External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

<ul><li>KPIT Technologies Ltd. (KPIT) reported revenue of Rs 1,199 Cr in Q2FY24, up 9.3% QoQ and 8.4% QoQ (in CC terms) which stood above our expectations.</li><li>The company’s operating profit stood at Rs 192 Cr, reporting an encouraging growth of 10% on a QoQ basis.</li><li>This was also above our expectations. The company’s operating margins remained flat at 20% despite of wage hike in this quarter, which is commendable. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KPIT Technologies Ltd. (KPIT) reported revenue of Rs 1,199 Cr in Q2FY24, up 9.3% QoQ and 8.4% QoQ (in CC terms) which stood above our expectations.The company’s operating profit stood at Rs 192 Cr, reporting an encouraging growth of 10% on a QoQ basis.This was also above our expectations. The company’s operating margins remained flat at 20% despite of wage hike in this quarter, which is commendable. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KPIT Technologies Ltd. - Robust Execution; Resilient Outlook to Support Growth

<ul><li>We initiate coverage on KPIT Technologies Ltd (KPIT) with a BUY rating and Target Price of Rs 1500/share, implying an upside of 28% from the CMP.</li><li>We believe KPIT is well-placed to revive its growth momentum andthis recovery would be driven by 1) Significant growth opportunities in the ER&amp;D space in the automobile vertical,2) Sustainable operating margins on account of better services mix and improving operational efficiencies,3) Robust balancesheet, strong return ratios,and healthy free cash flow generation, 4) Efficient execution capabilities, and 5) The company’s rampup in new deal wins along with strong client additions</li><li>.We believe these attributes would aid KPITin achieving sustainablegrowth in the longterm.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We initiate coverage on KPIT Technologies Ltd (KPIT) with a BUY rating and Target Price of Rs 1500/share, implying an upside of 28% from the CMP.We believe KPIT is well-placed to revive its growth momentum andthis recovery would be driven by 1) Significant growth opportunities in the ER&amp;D space in the automobile vertical,2) Sustainable operating margins on account of better services mix and improving operational efficiencies,3) Robust balancesheet, strong return ratios,and healthy free cash flow generation, 4) Efficient execution capabilities, and 5) The company’s rampup in new deal wins along with strong client additions.We believe these attributes would aid KPITin achieving sustainablegrowth in the longterm.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KPIT Technologies Ltd - Engineered for Accelerated Growth

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>In our prior EM Strategy (August 7, 2023) we discussed how MSCI EM (EEM-US) was near major 1+ year resistance at $42.</li>
<li>After being unable to break out, EEM-US consolidation has continued, and is again approaching major 10.5-month support at $37-$37.50, which has been our important line-in-the-sand throughout 2023.</li>
<li>As long as EEM-US is above $37, we are buyers on this pullback.</li>
</ul>


In our prior EM Strategy (August 7, 2023) we discussed how MSCI EM (EEM-US) was near major 1+ year resistance at $42.
After being unable to break out, EEM-US consolidation has continued, and is again approaching major 10.5-month support at $37-$37.50, which has been our important line-in-the-sand throughout 2023.
As long as EEM-US is above $37, we are buyers on this pullback.


MSCI EM Index Approaching 10.5-Month Support; Remain Overweight India; Many EM Buys

US Treasury (10 Yr Generic) / Technical Analysis

<ul>
<li>In our two previous Int'l Compass reports (Aug. 18 &amp; 24) we discussed that we were buyers on the pullback to the major $93 support level on MSCI ACWI (ACWI-US).</li>
<li>$93 on ACWI is 1+ year base support and a level that coincides with the 10-month uptrend. We remain bullish as long as the ACWI-US is above $93.</li>
<li>$93 on ACWI-US is likely the low for this pullback as long as the 10-year Treasury yield and DXY can stay below respective resistance levels (4.3%-4.35% and $103.70-$105.70).</li>
</ul>


In our two previous Int'l Compass reports (Aug. 18 &amp; 24) we discussed that we were buyers on the pullback to the major $93 support level on MSCI ACWI (ACWI-US).
$93 on ACWI is 1+ year base support and a level that coincides with the 10-month uptrend. We remain bullish as long as the ACWI-US is above $93.
$93 on ACWI-US is likely the low for this pullback as long as the 10-year Treasury yield and DXY can stay below respective resistance levels (4.3%-4.35% and $103.70-$105.70).


Further Declines in DXY, Sovereign Yields May Provide More Fuel for a Rally in Global Equities

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


-------------
Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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<ul>
<li>KPIT reported a strong Q1FY24 with 7.1% constant-currency (CC) revenue growth and EBIDTA growth of 13.3% QoQ. EBITDA margin expanded by 90bp QoQ to end at 20%.</li>
<li>KPIT is upbeat about the demand environment. OEMs are continuing to spend heavily on new technologies. KPIT itself is investing significantly in R&amp;D, especially Generative AI.</li>
<li>Deal wins was healthy at $190mm vs typical run-rate of $150mm+. The pipeline is also healthy across practices.</li>
</ul>


KPIT reported a strong Q1FY24 with 7.1% constant-currency (CC) revenue growth and EBIDTA growth of 13.3% QoQ. EBITDA margin expanded by 90bp QoQ to end at 20%.
KPIT is upbeat about the demand environment. OEMs are continuing to spend heavily on new technologies. KPIT itself is investing significantly in R&amp;D, especially Generative AI.
Deal wins was healthy at $190mm vs typical run-rate of $150mm+. The pipeline is also healthy across practices.


India

KPIT Technologies Limited operates as a technology company. The Company specializes in embedded software, artificial intelligence, and digital solutions. KPIT Technologies serves automobile industry worldwide.

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KPIT Technologies (KPITTECH IN)

KPIT Technologies Ltd. - Robust Execution; Resilient Outlook to Support Growth

KPIT Technologies Ltd. (KPIT) reported revenue of Rs 1,199 Cr in Q2FY24, up 9.3% QoQ and 8.4% QoQ (in CC terms) which stood above our expectations.

Axis Direct

KPIT Technologies Ltd - Engineered for Accelerated Growth

We initiate coverage on KPIT Technologies Ltd (KPIT) with a BUY rating and Target Price of Rs 1500/share, implying an upside of 28% from the CMP.

Axis Direct

MSCI EM Index Approaching 10.5-Month Support; Remain Overweight India; Many EM Buys

$EEM is again approaching major 10.5-month support at $37-$37.50, which has been our important line-in-the-sand throughout 2023. As long as $EEM is...

Vermilion Research

Further Declines in DXY, Sovereign Yields May Provide More Fuel for a Rally in Global Equities

We continue to believe $93 on $ACWI is likely the low for this pullback as long as the 10-year Treasury yield $TNX and $DXY can stay below their...

Vermilion Research

KPIT: Stellar Q1FY24 Earnings

KPIT offers an upside potential of 19%+ IRR over a holding period of <3 years, through the end of FY26. KPIT is a direct beneficiary of rapid...

Ankit Agrawal, CFA

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