I am optimistic about KPIT from these levels. Already, the stock is at 50 PE. If the price remains the same for a year, the PE will become 40. That is the level where I will be super comfortable buying large chunks.
Now, coming to management guidance, we should listen to Kishore Pandit’s interview. Here, he talks about a strong pipeline in place. But due to the overall slowdown across Western markets, some of the programs are not getting initiated as expected earlier in the upcoming quarters.
What one can understand from this that this is not a permanent loss of growth for the company. Just this year, they will be behind. Also, even if it grows at 18% a year, I will be happy to buy KPIT for 45 PE for sure. Because one has to ask himself – do you see KPIT going bankrupt or reducing revenues 10 years down the line. And, for a company of KPIT’s quality, one should buy when there is blood on the market.
It Will End The Year At The Lower End Of Its 18-22% Guidance Band: KPIT Tech | CNBC TV18
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