KPIT Tech rallies 30% in 2 weeks, hits record high
Shares of KPIT Technologies continued their its northward journey, surging 10 per cent to Rs 127 — the stock’s record high — on the BSE on Wednesday in an otherwise weak market.
The IT consulting & services company’s stock has rallied 30 per cent in the past two weeks after promoters bought shares of the company through the open market. In comparison, the S&P BSE Sensex was down 3.5 per cent during the same period. The stock surpassed its previous high of Rs 118.90, touched on September 21, 2020.
On September 18, 2020, Anupama Kishor Patil, acquired 1.4 million equity shares of KPIT Technologies for Rs 100 per share on the BSE, the bulk deal data shows. On September 22, Anupama Patil had bought an additional 94,000 shares of the company via the open market.
Post acquisitions, Anupama Kishor Patil’s stake in KPIT Technologies increased to 0.59 per cent from 0.04 per cent, the company said. The names of the sellers were not ascertained immediately.
In a separate regulatory filing, the company said it released the majority of pledged shares lying with the Vistra ITCL (India) Limited (‘Vistra’).
Meanwhile, in the past month, the stock has soared 43 per cent, against a 4 per cent decline in the S&P BSE Sensex. In the past three months, it has zoomed 101 per cent, as compared to 8.6 per cent rise in the benchmark index.
As per the management’s initial assessment, there will be a significant impact in H1 of FY2021 and it expects the recovery to commence from Q3 of FY2021. KPIT has a strong balance sheet with over Rs 380 crore net cash balance and negligible debt.
The company has also taken proactive steps in deferring its medium-term Capex plans and pulling out levers to manage profitability. It remains confident that it will be able to meet all its delivery & financial commitments in time. Except for a few, KPIT has not seen any material changes in production programs and it continues to engage strategically with its customers across the globe, the company said in 2019-20 annual report.
KPIT continues to believe that Europe, particularly Germany will bounce back fast paving way for a quicker and strong bounce back, towards the end of FY2021.