#KPIT
Thread on #WayForward & #Outlook
Critical details picked up from Investor Call, PR, Mgmt Interviews, Financial Report, etc.
Disclosure: I am invested in #KPIT
This is not an Investment advise. Please do your research before investing
#NB10x
(1/16)
Thread on #WayForward & #Outlook
Critical details picked up from Investor Call, PR, Mgmt Interviews, Financial Report, etc.
Disclosure: I am invested in #KPIT
This is not an Investment advise. Please do your research before investing
#NB10x
(1/16)
#KPIT #AutoIndustry
*Auto is often blamed for global warming & source of CO2
*Many countries globally have committed to #NetZero
*As a result, Auto industry is witnessing a tectonic shift towards Battery Electric Vehicle ( #BEV) & Hydrogen Fuel Cell Vehicle (HFCV)
#NB10x
(2/16)
*Auto is often blamed for global warming & source of CO2
*Many countries globally have committed to #NetZero
*As a result, Auto industry is witnessing a tectonic shift towards Battery Electric Vehicle ( #BEV) & Hydrogen Fuel Cell Vehicle (HFCV)
#NB10x
(2/16)
#KPIT #RD
*BEV & HFCV is requiring Auto industry to move in the path of software-defined vehicles
*Every company will need to develop, buy & manage lot of S/w to remain leaders
*Many cars exceed 100mn lines of code & it may double or triple in the coming decade
#NB10x
(3/16)
*BEV & HFCV is requiring Auto industry to move in the path of software-defined vehicles
*Every company will need to develop, buy & manage lot of S/w to remain leaders
*Many cars exceed 100mn lines of code & it may double or triple in the coming decade
#NB10x
(3/16)
#KPIT #CASE
*This has led to higher R&D spends on CASE (Connected, Autonomous, Shared, Electric)
*Across Top 10 global Automakers, R&D spends on CASE will grow 3x to $61Bn by FY26
*As role of S/w & Electronics expands, Auto makers will resort to more outsourcing
#NB10x
(4/16)
*This has led to higher R&D spends on CASE (Connected, Autonomous, Shared, Electric)
*Across Top 10 global Automakers, R&D spends on CASE will grow 3x to $61Bn by FY26
*As role of S/w & Electronics expands, Auto makers will resort to more outsourcing
#NB10x
(4/16)
#About #KPIT
*This is where KPIT has a huge play!
*KPIT is a S/w integration partner to global Automotive leaders
*They focus on #Automotive & #Mobility
*Has worldwide footprint in all major Auto hubs
*Only embedded S/w firm with deep domain expertise across CASE
#NB10x
(5/16)
*This is where KPIT has a huge play!
*KPIT is a S/w integration partner to global Automotive leaders
*They focus on #Automotive & #Mobility
*Has worldwide footprint in all major Auto hubs
*Only embedded S/w firm with deep domain expertise across CASE
#NB10x
(5/16)
#KPIT #Vision
"Becoming the world’s number one software accelerator and integrator for the automotive and mobility industry"
#NB10x
(6/16)
"Becoming the world’s number one software accelerator and integrator for the automotive and mobility industry"
#NB10x
(6/16)
#KPIT #Competitors
*Local
#LTTS
#TataElxsi
*Global
#Alten
#AKKA
#Bertrandt
All these competitors operate in multiple sectors like Auto & Aeronautics while #KPIT stands out as the only one which is 100% focused on end to end #Auto sector requirements
#NB10x
(7/16)
*Local
#LTTS
#TataElxsi
*Global
#Alten
#AKKA
#Bertrandt
All these competitors operate in multiple sectors like Auto & Aeronautics while #KPIT stands out as the only one which is 100% focused on end to end #Auto sector requirements
#NB10x
(7/16)
#KPIT #Fundamentals
*ROCE: 14%
*ROE: 12.6%
*PE: 66
*Face Value: INR 10
*Promoter Holding: 40.1%
*Debt to Equity: 0.17
*Free Cash Flow 3Yrs: INR 1014 Cr
#NB10x
(8/16)
*ROCE: 14%
*ROE: 12.6%
*PE: 66
*Face Value: INR 10
*Promoter Holding: 40.1%
*Debt to Equity: 0.17
*Free Cash Flow 3Yrs: INR 1014 Cr
#NB10x
(8/16)
#KPIT #RevenueSource
*Revenue by market
-USA (42%)
-Europe (41%)
-RoW (17%)
*Revenue by practice
-Powertrain (39%)
-AD-DAS / Autonomous Driving (21%)
-Connected(11%)
-Others (29%)
#NB10x
(9/16)
*Revenue by market
-USA (42%)
