Birlasoft Ltd. share price target

KPIT posted flat margins and steady revenue growth in 4QFY17 (1.2% organic). An improvement in business mix and increase in offshore utilisation helped offset INR appreciation and MicroFuzzy integration. Growth was led by the Product Engg Services SBU (5.5% QoQ) and Products & Platforms (11.4% QoQ). Unsurprisingly, IES (-2.3% QoQ) and SAP (1.4% QoQ) SBUs struggled.

In rupees terms, revenues grew 3.3% QoQ to | 858.4 crore, above our estimate of 2% growth to | 846.9 crore EBITDA margins declined 10 bps QoQ to 10.1% below our estimate...

KPIT's CC revenue growth guidance of 6-8% for FY18E is disappointing, in our view. Assuming stable currency rates in FY18E, the guidance implies revenue CQGR of just 1-1.5% over 4QFY174QFY18E, which is at odds with management commentary of good visibility for the fiscal. Given the challenging business scenario, with challenges being witnessed in MFG vertical, INR appreciation and disruptive trends like SMAC, which are impacting ERP (>50% of revenue), we...

KPIT Technologies is leading product engineering and IT consulting partner with FY16 revenue of INR 32.2bn. In 3QFY17 revenue share amongst verticals: automotive & transportation (39.29%), manufacturing (37.2%) & Energy & Utilities (14.07%) and others (9.44%). It operates in five main business segments: Integrated Enterprise Solutions (29.55%), Product Engineering Services (31.8%), Product and Platform (3.89%), SAP (23.4%) and Digital Transformation (11.37%). KPIT derives 12.64% of its revenue from Cummins, which is the largest client. The company has 11,881 employees spread across more than 10 countries to cater services to...

ICICI Securities Ltd | Retail Equity Research KPIT reported weak Q3FY17 earnings in margin terms but revenue was above our estimates with exceptional item boosting PAT US$ revenues declined 0.4% QoQ to $122.9 million and was in line with our $122.2 million estimate In rupees terms, revenues declined 0.04% QoQ to | 830.7 crore and was above our estimate of | 823.4 crore with rupee realised at 67.6 EBITDA margins declined 80 bps QoQ to 10.2%, and was below our...

KPIT's USD revenue declined 0.5% qoq to US$122.8mn (below our estimate by 1%) in 3QFY17. Adjusted CC revenue rose by 0.65% qoq, after factoring in divestment of its functional safety business. Core volumes rose by 1% qoq, even as blended pricing declined 1% qoq. On yoy basis, blended pricing dipped by 8.8%. This is the 11th successive quarter of yoy decline in blended pricing. Pressure remains severe particularly offshore, with billing rates down 7-10% yoy in each of the last 6 quarters. This reflects the struggles that KPIT is facin g on this front, owing to the challenges faced by its top clients, IT budget cuts and subsequent demands for...

KPIT Technologies is leading product engineering and IT consulting partner with FY16 revenue of USD 487mn. In 2QFY17 revenue share amongst verticals: automotive & transportation (40.71%), manufacturing (34.79%) & Energy & Utilities (14.44%) and others (10.05%). It operates in five main business segments: Integrated Enterprise Solutions (30.58%), Product Engineering Services (33.3%), Product and Platform (4.5%), SAP (22.82%) and Digital Transformation (8.8%). KPIT derives 13.09% of its revenue from Cummins, which is the largest client. The company has 10,816 employees spread across more than 10 countries to cater services to...

ICICI Securities Ltd | Retail Equity Research KPIT reported better-than expected Q2FY17 earnings in revenue terms but below our expectations on margins and profitability front US$ revenues grew 3.1% QoQ to $123.4 million, above our 0.2% QoQ growth and $120 million estimate In rupees terms, revenues grew 3.5% QoQ to | 830.9 crore below our estimate of flat QoQ growth and | 803 crore EBITDA margins increased 30 bps QoQ to 11%, below our 90 bps...

Revenue vs. Margins We Remain Sceptical on Balancing Act' While the street appears to be enthused on healthy revenue growth of KPIT Technologies (KPIT) in 2QFY17, we are concerned about two factors i.e. revenue growth sustainability (given that SAP & IES SBUs remain growth-challenged) and margins. Challenging macroeconomic scenario, disruptive trends like SMAC and company-specific issues have left little room for KPIT to effectively address these twin issues i.e. sustainable revenue growth and sustaining margin at acceptable level. With uncertain revenue growth outlook for 3QFY17, we do not envisage any...

KPIT reported a weak set of quarterly earnings in Q1FY17 : US$ revenues declined 3.52% QoQ to $119.8 million marginally below our 4% QoQ growth and $119.2 million estimate. In rupees terms, revenues de-grew 4.5% QoQ to | 803.2 crore and was mainly in line with our estimate of 5.2% QoQ de-growth and | 797 crore .EBITDA margins declined 583 bps QoQ to 10.7%, below our 220 bps decline and 13.5% estimate mainly on account of wage hike (~250 bps impact) and currency headwind (~25 bps impact) .Reported PAT of | 55 crore was below our estimate of | 71.4 crore led by a margin miss. ICICI Securities Limited now value the stock at 10x FY18E EPS estimate of | 14.2 and lower target price to | 142 and maintain our HOLD rating.

Trendlyne has 18 reports on KPIT updated in the last year from 6 brokers with an average target of Rs 158.8. Brokers have a rating for KPIT with 2 downgrades,5 price downgrades,5 price upgrades in past 6 months and 6 price downgrades,6 price upgrades in past 1 Year.