6.62 11.20

VALUE OF IMPORTED AND

INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS

Imported Raw Materials 0.00 0.00 0.00 0.00 0.00

Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00

STORES, SPARES AND LOOSE TOOLS

Imported Stores and Spares 0.00 0.00 0.00 0.00 0.00

Indigenous Stores and Spares 0.00 0.00 0.00 0.00 0.00

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 89.16 74.13 0.00 47.02 0.00

Tax On Dividend 0.00 0.00 0.00 9.86 0.00

Equity Dividend Rate (%) 41.00 31.00 15.00 10.00 8.00

30
Interpretation:

I interpret that, KPIT TECHNOLOGY's total revenue of a company is 266 crores in 2019,

978.44 crores in 2020, 820.44crores in 2021, 1258.26crores in 2022 and 1558.79 crores in

[Link] the total revenue of a company. Again, the company’s revenue has been increased from

2019 to 2020, the total revenue is also increased from 2020 to [Link] 2022 the total revenue of

KPIT TECHNOLOGY has increased at a high rate when compared to the total revenue of

[Link], the revenue of a company is increased in 2023 when compared to 2022.

From two years the total revenue of KPIT TECHNOLOGY is increasing at a high rate which is a

positive side for the company.

The total expenses of KPIT TECHNOLOGY in 2019 are 174.51 crores, 777.40 crores in 2020,

724.29 crores in 2021, 981.69 crores in 2022 and 1193. 23 crores in 2023. From 2019 to 2020

expenses of a company is increased. Again, total expenses of a company are increasing in 2021

when compared to [Link] the year 2022 the total expenses of a company has been increased at a

peak rate when compared to [Link], total expenses of a company has been increased at high

rate in 2023 when compared to 2022. Here, when the

total expenses of a company decreasing, total revenue of a company is decreasing. When total

expenses of a company increasing, total revenue of a company is also increasing. Both the

Revenue and Expenses are related to each other. Profit before tax is 481.42 crores in 2019,

197.38 crores in 2020, 99.35 crores in 2021, 276.57 crores in 2022 and366.55 crores in 2023.

31
Profit before tax is increased from 2019 to 2020, Again profit before tax has increased from 2020

to [Link] the year 2022 the profit/loss before tax is increased at a high rate when compared to

2020. Again, in the year 2023 the profit before tax of a company has increased at a high rate.

The net profit of a company had increased from 2019 to [Link] the net profit of a company

had increased from 2020 to [Link] the year 2022 the net profit of a company is increased at a

high rate. Again, In the year 2023 the net profit of a company is increased at a high rate.

Overall, the profitability of a company is good.

BALANCE SHEET OF KPIT TECHNOLOGY

BALANCE SHEET OF KPIT MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

TECHNOLOGIES (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 270.35 270.02 269.04 268.88 268.50

