KPIT Technologies Limited
KPIT Technologies Limited Fundamental Analysis
KPIT Technologies Limited (KPITTECH.BO) shows strong financial fundamentals with a PE ratio of 24.74, profit margin of 11.46%, and ROE of 22.92%. The company generates $62.7B in annual revenue with strong year-over-year growth of 19.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KPITTECH.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKPITTECH.BO demonstrates superior asset utilization.
Valuation Score
ExcellentKPITTECH.BO trades at attractive valuation levels.
Growth Score
ExcellentKPITTECH.BO delivers strong and consistent growth momentum.
Financial Health Score
ModerateKPITTECH.BO shows balanced financial health with some risks.
Profitability Score
ModerateKPITTECH.BO maintains healthy but balanced margins.
Key Financial Metrics
Is KPITTECH.BO Expensive or Cheap?
P/E Ratio
KPITTECH.BO trades at 24.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KPITTECH.BO's PEG of -3.54 indicates potential undervaluation.
Price to Book
The market values KPIT Technologies Limited at 5.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.35 times EBITDA. This signals the market has high growth expectations.
How Well Does KPITTECH.BO Make Money?
Net Profit Margin
For every $100 in sales, KPIT Technologies Limited keeps $11.46 as profit after all expenses.
Operating Margin
Core operations generate 28.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.92 in profit for every $100 of shareholder equity.
ROA
KPIT Technologies Limited generates $10.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KPIT Technologies Limited generates limited operating cash flow of $3.90B, signaling weaker underlying cash strength.
Free Cash Flow
KPIT Technologies Limited produces free cash flow of $3.13B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.52 in free cash annually.
FCF Yield
KPITTECH.BO converts 1.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How KPITTECH.BO Stacks Against Its Sector Peers
| Metric | KPITTECH.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.74 | 34.49 | Better (Cheaper) |
| ROE | 22.92% | 1124.00% | Weak |
| Net Margin | 11.46% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 5.81 | Weak Liquidity |
| ROA | 10.37% | -308769.00% (disorted) | Strong |
KPITTECH.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KPIT Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
167.31%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
461.24%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
252.63%
Industry Style: Growth, Innovation, High Beta
High Growth