KPIT Technologies Q3 Results Review - Steady, Margins To Maintain Upward Trajectory: Anand Rathi

Anand Rathi Report

KPIT Technologies Ltd.'s maintained its growth trajectory in Q3, with 4.3% Q/Q revenue growth in constant currency. New total contract signed at $ 189 million, with management remaining optimistic on sustained growth in FY25 as well. Book-to-bill was 1.3 times, compared to the trailing twelve months average (1.8 times reported, 1.3 times adjusted for large deals).

The deal pipeline remains strong. The Ebitda margin expanded 56 basis points Q/Q to 20.6%. The revenue growth guidance of 37% plus was reiterated.

KPIT Technologies largely maintain our FY24e/FY25e but raise FY26e ~5% on higher margin and steady depreciation and amortisation expectations.

We raise our target price to Rs 1,730 (from Rs 1,450), 45 times FY26E earning per share. We maintain our 'Buy' rating.

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