TOTAL SHARE CAPITAL 270.35 270.02 269.04 268.88 268.50

Reserves and Surplus 1,113.3 948.83 779.22 755.86 654.97

8

TOTAL RESERVES AND SURPLUS 1,113.3 948.83 779.22 755.86 654.97

8

TOTAL SHAREHOLDERS FUNDS 1,383.7 1,218.84 1,048.27 1,024.74 923.47

32
3

NON-CURRENT LIABILITIES

Long Term Borrowings 0.23 1.87 2.40 2.97 37.09

Deferred Tax Liabilities [Net] 0.00 0.00 0.00 0.00 0.00

Other Long Term Liabilities 52.44 138.39 59.03 76.17 0.00

Long Term Provisions 31.74 20.25 9.56 11.91 19.98

TOTAL NON-CURRENT 84.41 160.50 71.00 91.05 57.08

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 0.38 0.72 0.00 16.61 59.97

Trade Payables 50.99 57.92 48.50 35.44 49.43

Other Current Liabilities 274.40 246.76 135.53 142.70 143.09

Short Term Provisions 27.45 39.47 16.47 14.79 5.71

TOTAL CURRENT LIABILITIES 353.22 344.86 200.49 209.53 258.20

TOTAL CAPITAL AND LIABILITIES 1,821.3 1,724.20 1,319.76 1,325.33 1,238.7

5 5

ASSETS

NON-CURRENT ASSETS

Tangible Assets 255.29 275.06 253.32 302.48 238.05

Intangible Assets 24.85 24.55 25.97 44.87 59.47

Capital Work-In-Progress 4.88 0.23 11.75 4.95 0.10

Other Assets 0.00 0.00 0.00 0.00 0.00

33
FIXED ASSETS 311.89 299.84 291.33 352.32 298.03

Non-Current Investments 809.15 449.15 277.17 408.79 372.67

Deferred Tax Assets [Net] 55.69 59.90 45.31 34.00 0.18

Long Term Loans And Advances 0.00 0.00 4.01 71.48 14.69

Other Non-Current Assets 46.77 50.10 16.87 17.14 3.06

TOTAL NON-CURRENT ASSETS 353.22 344.86 200.49 209.53 258.20

CURRENT ASSETS

Current Investments 35.18 100.45 126.16 8.22 48.71

Inventories 0.00 0.00 0.00 0.00 0.92

Trade Receivables 424.52 266.06 163.71 298.00 219.23

Cash And Cash Equivalents 94.96 448.14 308.67 45.71 38.99

Short Term Loans and Advances 0.00 0.00 6.12 2.00 11.27

OtherCurrentAssets 43.19 50.57 80.41 87.65 231.01

TOTAL CURRENT ASSETS 597.85 865.22 685.07 441.59 550.13

TOTAL ASSETS 1,821.3 1,724.20 1,319.76 1,325.33 1,238.7

5 5

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 15.97 3.01 39.01 47.54 30.30

CIF VALUE OF IMPORTS

34
Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN
EXCHANGE

Expenditure In Foreign Currency 29.10 8.73 16.76 20.38 3.55

REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign -- -- -- -- --

Currency

EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods -- -- -- -- --

Other Earnings 1,378.9 1,103.57 699.35 845.15 209.13

0

BONUS DETAILS

Bonus Equity Share Capital -- -- -- -- --

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted -- -- -- -- --

Market Value

Non-Current Investments Unquoted 809.15 449.15 277.17 408.79 372.67

Book Value

Interpretation:

35
I interpret that, Total shareholder funds of kpit technology are 923.47crores in 2019 1024.74 crores in
2020 1048.27 crores in 2021 1218.84 crores in 2022 and 138.73 crores in [Link] shareholder funds of
kpit technology is increased from 2019 to [Link] the year 2021 the shareholder funds of kpit
technology have been increased at a low rate. In the year 2022 the shareholder funds of kpit technology
have been increased when compared to 2021. But, in the year 2023 the shareholder funds of a company
have been increased at a high rate when compared 2022. Company is trying to increase their
shareholder funds.

Total non-current liabilities of kpit technology are 57.08 crores in 91.05 crores in 2020, 71 crores in
2021, 160.50 crores in 2022, 84.41 crores in 2023. The non-current liabilities of a kpit technology is
increased from 2019 to [Link] the year 2020 the non-current liabilities of kpit technology has been
decreased from 2020 to 2021. In the year 2022 non-current liabilities of kpit technology has been
increased at a high rate. In the year 2023 the non-current liabilities of a company are decreased when
compared to 2022. It is beneficial for the company, because non-current liabilities of a company are
getting decreased. Total current liabilities of kpit technology are 258.20 crores in 2019, 209.53 crores in
2020, 200.49 crores in 2021, 344.86 crores in 2022 and 353.22 crores in 2023.

The current liabilities kpit technology is decreased from 2019 to [Link] the year 2021 the current
liabilities of kpit technology have been decreased when compared to 2020. current liabilities of kpit
technology have been increased in the year 2022 when compared to 2021. In the year 2023 the current
liabilities of a company had increased at a high rate.

The total non-current assets of kpit technology are 258.20 crores in 2019, 209.53 crores in 2020 200.49
crores in 2021, 344.86 crores in 2022 and 353.22 crores in 2023. The total non-current assets of a
company have been decreased from 2019 to 2020. In the year 2021 the non-current assets of kpit
technology have been decreased when compared to 2020. And, in the year 2022 the non-current assets
of a company have been increased when compared to 2021. Again, in the year 2023 the non-current
assets of a company have been increased when compared to [Link], non-current assets of kpit
technology is getting increased from 2022.

