By Malvika Gurung
Investing.com — Shares of the automotive software services firm KPIT Technologies Ltd (NS:) surged 12.46% to Rs 709 apiece at 1:45 pm on Friday, after surging over 19% to hit an all-time high of Rs 749 apiece in today’s session.
The stock has extended gains for the second consecutive session and has risen 18% in two days. Shares of KPIT Tech have seen increasing demand after foreign brokerage Goldman Sachs (NYSE:) initiated a Buy call on the stock with a target price at Rs 1,040 apiece.
The brokerage has assigned the stock 12 months to reach the target price, an upside of 46.7% compared to the stock’s present price.
It stated that the auto software company would benefit as industries are increasing inclination towards electric vehicles, and will witness a potential demand from various buyers enveloping electric vehicles and manufacturers and semiconductor makers.
The amount spent by auto companies on the new-age CASE technology is estimated to grow three-fold to $61 billion by FY27, and KPIT Tech is well-positioned to accelerate this transition, adds Goldman Sachs.
Besides, the company has also partnered with the German company dSPACE GmbH to develop a test suite for smart charging EVs.
KPIT Tech has raised its revenue and profit outlook for FY22 by 2%, to 20%, along with its EBITDA outlook to over 17.5%. In a recent interview with CNBC TV-18, the company stated that it pegs its growth margin to rise 18-20% by FY25.