Shares of KPIT Technologies Ltd. jumped to a record after the automotive software services firm signed a pact to offer solutions for smart charging of electric vehicles.
KPIT teamed up with dSPACE GmbH to offer comprehensive solutions test suite for smart charging, according to a company statement. The suite the companies have developed will be a combination of KPIT's conformance test libraries and dSPACE's hardware component. "It offers comprehensive testing options for the mobility ecosystem."
KPIT's stock surged nearly 19% after the announcement compared with an almost unchanged Nifty 50. It has risen from a low of Rs 602.05 on Monday to an all-time high of Rs 750 on Friday—a 25% rise.
Goldman Sachs initiated coverage with a 'buy' and a price target of Rs 1,040 on Jan. 5, contributing to the surge.
With electronics becoming a larger part of vehicle cost, KPIT Tech's expertise is likely to find increasing demand, the financial services provider said. “Electronics, which were 27% of vehicle cost in 2010, currently account for around 40% and is poised to reach the 50% mark by 2030,” the report said quoting Deloitte.
KPIT Technologies Chairman Ravi Pandit, in a recent interview with BloombergQuint's Niraj Shah, said he expects to benefit from EV and alternative fuel transition globally, and in India as well.
"Vehicles powered by batteries and hydrogen fuel cells will emerge as India's choice for mobility as the nation focuses on a greener future," he said.
KPIT Tech, the makers of India's first hydrogen fuel cell prototype car, are also working on technology to generate hydrogen via biomass or stored energy from the sun.
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