The total current assets of kpit technology are 550.13 crores in 2019, 441.59 crores in 2020, 685.07
crores in 2021, 865.22 crores in 2022 and 597.85 crores in 2023. The total current assets kpit technology
is getting decreased in first year comparison and increased subsequently from 2019,2020,2021,2022 and
[Link] is very much beneficial to the kpit technology.

The total assets of kpit technology is increased from 2019 to [Link] the year 2021 the total assets of
kpit technology is decreased when compared to 2020. In the year 2022 the total assets of a company
have been increased at a high rate when compared to 2021. Again, the total assets of a company have
been increased at high rate when compared to 2022.

Overall, the financial Position of a company is very good

RATIO ANALYSIS OF KPIT TECHNOLOGY-

36
37
KEY FINANCIAL MAR 23 MAR 22 MAR 21 MAR 20 MAR
RATIOS OF KPIT 19
TECHNOLOGIES (in Rs.
Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 10.37 8.83 3.48 6.64 11.23

Diluted EPS (Rs.) 10.26 8.73 3.46 6.62 11.20

Cash EPS (Rs.) 13.71 11.84 6.86 9.75 3.36

Book Value 51.18 45.14 38.96 38.11 34.39

[ExclRevalReserve]/Shar
e (Rs.)

Book Value 51.18 45.14 38.96 38.11 34.39

[InclRevalReserve]/Shar
e (Rs.)

Dividend / Share(Rs.) 4.10 3.10 1.50 1.00 0.75

Revenue from 56.09 43.74 29.84 35.53 8.58

Operations/Share (Rs.)

PBDIT/Share (Rs.) 17.41 13.67 7.28 11.15 4.23

PBIT/Share (Rs.) 14.06 10.64 3.89 8.04 3.64

PBT/Share (Rs.) 13.52 10.24 3.69 7.34 3.03

Net Profit/Share (Rs.) 10.36 8.82 3.48 6.64 2.77

PROFITABILITY
RATIOS

PBDIT Margin (%) 31.04 31.24 24.40 31.38 49.26

PBIT Margin (%) 25.07 24.33 13.05 22.62 42.41

PBT Margin (%) 24.10 23.41 12.37 20.66 35.35

38
Net Profit Margin (%) 18.47 20.16 11.64 18.68 32.32

Return on Net worth / 20.24 19.53 8.92 17.41 8.06

Equity (%)

Return on Capital 25.89 20.83 9.36 19.37 9.96

Employed (%)

Return on Assets (%) 15.38 13.81 7.08 13.46 6.00

Total Debt/Equity (X) 0.00 0.00 0.00 0.02 0.11

Asset Turnover Ratio (%) 0.86 0.78 60.83 72.07 18.59

LIQUIDITY RATIOS

Current Ratio (X) 1.69 2.51 3.42 2.11 2.13

Quick Ratio (X) 1.69 2.51 3.42 2.11 2.13

Inventory Turnover Ratio 0.00 0.00 0.00 955,250.0 250.8

(X) 0 7

Dividend Payout Ratio 31.82 31.13 0.00 26.35 0.00

(NP) (%)

Dividend Payout Ratio 24.05 23.18 0.00 17.93 0.00

(CP) (%)

Earnings Retention Ratio 68.18 68.87 0.00 73.65 0.00

(%)

Cash Earnings Retention 75.95 76.82 0.00 82.07 0.00

Ratio (%)

VALUATION RATIOS

Enterprise Value (Cr.) 24,912.6 15,781.1 4,455.8 924.36 0.00

5 1 1

EV/Net Operating 16.43 13.36 5.55 0.97 0.00

Revenue (X)

39
EV/EBITDA (X) 52.92 42.77 22.75 3.08 0.00

MarketCap/Net 16.49 13.74 5.93 1.00 0.00

Operating Revenue (X)

Retention Ratios (%) 68.17 68.86 0.00 73.64 0.00

Price/BV (X) 18.07 13.31 4.54 0.93 0.00

Price/Net Operating 16.49 13.74 5.93 1.00 0.00

Revenue

Earnings Yield 0.01 0.01 0.02 0.19 0.00

Interpretation:

I interpret that, In Investment Valuation Ratios, the face value of a company is 10 from 2019,

2020, 2021, 2022 and 2023. Dividend Per Share is 0.75 and 1.00 for 2019 and 2020 years, then

dividend per share is increased to 1.50 in 2021, Then dividend per share is increased to 3.1 in

2022, then dividend per share is increased to 4.1 in 2023.

