Finally i fully sold KPIT, one of the star performer in my PF. My investment average was close to just 60 rupees and exit average is Rs 1078 total holding time 3.5 years
I am sure KPIT will continue doing good with reasonable growth. But the current valuation is only justified if it can maintain the same growth. I personally foresee following medium to long term risk, based on that i made my mind
- New OEM addition will be difficult for KPIT (All low hanging fruits are already in )
- Most of the big OEMs are tightening their wallet, switching integration activities in house which is KPITs core business.
- KPITs diversification and acquisition are not in their core expertize area ( In those domains there are better players globally).
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