Rs 256 to Rs 1,774: This IT stock turned into a multibagger in three years, hit record high today

Shares of KPIT Technologies have clocked multibagger returns in the last three years. The multibagger stock, which closed at Rs 256.7 on July 2, 2021 rose to a record high of Rs 1773.90 today, clocking 591% returns during the period. In comparison, the benchmark BSE 500 index has climbed 68.38% in three years. KPIT Technologies shares rose 2.95% to a record high of Rs 1773.90 against the previous close of Rs 1723 on BSE.

Total 0.66 lakh shares of the firm changed hands amounting to a turnover of Rs 11.56 crore on BSE. Market cap of the firm climbed to Rs 47,865 crore.

In a year, the stock has gained 64.52 per cent and risen 249 per cent in two years. The stock delivered multibagger returns of 580% in three years.

The stock hit a 52-week low of Rs 961 on July 24, 2023.

In terms of technicals, the relative strength index (RSI) of KPIT Technologies stock stands at 72.4, signaling it's trading in the overbought zone. KPIT Technologies stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Here’s a look at what analysts said on the outlook of the KPIT Tech stock.

Kushal Gandhi, Technical Analyst, StoxBox expects the stock to cross the Rs 2,000 mark.

"The IT index shows improved market leadership, with KPIT emerging as a standout market leader. The recent price action has resulted in a breakout from a double-bottom pattern, indicating a potential trend reversal. We anticipate that this momentum will persist. The critical resistance level stands at Rs 1764. After a volatile close on the Union election day, the stock rebounded with increased trading volumes and relative strength compared to the 50 index. The lower volatility indicates a reduced likelihood of erratic movements and has attracted significant buyer demand. We recommend buying KPIT Tech with a target price of Rs 2072 and a protective stop at Rs 1610," said Gandhi.

Deven Mehata, Equity Research Analyst at Choice Broking said, "KPIT Tech is currently trading at Rs 1745 levels and has shown a robust uptrend, forming higher highs and higher lows over the past five days. The stock's breakout above Rs 1640 levels, coupled with decent trading volumes, indicates significant strength. It is currently trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMAs), underscoring its bullish momentum. The stock has encountered a minor resistance at Rs 1765 levels. A decisive close above this resistance could propel the stock towards the Rs 1900 level and beyond. Investors holding positions from lower levels are advised to book partial profits at the current market price. They can also maintain their positions with a trailing stop loss set at Rs 1640 level to protect against the potential downside risk. Overall, KPIT Tech demonstrates a strong technical outlook, with the potential for further upward movement if it surpasses the key resistance level of Rs 1765. Investors should keep an eye on this level for a potential breakout that could lead to significant gains."

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi said, "KPIT support will be at Rs 1,675 and resistance at Rs 1,775. A decisive close above the Rs 1,775 level may trigger a further upside to Rs 1845. The expected trading range will be between Rs 1635 and Rs 1865 for the short term."

Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth said, "KPIT Tech has been consolidating in a broad range of Rs 1330-1630 since March 24 and has recently given a breakout from this range on the higher side. RSI on daily timeframe is in an overbought zone and is indicating towards minor dip in stock in near term. However, our overall outlook remains bullish on the stock and any dip towards 1700/1660 can be used as buying opportunity. On higher side, we expect stock to move towards Rs 1880 in short term whereas our medium to long term target will be in the range of Rs 1990/ Rs 2060."

The IT firm is yet to announce its earnings for the quarter ended June 2024. The IT firm reported a 3.22% rise in net profit for the March 2024 quarter. Net profit climbed to Rs 165.9 crore in Q4 against Rs 156.7 crore in Q3 of the previous fiscal. The board of directors of the company recommended a final dividend of Rs 4.60/- per equity share i.e. (46%) of face value of Rs. 10/- each for the financial year 2023-24. Revenue rose 5% quarter-on-quarter (QoQ) to Rs 1,321 crore compared to Rs 1,260 crore in the last quarter. EBITDA or earnings before interest, tax, depreciation and amortisation climbed 5.7% to Rs 277 crore in Q4 from Rs 262 crore recorded in the December quarter.

KPIT Technologies Limited is a 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.