Operating Profit Per Share is 8.58 in 2019, then operating profit per share is increased to 35.53

in 2020, then operating profit share is decreased to 29.84 in 2021, then operating profit per share

is increased to 43.74 in 2022, then operating profit per share is increased to 56.09 in 2023.

Net Operating Profit Per Share is 2.77 in 2019, then net operating profit per share is increased to

6.64, then net operating profit per share is decreased to 3.48 in 2021, then net operating profit per

share is increased to 8.82 in 2022, then net operating profit per share is increased to 10.36.

40
In Profitability Ratios, Gross Profit Before Margin (percent) is 49.26 in 2019, then it is decreased

to 31.38 in 2020, then it is decreased to 24.4 in 2021, then it is increased to 31.24 in 2022, then it

is decreased to 31.04 in 2023.

Net Profit Margin (percent) is 32.32 in 2019, then it is decreased to 18.67 in 2020, then it is

decreased to 11.64 in 2021, then it is increased to 20.64 in 2022, then it is decreased to 18.46 in

2023.

Return on Capital Employed (percent) is 9.96 in 2019, then it is increased to 19.37 in 2020, then

it is decreased to 9.35 in 2021, then it is increased to 20.83 in 2022, then it is increased to 25.89

in 2023. Return on Net Worth (percent) is 8.60 in 2019, then it is increased to 19.37 in 2020, then

it is decreased to 8.92 in 2021, then it is increased to 19.53 in 2022, then it is increased to 20.24

in 2023.

Return on Assets Excluding Revaluations is 6.00 in 2019, then it is increased to 13.46 in 2020,

then it is 7.08 increased to 13.81 in 2021, then it is decreased to 15.38 in 2022, then it is

increased to 15.38 in 2023. Return on Assets Including Revaluations are also same like Return

on Assets Excluding Revaluations ratios

In Liquidity and Solvency Ratios, Current Ratio is 2.13 in 2019, then it is decreased to 2.11

2020, then it is increased to 3.42 in 2021, then it is decreased to 2.51, then it is decreased to

1.69 .

Quick Ratio is 2.13in 2019, then it is decreased to 2.11 in 2020, then it is increased to 3.42 in

2021, then it is decreased to 2.51 in 2022, then it is increased to 1.69 in 2023.

Dividend Payout Ratio Cash Profit is 0 in 2019, then it is increased to 17.93 in 2020, then it is

decreased to 0 in 2021, then it is decreased to 23.18 in 2022, then it is increased to 24.05 in 2023.

41
Earning Retention Ratio is 0 in 2019, then it is Increased to 73.65 in 2020, then it is decreased to

0 in 2021, then it is increased to 68.87 in 2022, then it is decreased to 68.18 in 2023.

Cash Earning Retention Ratio is 0 in 2019, then it is decreased to 82.07 in 2020, then it is

decreased to 0 in 2021, then it is increased to 76.82 in 2022, then it is decreased to 75.95 in 2023.

Swot analysis

Strengths –

 Mutual funds increased their holdings last month

 Consistently highest return in 5 years - Nifty500

 Company with TTM EPS growth of 413.9% of Nifty 500 return in 5.4 years

With latest growth, annual earnings growth is higher than sector performance

. 8 quarters 77.1% Nifty 500 return in 4.5 years

 Efficient use of capital for profit - RoCE has improved in last 2 years - 16.8% Nifty

500 return in 1.9 years

 Effective use of shareholder fund - Return on equity (ROE) is YOY improved over

the last 2 years

 Net Profit Growth with Growing Profit Margin (QoQ)

 Quarterly Net Profit Growth with Growing Profit Margin (YoY)

 Low Debt Company

 Growing Revenue Every Quarter for the Last 4 Quarters

 Running Quarterly for the Last 4 Quarter

 Company Able to generate Net Cash Flow - Improved net cash flow in last 2 years

42
 Annual net profit improved in last 2 years

 Book value of share improved in last 2 years

 Company without promoter bond

 FII/FPI or Institutions increasing investment

 Endowment Capital Increased investment in the last two months

weakness-

 PE greater than the sector PE

 MFs reduced their holdings in the most recent quarter, yielding over 6.4 years of 190%

returns.

