Why KPIT Technologies stock rose 19% today

KPIT Technologies share rose 18.52% intra day in afternoon session today amid heavy volumes traded on the counter. On January 5, Goldman Sachs initiated coverage wih a Buy call on the stock. The brokerage sees an upside of around 75 per cent at Rs 1,040 amid a strong growth outlook going ahead.

The stock hit all time high of Rs 749 today against Rs 631.95 in the previous session. The stock has gained 18.96% in the last 2 days. The share opened 4.36% higher at Rs 659.50 today.

KPIT Technologies share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock fell to a 52 week low of Rs 127.60 on January 25, 2021 on BSE.

KPIT Technologies share has gained 425% in one year and risen 15.87% since the beginning of this year. In a month, the stock has zoomed 42.53%.

Total 10.35 lakh shares of the firm changed hands amounting to a turnover of Rs 74.29 crore on BSE. Market cap of the firm rose to Rs 19,461 crore on BSE.

The brokerage stated, "We initiate on KPIT Technologies with a Buy rating with a target of Rs 1040 apiece as it is uniquely positioned as a 100 per cent automotive software integrator helping large OEMs accelerate their R&D projects in CASE related production platforms."

 "As the auto industry shifts focus towards electric powertrains, our bottom up work with our global analyst teams indicates that R&D spending on CASE (connected, autonomous, shared, electric) technologies at the top 10 global auto R&D spenders is poised to triple over FY21-FY26 to $61 billion. Europe's CY35 ban on ICE vehicle sales has accelerated this shift," the foreign brokerage firm said in its report.

 "KPIT is uniquely positioned as a 100 per cent automotive software integrator helping large OEMs accelerates their R&D projects in CASE related production platforms. We believe KPIT's expertise in high entry barrier areas like L3-L5 autonomous driving, vehicle to anywhere connectivity, digital clusters and battery management system enhancement; combined with a strong talent pool (3rd largest auto tech talent pool globally), position it well to gain wallet share in the rapidly growing CASE R&D arena," Goldman Sachs said.

KPIT Technologies Limited is an India-based technology company, which is focused on automobile engineering and mobility solutions. The company offers electronic and mechanical engineering solutions to its customers.

It also analyses data for diagnostics, maintenance and tracking of assets and related connectivity solutions, including data and analytics beyond embedded or mechanical engineering and their connectivity and integration with back-end information technology (IT) systems and platforms for the automobile and mobility sector.