-Europe (41%)
-RoW (17%)
*Revenue by practice
-Powertrain (39%)
-AD-DAS / Autonomous Driving (21%)
-Connected(11%)
-Others (29%)
#NB10x
(9/16)
#KPIT #USP
*7k+ domain expertise employees & hiring 2k next year
*S/w Integration partner to Global Auto leaders
*Billions of lines of code on 100’s of vehicles with models on road
*Expertise in Autonomous Driving, Powertrain Electrification, AUTOSAR & Diagnostics
#NB10x
(10/16)
*7k+ domain expertise employees & hiring 2k next year
*S/w Integration partner to Global Auto leaders
*Billions of lines of code on 100’s of vehicles with models on road
*Expertise in Autonomous Driving, Powertrain Electrification, AUTOSAR & Diagnostics
#NB10x
(10/16)
#KPIT #Acquisition
#PathPartner
*Design service & solution provider of OS S/w & low-level S/w for Automotive, Camera, Radar & Multimedia devices
#FutureMobility
*S/w & feature development in Autonomous Driving, ADAS & vehicle safety & integration + validation
#NB10x
(11/16)
#PathPartner
*Design service & solution provider of OS S/w & low-level S/w for Automotive, Camera, Radar & Multimedia devices
#FutureMobility
*S/w & feature development in Autonomous Driving, ADAS & vehicle safety & integration + validation
#NB10x
(11/16)
#KPIT #Partnership
#dSPACE for EV charging solution
*Brings together the H/w & S/w competencies of dSPACE + KPIT
#dSPACE & #Microsoft to offer homologation solution in USA
*One stop solution for easy Certification for autonomous vehicles
#NB10x
(12/16)
#dSPACE for EV charging solution
*Brings together the H/w & S/w competencies of dSPACE + KPIT
#dSPACE & #Microsoft to offer homologation solution in USA
*One stop solution for easy Certification for autonomous vehicles
#NB10x
(12/16)
#KPIT #GrowthTriggers
*Focus on #HydrogenCell
-May lead to profit growth of 18 to 20% in FY22
-Sentient Labs a startup incubated by #KPIT demonstrated India’s first truly indigenously developed Hydrogen Fuel Cell Bus
#NB10x
(13/16)
*Focus on #HydrogenCell
-May lead to profit growth of 18 to 20% in FY22
-Sentient Labs a startup incubated by #KPIT demonstrated India’s first truly indigenously developed Hydrogen Fuel Cell Bus
#NB10x
(13/16)
#KPIT #GrowthTriggers
*Semiconductor (SM)
-Current entry-level car have 15-20 SM while high-end connected car could have 100+
-EV will require hundreds, if not thousands of SM
-Electronics, which was 30% of vehicle cost in 2010 is expected to be 50% by 2030
#NB10x
(14/16)
*Semiconductor (SM)
-Current entry-level car have 15-20 SM while high-end connected car could have 100+
-EV will require hundreds, if not thousands of SM
-Electronics, which was 30% of vehicle cost in 2010 is expected to be 50% by 2030
#NB10x
(14/16)
#KPIT #Technicals
*KPIT is already 4x from INR 125 on 1st Jan 2021 to INR 600 today
*Despite recent #Bearish market sentiments, KPIT has remained strong
*Technical chart shows the tendency to spike every quarter during Quarterly earnings & then consolidate
#NB10x
(15/16)
*KPIT is already 4x from INR 125 on 1st Jan 2021 to INR 600 today
*Despite recent #Bearish market sentiments, KPIT has remained strong
*Technical chart shows the tendency to spike every quarter during Quarterly earnings & then consolidate
#NB10x
(15/16)
#KPIT
Based on 3x R&D spends on CASE & Hydrogen Cell cars with L4 + L5 Automation
My assumption for #FY25
*Sales growth +20% YoY = INR 4200+ Cr
*Margins will improve & EPS growth +25% YoY = INR 20
*Stock price = INR 1500 to 1800 or 3x from today
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Raket" aria-label="Emoji: Raket">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Raket" aria-label="Emoji: Raket">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Raket" aria-label="Emoji: Raket">
#NB10x
(16/16)
Based on 3x R&D spends on CASE & Hydrogen Cell cars with L4 + L5 Automation
My assumption for #FY25
*Sales growth +20% YoY = INR 4200+ Cr
*Margins will improve & EPS growth +25% YoY = INR 20
*Stock price = INR 1500 to 1800 or 3x from today
#NB10x
(16/16)