Selecting a reliable stock might be exceedingly challenging during market fluctuations. To make things a little easier, we have identified one stock that could provide excellent short-term gains. Let us examine it.
%20(1).png "KPIT TECHNOLOGIES LTD- Best stock for short term investment (May 2024)")
| Table of Content |
| KPIT Technologies Ltd. (NSE: KPITTECH) |
| WHY KPIT TECHNOLOGIES |
| VALUATION OF KPIT TECHNOLOGIES |
| KPIT TECHNOLOGY PRICE TRENDS COMPARED TO OTHERS |
| KPIT TECHNOLOGIES ON TECHNICAL CHART |
KPIT Technologies Ltd. (NSE: KPITTECH)
The Current Price Per Share: ₹1,551.55
Variation: +3.12%
Range for 52 weeks: ₹911.80 to ₹1,764.00
Market Capitalization: ₹42,535B;
price to earnings Ratio: 71.8
KPIT Technologies is an organisation that offers IT services and consulting. With the price above the short-, medium-, and long-term moving averages, it showed strong momentum. The stock has a solid outlook, good management, and steady financial performance.
WHY KPIT TECHNOLOGIES
KPIT Technologies Ltd. has recently demonstrated remarkable revenue growth. The important aspects are as follows:
1. Figures for Q4 FY24:
Revenues for Q4 FY24 rose to $159 million, indicating growth in both the year-over-year (Y-o-Y) and quarter-over-quarter (Q-o-Q) segments of 6.6% and 28.5%, respectively.
The Middleware, Connected, and Autonomous domains in particular were the key drivers of the increase, which was seen throughout several regions, with Asia leading the way.
2. Whole Year FY24:
KPIT Technologies recorded a 44.8% rise in sales for the full year that concluded in March 2024, coming in at ₹48,715.4 crore as opposed to ₹33,650.4 crore in FY23.
Profit was ₹594.5 crore, an important 56% increase from ₹380.9 crore the year before.
3. Forecast for FY25:
KPIT anticipates CC revenue increase of between 18% and 22%.
A 20.5% or more EBITDA margin is the company's goal.
In Q4 FY243, they signed new contracts worth $261 million.
VALUATION OF KPIT TECHNOLOGIES
1. Valuation metrics:
KPIT Technologies's price-to-earnings (P/E) ratio is 68.9x at the moment of trading.
KPITTECH has a greater P/E ratio than its rivals, with an average of 60.8x.
KPITTECH's P/E ratio in the Indian software sector is likewise higher than the 36.7x industry average.
2. Estimated Fair Value:
Based on a Discounted Cash Flow (DCF) model, KPITTECH's estimated fair value is ₹374.36 per share.
Nevertheless, at ₹1,510, the market price right now, KPITTECH is trading over its projected fair value.
KPIT TECHNOLOGY PRICE TRENDS COMPARED TO OTHERS
As the following graphic makes evident, KPIT TECH has been exhibiting a significant trend in comparison to its competitors, TCS & INFY. Another thing to keep in mind is that KPIT TECH is very close to its all-time high and may extend its bull run.
KPIT TECHNOLOGIES ON TECHNICAL CHART
According to the chart that is linked below, KPIT TECH is trending upward as indicated by the rising trend line. Additionally, the price is very near to 1585, which has been the stock's barrier over the past two months.
This resistance will begin to function as support for this particular stock once the price closes over 1585.
1585 may be an excellent price point to purchase this stock. The trade's stop loss will be 1325, and its target will be 1900.
This demonstrations is simply for instructional purpose. A financial counsellor should be consulted before making any investments.
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