“KPIT, incorporated in 1990 by group of Chartered Accountants, provides IT services primarily to manufacturing sector. The company has team of around 5300 professionals serving 144 clients across geographies.”"
KPIT has entered into a joint venture with Bharat Forge for producing plug-in parallel hybrid solution (Revolo) primarily for passenger car. The company believes that hybrid solution will increase efficiency of petrol and diesel engine vehicles by around 60% in urban areas around 45and % in semi-urban areas and highways. KPIT has guided that J.V. will achieve revenue of around Rs 3-5 billion in FY12E. However, our analysis from buyers’ point of view suggest that hybrid solution will take around 4 years to achieve breakeven with annual running of 16,000 kms; whereas factory fitted CNG kit takes around 2 years with annual running of 11,000 kms to achieve breakeven.”
“We initiate coverage on KPIT Cummins Infosystems (KPIT) with “Hold” recommendation. We are valuing the company at Rs 159 per share by assigning 12 P/E multiple (i.e 40% discount to Infosys’s target P/E multiple of 20) to its FY12E EPS of Rs 13.3. However, we have not considered any revenues from Revolo because it is difficult to comprehend potential demand for Revolo in light of relatively higher payback period compared to CNG kit and operational issues like charging of batteries. Hence, we like to wait till launch of the product in market and initial demand trend for the same before considering any revenue."
CLICK 2 EARN MONEY :
Earn Credits Worth Rs 50 On Dealivore By Referring Friends And Help Your Friends Get Rs 50 On Dealivore @ WWW.DEALIVORE.COM NOW
VISIT :STOCKINDIA.SLINKSET.COM>FOR MORE STOCK TIPS AND NEWS****VISIT :BEST EARN MONEY & BEST WEBSITES INFO
No comments:
Post a Comment