At a glance:KPIT has quietly become thebrain of global auto giants, building the software that powers autonomous driving, EV intelligence, and connected car ecosystems. With a44% net profit CAGR, aROCE of 41%, and a P/E of 44x, this is no IT outsourcing sweatshop. It’sMobility as a Software (MaaS).
🏢 About the Company
- Incorporated:Originally part of KPIT Cummins, demerged and listed in its current avatar in 2019
- Focus:Embedded software, AI, AUTOSAR, EV systems, vehicle cybersecurity, and ADAS
- Clients:Top 20 global OEMs + Tier 1s (confidential, but think BMW, Renault, Honda)
- Talent:13,000+ “Automobelievers” across India, Europe, US, Japan, China, Thailand
- Recent Update:Participating in Goldman Sachs’ London Symposium = global money sniffing around
👥 Key Managerial and Shareholding Snapshot
| Category | FY22 | FY25 |
|---|---|---|
| Promoter Holding | 40.1% | 39.47% (stable) |
| FIIs | 15.99% | 17.17% (peaked at 26.5% in 2023) |
| DIIs | 10.74% | 21.29% ✅ doubling |
| Public Holding | 31.69% | 21.15% ⬇️ retail is being replaced |
| ROE (FY25) | 33.2% | – |
| ROCE (FY25) | 40.9% | – |
Note: FIIs sold in the past year, but DIIs filled the gap like true believers.
📊 5-Year Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | ROCE (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 2,036 | 147 | 15% | 14% | 5.33 |
| FY22 | 2,432 | 276 | 19% | 25% | 10.00 |
| FY23 | 3,365 | 387 | 19% | 30% | 13.90 |
| FY24 | 4,872 | 599 | 20% | 38% | 21.69 |
| FY25 | 5,842 | 840 | 21% | 40.9% | 30.63 |
5Y CAGR:
- Revenue: 22%
- Net Profit: 40.4%
- Stock Price: 86%
- ROCE: 🚀 Rocket Fuel
🔮 Forward Fair Value (FV) Estimate
- FY25 EPS = ₹30.63
- CMP = ₹1,370
- PE = 44.7x
Let’s say KPIT maintains 30–35% profit growth and commands Persistent Systems-like P/E (~60x if rerated):
🎯Fair Value Estimate (12–18 months): ₹1,650 – ₹1,850(Assuming no US recession
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