KPIT Technologies Ltd.
NSE: KPITTECHKPIT Technologies Ltd.: A 30-second snapshot
KPIT Technologies (₹760.05) is an automotive-focused IT company trading 45.34% below its 12-month starting price and 22.9% below its 200-DMA of ₹985.79, though it has recovered 15.35% over the past 3 months. Trailing PE of 32.89x is the highest among six tracked IT peers (peer median approximately 16x) despite a 5-year earnings CAGR of -33.5%, while debt-to-equity of 23.624 is an outlier versus a sector where peers carry D/E below 1. ROE of 19.73% and a 12% 5-year revenue growth rate represent constructive operating metrics against an otherwise stressed valuation and earnings picture.
P/E
32.9
Forward P/E
21.0
ROE
+19.7%
Debt / Equity
23.62
Profit Margin
+9.9%
Div. Yield
+1.1%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
45/100
News
4 headlines · 0 positive · 0 negative
KPIT Technologies Q3 Results 2026 - Find KPIT Technologies Q3 Earnings Result | KPITTECH Q3 results - Mint
Mint
KPIT Technologies Q4 Results 2026 - Find KPIT Technologies Q4 Earnings Result | KPITTECH Q4 results - Mint
Mint
KPIT Tech, Coforge, Persistent, Infosys, HCL Tech: What IT hiring trend suggests; target prices - Business Today
Business Today
KPIT Tech Shares Have Crashed 60% From Its Peak But Can The Stock Finally Rebound? - Trade Brains
Trade Brains
Recent context
- ·Q3 and Q4 FY2026 results coverage from Mint (June 19, 2026) has been flagged in news but without disclosed earnings details; the neutral sentiment across all 4 recent headlines reflects a lack of clear positive or negative news catalysts.
- ·A Business Today article (June 17, 2026) grouped KPIT Tech alongside Coforge, Persistent, Infosys, and HCL Tech in an IT-sector hiring trend and target-price roundup, highlighting the stock's continued inclusion in active analyst coverage of the mid-to-large IT segment.
- ·Trade Brains (May 27, 2026) noted the stock's approximately 60% decline from peak, framing it as a question of whether price correction has run its course; the 21 analysts tracked show a mean rating of null (count available: 21 analysts, no consensus rating on record at run date).
Strengths
- +ROE of 19.73% has remained above 15% in 4 of the available measurement years, with a consistency score of 83, placing it above sector peers Tech Mahindra (16.61%) and Wipro (15.44%).
- +5-year revenue growth of 12% indicates top-line expansion even as earnings were under pressure, suggesting the revenue base has continued to grow through a period of margin stress.
- +FCF was positive in 4 of available years, and the consistency score of 83 reflects a track record of positive cash generation across most of the measurement window.
- +The 3-month price recovery of 15.35% from a deeply depressed base, with RSI at 52.39 (neutral), reflects a stabilisation in price momentum from the longer-term downtrend.
Weaknesses
- −Stock has declined 45.34% over 12 months and remains 46.63% below its 52-week high, trading below the 200-DMA (₹985.79) for an extended period despite the recent 3-month partial recovery.
- −5-year earnings growth of -33.5% contrasts with positive revenue growth, pointing to sustained margin compression; trailing PE of 32.89x prices in a reversal not yet reflected in the earnings track record.
- −Debt-to-equity of 23.624 is anomalously elevated relative to all five IT-sector peers, whose D/E ratios are well below 1; the composition of this figure requires verification to assess solvency implications accurately.
- −KPITTECH ranks last among 6 peers on both PE (highest at 32.89x) and quality score (lowest at 32 vs peer range 40–65), indicating the stock carries the sector group's highest valuation at its lowest measured quality tier.
Open questions
- ?Does the 5-year earnings decline of -33.5% reflect a structural shift in KPIT's margin profile, or is it attributable to a discrete investment cycle (such as R&D ramp or acquisitions) that could normalise?
- ?How is the debt-to-equity of 23.624 composed — what portion represents Ind AS 116 operating lease liabilities versus financial debt — and how does the adjusted net-debt position compare to peers?
- ?Given that KPITTECH is positioned specifically in automotive embedded software (a narrower vertical than generalist IT peers), how does automotive-sector capital expenditure cyclicality affect the interpretation of its revenue and earnings trends?
- ?At what point, if any, would the forward PE of 20.96x become consistent with historical IT-sector re-rating patterns, and what earnings growth rate would be required over the next 3–5 years to justify current price levels relative to peer multiples?
Peer comparison: IT
Ranks 6 of 6 on qualityTechnical state
Current price
₹760.05
SMA 50
₹746.58
SMA 200
₹985.79
RSI (14)
52.4 (neutral)
From 52w high
-46.6%
1Y return
-45.3%
3M return
+15.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highStock is 46.63% below its 52-week high and 22.9% below the 200-DMA (₹985.79), having declined 45.34% over 12 months. Even after a 15.35% partial recovery over the past 3 months, the structural drawdown remains substantial; the stock has traded below the 200-DMA throughout this period.
- high5-year earnings growth of -33.5% stands in contrast to 12% revenue growth over the same period, indicating persistent margin erosion. Trailing PE of 32.89x priced against a deteriorating earnings trajectory implies the market is pricing a sharp recovery not yet evidenced in the historical record.
- highDebt-to-equity of 23.624 is anomalously elevated for an IT-sector company; all five tracked peers carry D/E well below 1. The figure may reflect Ind AS 116 lease liabilities or working-capital facilities, but the composition materially affects solvency interpretation and warrants independent verification.
- mediumKPITTECH ranks 6th of 6 peers on both PE (32.89x vs peer median ~16x) and quality score (32 vs peer range 40–65), carrying the highest valuation and lowest quality rating among all tracked IT-sector comparables.
- mediumDebt trend is classified as rising. ROE exceeded 15% in 4 of available years and FCF was positive in 4 years; the consistency score of 83 reflects an improving but not yet durable multi-year track record.
- lowNews sample totals only 4 articles, all rated neutral, near the sparse threshold; sentiment conclusions from this small corpus carry limited confidence.
Cross-section contradictions
- Forward PE of 20.96x implies analysts are pricing earnings roughly 57% higher than the trailing basis (PE 32.89x), yet the 5-year earnings trajectory shows -33.5% growth — a wide gap between priced-in recovery and the recent fundamental trend.
- News sentiment is entirely neutral across 4 articles while the stock has declined 45.34% over 12 months and remains 46.63% below its 52-week high, suggesting headline coverage has not tracked the magnitude of the price correction.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days