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KPIT Technologies, once the darling of auto-tech bulls, is under pressure. The stock, which touched Rs 1,928 earlier this year, has slumped to around Rs 1,324. With auto demand slowing globally, especially in Europe (KPIT’s key market), investors are rethinking if the premium valuation still holds up.
What’s happening?
Since October 2024, KPIT shares are down nearly 40 per cent. In the last week alone, they slipped about 4 per cent as fears of slowing auto demand, high interest rates and margin pressure spooked investors.
What KPIT does
KPIT builds software for cars of the future — think autonomous driving, EV platforms, and digital cockpits. Its clients include top global automakers, and nearly half of its business comes from Europe.
Below is a table summarising its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 38,128 crore |
| P/E ratio | 45.4 |
| P/B ratio | 13.1 |
| ROE | 32 per cent |
| ROCE | 44 per cent |
| EPS | Rs 30.6 |
| Book value | Rs 106.3 |
| Dividend yield | 0.6 per cent |
Value Research Online ratings
- Overall: 4/5
- Quality: 10/10
- Growth: 9/10
- Valuation: 4/10
- Momentum: 4/10
The takeaway
If you like KPIT for its niche and long-term EV play, this dip may look tempting, but the valuation is still rich. On the flip side, if you’re wary of pricey stocks in uncertain times, waiting for a deeper correction could make sense.
Watch its next earnings and global auto trends. Until then, the stock may stay neutral.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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