KPIT share price target 2023, 2024, 2025, 2026, and 2030: In this article, you will learn about KPIT share price target 2023, 2024, 2025, 2026, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned KPIT share price target 2023, 2024, 2025, 2026, and 2030, along with the fundamentals of the company.
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KPIT: Company Profile
KPIT is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 7000 automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates clients’ implementation of next-generation technologies for the future mobility roadmap. With engineering centers in Europe, the USA, Japan, China, Thailand, and India, KPIT works with leaders in automotive and mobility and is present where the ecosystem is transforming.
MR. Kishor Patil Co-Founder, MD and CEO About KPIT
Share Holding Pattern
KPIT Share Price Chart
Revenue By Geography
KPIT Chairman About Automotive and CV Industry
The Mobility industry, as most of the other industries, had a setback when the pandemic struck and revenues, as well as profits, dropped drastically for most of the players. The industry is used to cyclical falls in vehicle sales but this was something totally new and unexpected. Our clients were also no exception to this sudden jolt, but as they have done before, they also showed a lot of buoyancy and soon came to terms with the new normal, which is even newer for the mobility industry – a normal driven mostly by software.
Emerging Technology Trends
1.Connected Mobility
A digital cockpit is taking various forms and shapes from sophisticated infotainment systems for entertainment to maps and other meaningful information for drivers and passengers. Vehicles are starting to talk to each other and other sources while on the road – enabling varied use cases for diagnostics, over-the-air updates, payments, and more. A study by ABI Research suggests that software issues cost carmakers $17 billion a year, which can be reduced with connected vehicle technologies. Connected mobility will continue to be a key node in a seamless lifestyle.
2. Autonomous Vehicles
In emerging markets, Advanced Driver Assistance features are becoming differentiators. Driven by regulation and consumer demand, features like Reverse Park Assist, Blind Spot Detection, Drowsiness Detection, and several other features are becoming commonplace. Each of these features is powered by software to avert accidents and keep the car’s occupants safe. In mature markets with standardized infrastructure, advancements towards fully autonomous driving have picked up pace in the last few years.
3. Shared Mobility
In emerging markets, Advanced Driver Assistance features are becoming differentiators. Driven by regulation and consumer demand, features like Reverse Park Assist, Blind Spot Detection, Drowsiness Detection, and several other features are becoming commonplace. Each of these features is powered by software to avert accidents and keep the car’s occupants safe. In mature markets with standardized infrastructure, advancements towards fully autonomous driving have picked up pace in the last few years.
4. Electric Vehicles
This is the main segment that will have an impact on the KPIT share price target and KPIT positioned itself in a very good position in the EV industry. The Growing environmental consciousness and regulations are catalyzing the development of a portfolio of EVs with more efficient electric powertrains, higher driving ranges, and best-in-class safety. These EVs have sophisticated software for battery management, inverters, and varied charging standards across the globe. Software is at the forefront here, too.
With these trends gaining momentum, the cost of electronics as a % of the total cost of a car is expected to go to almost 50% in 2030. This is close to a 60% increase over the current levels. While the global vehicle production CAGR for the next decade is expected to be around 3%-4%, the growth CAGR for automotive software is anticipated to be around 14%. I am glad to inform you that KPIT is at the forefront of all the underlying technologies. We are investing in these areas and we are confident that we will continue to be leaders in dependable technologies relevant to the mobility industry.
By considering all the above-mentioned opportunities that KPIT has to grow in the future and the strong business footprint of KPIT. KPIT share price target for 2022 is Rs 650.
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KPIT Share Price Target 2023
During this year, our $ revenue stood at $ 274.77 Million, against $ 303.81 Million in FY20. During the second half of the year, there was a considerable shift in the work from onsite to offshore and thus in terms of volumes, the revenue decline during the year was limited. In ₹ terms, revenue for the year was reported at ₹ 20,357 Million as against ₹ 21,562 Million in FY20. KPIT share price target will mainly depend on the performance of KPIT in the financial year 2022. Considering all the factors and government support for the EV segment, we believe KPIT share price target will hit the target as per our assumptions.
The passenger cars vertical contributed around 77% of the total revenues in FY21 whereas the commercial vehicles segment contributed around 22% of the revenues. New Mobility is a new vertical of focus and contributed just around 1% of the revenues whereas the balance was from other small segments. The Automotive Industry saw a severe contraction of sales in H1 of FY20 followed by a steady recovery where growth is now expected to be in double digits in 2021. Auto-sales growth as per IHS Markit is expected to be positive for the next 3 years with as much as 9% growth in 2021.
Forecasts Indicate that globally new passenger car sales will rise by 15% and commercial vehicles sales by 16%, in 2021. Global EV sales in 2021 are predicted to be at 3.4 Mn units from 2.5 Mn units in 2020, supported by government incentives. In 2021 Europe is expected to lead sales growth (10.8%) after 2 years of weak sales. The narrative of renewed enthusiasm for driving and owning a car, at least till the virus remains a threat, will help keep demand steady
KPIT is positioned as an independent, scalable, and dependable partner to build and integrate software features (Software Integration Partner) to accelerate the journey from prototype to production. We are focused only on the automotive and mobility industry with strategic client relationships in the passenger cars, commercial vehicles, and new mobility verticals. KPIT share price target for 2023 is Rs 880.
