KFin Technologies LtdCompany Snapshot:
Sector: Financial Services (Mutual Fund Services, RTA)
Market Cap: ₹21,000 Cr
Current Price: ₹1,239.20
Debt-to-Equity: 0.06 (very low)
ROE: 39% | ROCE: 49%
Financial Highlights:
Revenue Growth (3Y CAGR): ~22%
Profit Growth (3Y CAGR): ~32%
EBITDA Margin: ~48%
P/E Ratio: ~35x (TTM)
Industry Avg P/E: ~30-32x
Recent Price Action:
Stock broke out sharply in April 2025.
Support: ₹1,180 | Resistance: ₹1,300
RSI near 70 (mildly overbought, but momentum strong).
Key Strengths:
Dominant RTA player with 70%+ MF asset share.
Consistent cash flows and expanding international footprint.
High operating leverage driving margin expansion.
Key Risks:
Regulatory changes (SEBI reforms) could pressure fees.
High client concentration risk with top AMCs.
Valuation & Recommendation:
DCF Estimated Fair Value: ₹1,280–₹1,350
Recommendation: BUY on Dips / Accumulate
12-month Target Price: ₹1,320
Investment Horizon: 1–2 years
📈 Verdict: Strong business fundamentals, steady growth, and low debt make KFin Technologies attractive for long-term investors. Minor corrections can offer better entry points.
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