KPIT Technologies shares dipped by 14 per cent and hit 52 week low

Shares of KPIT Technologies tanked almost 14 per cent on Thursday and touched fresh 52 week low of Rs 85.05 in BSE, which closed at Rs 99.15 on Wednesday. Also, company shares saw increase in volume with almost 22 lakh shares traded on the BSE in the morning trade as compared to a 2-week average of 1.26 lakh. We will see the reason of the sudden fall.

KPIT Technologies headquartered in Pune is a provider of software development, IT consulting and product engineering solutions. The Company offers solutions to automotive and transportation, manufacturing and energy, and utilities verticals. KPIT’s application services include companies like Oracle, SAP, Microsoft. Its Business consulting services include digital transformation, business process management, enterprise manufacturing management, supply chain planning and execution, extended product lifecycle management and industry specific solutions.

KPIT Technologies Q4FY15 results were disappointing. The company’s consolidated net profit of Q4 was at Rs 50.31 crore, which was down by 17.93 per cent as compared to Rs 61.30 crore in the corresponding quarter a year ago. Thereafter, the share price of the company tanked 36 per cent to Rs 99.15 on 24^th June 2015, which was Rs 155.05 on 28^th April 2015. On 25^th June 2015 rumors broke out in media that the promoters as well as institutional investors are looking to sell their stake in the company and about the cancellation of dividend. As a result of the media rumors share prices of the company had seen worst sell off and tanked 14 per cent in intraday trade on Thursday.

As per the clarification given to BSE by the company, neither the promoters nor foreign institutional investors (FIIs) and domestic investors (DIIs) are selling their stakes in the company. They also clarified that KPIT would pay out dividends on time, which was proposed to the shareholders at the rate of 55 per cent which comes to Rs 1.10 per share.

According to the financial reports of FY15, submitted to the BSE, the promoters hold 21.67 per cent stake of the company, while institutions (includes FII and DII) hold 42.35 per cent and non-Institutions hold 35.98 per cent stake of the company.