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KPIT Share Price Target 2024
KPIT won a multi-million USD strategic deal for a European Automaker’s electrification program. The engagement pans in excess of 5 years and the deal value is estimated at USD 50+ million. KPIT will set up a dedicated software competence center in Munich and India. This strategic software program spans across development, integration, and software maintenance post start of production. Deals will also have an impact on the KPIT share price target, the more the deals won by KPIT share, the higher the share price target for KPIT.
A leading Automotive Tier I and system supplier for Autonomous Driving and ADAS and a market leader in automotive safety electronics products has selected KPIT as their strategic software partner. This Strategic partnership will leverage cutting-edge software technology from KPIT for various vehicle programs globally for Autonomous Driving, ADAS, and AUTOSAR domains. The engagement pans for 5 years and the deal value is estimated at USD 60+ million. The partnership involves KPIT collaborating seamlessly with them across multiple countries in Europe, the US, and Asia for various production programs.
KPIT share price has grown at a CAGR of 40% over the last 5 years, 74% CAGR over the last 3 years, and KPIT share price has given 270% returns in just one year. By considering the strong position of KPIT in the automotive industry, KPIT share price target for 2024 is Rs 990.
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KPIT Share Price Target 2025
The coming decade promises to be one of the largest in terms of Investments for Automakers. Megatrends driven by Connectivity, Autonomous, Shared mobility, and Electrification (CASE) continue their secular adoption, as they persist to disrupt the industry. The coming years will also see investments getting prioritized by Automakers in areas of digital and customer experience.
A recently published (April 21) report by IHS Markit on ‘Automotive R&D Investments Growth Rates in 2021’ states the top three key domain areas leading the automotive R&D budgets to be software & software related feature development, electrical architecture, and related hardware. R&D spending on software & software-related feature development is leading at OEMs as well as Tier-1s with 41% & 50% R&D spending expected, respectively.
E-mobility has emerged as the main feature of investment according to the 2021 R&D survey results, namely around battery technology and management systems, e-motors, and power electronics. Other key feature areas are Autonomy, Infotainment & Digital Cockpit, and Connected Car. KPIT share price target for 2025 is Rs 1,120.
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KPIT Share Price Target 2026
OEMs are defining their R&D strategy toward the development of features/requirements to comply with upcoming regulations (in terms of e-mobility, connectivity, and autonomy). All car companies have an ambitious plan to deliver BEVs (Battery Electric Vehicles) that have to comply with all upcoming regulations from Europe, Greater China, North America, and other regions. Electronics cost per car as a percentage of the total car cost has steadily increased from 27 percent in 2010 to 40 percent in 2020 and is expected to reach 45-50 percent by 2030.
In terms of geography, US contributed around 42%, Europe 41%, and the balance 17% came from Asia. All our strategic clients are global in nature and hence the geography break-up is increasingly becoming global. Our Strategic Accounts (T25) contributed around 86% of the overall revenues as compared to around 82% last year. The US and Europe will play a major role in the KPIT share price target as the majority of the KPIT revenue is from the US and Europe. KPIT share price target for 2026 is Rs 1,270.
KPIT Share Price Target 2030
A modern car is already estimated to have software comprising 100 million lines of code. With the addition of autonomous driving software, it is estimated that the cars will carry software content with anywhere about 300 million lines of code. Such large software complexity cannot be managed by an existing signal-based and control-oriented software architecture. Further, the cars are already increasingly connected and they are rapidly evolving into machines that are nothing short of “data on wheels”, bringing rich connected, digital services to customers. While it is possible to update the software of cars today, there is a lot that can be asked for.
A future-ready and service-oriented architecture is essential to meet the demands of the speed of development, updatability, on-demand feature addition as well as safety and security. As a technology leader in the area of automotive software across domains from the in-vehicle operating systems to autonomous driving, KPIT is at the forefront of these technology advancements. With multiple assets such as class AUTOSAR platform, boot loader, OTA update solution, and a service-oriented architecture-based AUTOSAR Adaptive platform, KPIT is engaged with carmakers to realize the middleware platform approach for domain controllers and next-generation High-Performance Computers. Here are some key aspects of the middleware platform:
- Built on Service Oriented Architecture
- Technology to combine signal oriented and services oriented implementation on a multi-core SoC
- Platform to manage safety critical software together with user-centric infotainment software
- Support for remote, over the air software updates
- Customizable for different domains from body domain controller to AD/ADAS domain controller
- Partnership with leading semiconductor and operating system companies
- Robust, end-to-end security
These technology enhancements and innovations made by the KPIT will play an important role in the KPIT share price target in the long run. KPIT is spending a huge amount of money on research and development. KPIT share price target for 2030 is Rs 4,400.
KPIT Share Price Target 2023, 2024, 2025, and 2030
| Year | KPIT Share Price Target |
|---|---|
| 2023 | Rs 880 |
| 2024 | Rs 990 |
| 2025 | Rs 1,120 |
| 2026 | Rs 1,270 |
| 2030 | Rs 4,400 |
Frequently Asked Questions
Is KPIT a good investment?
Yes, KPIT is one of the best companies in the electric vehicle segment. If you want to bet on the EV segment then KPIT technologies is the best company to invest for the long term.
Can I buy KPIT shares?
Yes, you can. KPIT technologies is very strong in terms of financials and fundamentals. The management of the company is also very strong. KPIT has delivered average profit growth of 600% over the last 3 years.
Is KPIT debt-free?
Yes, KPIT is a debt-free company. The debt of the KPIT is 3 crores, which is negligible and the debt-to-equity of the company is 0.
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