KPIT technology Stock Research

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KPIT technology Detail

KPIT technology is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to IT sector.

As per the Company website it is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future.

In Jan 2018 KPIT Cummins merged with Birlasoft and two companies were created. One of them deals with IT software services and has name Birlasoft and other deals with Automotive Automation and is named KPIT technology.

In this post I will be covering post merger KPIT technology because that is of relevance as of this writing. The Company specializes in embedded software, AI & Digital solutions. Thus enables customers accelerate implementation of next generation mobility technologies.

The solutions offered by the Company are aimed to Automobile industry. It is proving below solutions which will help in next generation cars

  • Autonomous driving and ADAS
  • Electric and Conventional Powertrain
  • Connected Vehicles
  • Vehicle Diagnostics
  • Autosar
  • Mechatronics
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The stock is newly listed after above merger and de-merger exercise. Instead of sharing price performance chart before the exercise it is better to see current price performance chart.

KPIT technology Stock Performance

Note above price chart shows price performance of the Stock post listing after the merger and demerger exercise. Since it is new entity with altogether separate business area new price chart is only applicable. The previous price performance is not applicable in this case.

The Company got listed near 100 INR price and is now trading close to it. Since it is short time price performance chart it can not be used to make any decision about stock price performance.

KPIT technology My Opinion

KPIT technology is a IT Company. It has transformed itself into niche player in IT field. It is now concentrating on Automation of Automobiles. The infotainment and autonomous driving are the key fields. It creates powertrain software for next generation of vehicles. The Company also has potential to help Clients with transition to electric vehicles.

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I like companies with niche focus. That helps them excel and gain market share on focused niche. Auto sector is going through transition and is one of the important sectors. IT is slowly becoming important for Auto sector as well. With customers demanding connected cars and other digital applications are forcing Auto Companies to leverage IT Companies for better product creation.

The problem is KPIT will suffer if there is slow down in Auto sector. It will also get impacted if any of the Client chooses different service provider. This is the risk associated with IT service provider Companies. More over there are Indian IT companies which are operating same niche as KPIT. That will also impact the Company in growth.

I am already invested in IT sector and as of now not willing to increase my exposure to the sector. My own Company operates in the niche KPIT operates in. So I will not be tracking or investing in this Company.

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In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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