 Insufficient cash flow from core operations—declining cash flow from operations over

the past two years—and 25.7% returns for the Nifty 500 over a 1.9-year period

 Sell Zone: Based on days traded at the current PE and P/BV, stocks in the sell zone are

underperforming their industry price change throughout the quarter.

Opportunities-

 Businesses with Future Outcomes

 In the previous three months, brokers raised their target price or recommendation. Nifty

500 returns over a 0.3-year period were 8.4%.

43
 Comparative Overperformance over a Month Against Industry

High-End Artists (DVM)102.3% yields over a period of 5.4 years

 PEG is less than that of Industry

High Momentum (above 50 for Technical Scores)319.5% returns over 5.1 years for the

Nifty 500

 Screener for Results: stocks whose share prices are rising ahead of expected results

Comparative Overperformance over a Month Against Industry

largest holdings of FII stocks32.8% yields over a period of 6.4 years

 Maximum Rebound from 52-Week Minimum

Threats-

 Companies whose expenses are rising YoY for extended-duration projects

 Elevated PE (> 40)

 Growing Non-Core Income Trend

 Top Losers

 Stocks were sold by insiders.

44
SWOT ANALYSIS

THREATS
OP-
POR-
TU-
NITES STRE
NGHT
S

WEAKNESS

45
CHAPTER FOUR

FINDINGS AND
CONCLUSION

46
Findings:
1. Despite fluctuations throughout the years, the company has been making money from its

activities.

2. The business has been increasing the amount of money it invests in its operations through

capital expenditures, acquisitions, and investments in other businesses.

3. The company has raised more money through finance operations in the past few years.

These activities may include debt financing, equity financing, or other financing

agreements.

4. The net cash flow is showing a declining trend.

5. The business took out more loans to fund its operations during the first several years.

6. The assets of the company have grown over time.

7. There was an increasing tendency in the company's profitability.

8. The company has made significant expenditures in expansion opportunities, yielding

noteworthy Profits

9. The analysts provided a buy rating on the company for the future growth

47
My suggestions-
1. KPIT technology is positioned optimally for new investors

2. the company has received excellent buy ratings from equities analysts.

3. Because of its fundamentals, this stock is one that investors should include in their

portfolio.

48
Conclusion-
The company's expansion in recent years appears to have been driven by heavy investments

in fixed assets and financial assets, based on the financial analysis presented. On the other

hand, it has also been accruing greater debt, mainly from borrowing. This implies that the

business should concentrate on maintaining a balance between its financing activities and

investments to make sure it has enough money to pay its debts and fulfil its obligations. In

order to satisfy its operational, investing, and financing needs, the company should also

concentrate on enhancing its cash flow from operating activities and strive to continually

create positive cash flow. This can be accomplished by increasing profitability, efficiently

managing working capital, as well as debt reduction. To increase its reserves and solidify its

financial position, the business should also think about keeping more of its profits. Despite

variations in the company's financial ratios throughout time, it has demonstrated the ability

to promptly convert its assets into cash and obtain payments from clients while making

payments supplies with greater slowness.

In conclusion, kpit technology is a stock with its core principles, so the stock should

definitely be included in portfolios. The company can become a major leader in software

development services in the field of creating computer-defined vehicles such as AI in the

future. It is currently booming. Later, if the company performs well, the stock price will also

increase. The company has a high moat compared to its competitors.

49
CHAPTER-5:

REFERENCES AND
BIBLIOGRAPHY

50
References/Bibliography:

1)Money control website.

2)Collected information from company`s original websites.

3)Newspaper Articles and Magazines.

51