Fundamental Analysis (NSE: KPIT)

-

 📘 What Is Fundamental Analysis?

Fundamental analysis involves evaluating a company's financial statements, performance metrics, and market position to determine its intrinsic value. The goal is to assess whether the stock is overvalued, undervalued, or fairly priced, guiding investment decisions.

🏢 Company Overview: KPIT Technologies Ltd.

KPIT Technologies Ltd. is a global partner to the automotive and mobility ecosystem, focusing on software development and integration for software-defined vehicles. The company aims to facilitate a clean, smart, and safe future in mobility.

📊 Key Financial Metrics (As of FY2025)

Revenue:₹5,842.35 crore
Net Profit:₹839.6 crore
Earnings Per Share (EPS):₹30.6
Return on Equity (ROE):33.77%
Return on Capital Employed (ROCE):43.96%
Operating Profit Margin:21%
Net Profit Margin:14.37%

🔍 Interpreting the Metrics

  • Revenue and Profit Growth: The company has shown consistent


KPIT Technologies: Key Financials (FY2021–FY2024) :

Fiscal YearRevenue (₹ Cr)Net Profit (₹ Cr)EPS (₹)EBITDA MarginNet Profit MarginROE (%)ROCE (%)
FY20212,0361465.4310.40%7.20%17.20%15.30%
FY20222,43227610.1715.20%11.30%22.10%19.80%
FY20233,36538114.116.00%11.30%28.80%24.50%
FY20244,87159521.9517.80%12.20%33.80%28.70%





🔍 Applying Fundamental Analysis to KPIT Technologies

  1. Revenue Growth: KPIT's revenue grew from ₹2,036 Cr in FY2021 to ₹4,871 Cr in FY2024, indicating a strong upward trajectory.

  2. Profitability: Net profit increased from ₹146 Cr to ₹595 Cr over the same period, showcasing efficient operations and cost management.

  3. Earnings Per Share (EPS): EPS rose from ₹5.43 to ₹21.95, reflecting increased shareholder value

  4. Margins: EBITDA and net profit margins improved, indicating better operational efficiency and profitability.

  5. Return Ratios: ROE and ROCE have consistently improved, suggesting effective utilization of equity and capital

🧠 What This Means for Investors

KPIT Technologies demonstrates strong financial health, consistent growth, and efficient operations. For an investor, this indicates a potentially sound investment, assuming other factors like market conditions and personal investment goals align.


Comments

Post a Comment

Popular posts from this blog

Welcome to Moat in You..!

-
For Exploring Site contents please visit Roadmap section   Welcome to Moat in You – Learn Stock Market Analysis the Smart Way Are you looking to understand the stock market from scratch? Want to learn fundamental and technical analysis in the simplest way possible? You’ve landed at the right place. Moat in You is your one-stop blog to master the art of stock analysis , designed especially for beginners, self-learners, and long-term investors. Whether you're investing in Indian or global markets, this blog simplifies complex stock market concepts with real-world examples, visual guides, and practical insights. Here’s what you’ll discover on Moat in You : ✅ 1. Stock Analysis for Beginners Starting your journey in the stock market can feel overwhelming. That’s why we break down everything from the ground up — no jargon, no complicated formulas. You’ll learn: What a stock is and how the stock market works The difference between investing and trading How to think l...
Read more

What Is the Stock Market, Really?

-
  What Is the Stock Market, Really? At its core, the stock market is a marketplace where people buy and sell ownership (shares) in companies. Think of it like a giant supermarket — but instead of fruits and vegetables, you buy pieces of businesses. Why Do Companies List Shares? Imagine you own a startup and need more money to expand — maybe to open new stores or launch a product. You have two options: 1. Take a loan (but you’ll need to repay it with interest). 2. Sell a piece of your company to public investors and raise money without repayment — this is called an IPO (Initial Public Offering). Term : IPO = When a company offers its shares to the public for the first time. By listing on the stock market, companies get access to capital (money) to grow faster. Example : Infosys listed on the Indian stock market in 1993. It raised funds and grew into a global IT giant. Facebook (Meta) listed in 2012 on the NASDAQ (US) and raised billions. Who Participates in the Stock Market? Partici...
Read more

Warren Buffet Letters_WBL

-
Summary Warren Buffet Letter...!    Why to Read Warren Buffet's Letters to Shareholders  Click Berkshire Hathaway Inc. – Shareholder Letters YEAR LINK YEAR LINK 1977    Click Here 2006 1978    Click Here 2007 1979    Click Here 2008 1980    Click Here 2009 1981    Click Here 2010 1982 2011 1983 2012 1984 2013 1985 2014 1986 2015 1987 2016 1988 2017 1989 2018 1990 2019 1991 2020 1992 2021 1993 2022 1994 2023 1995 2024 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005  
Read more