Shares of KFin Technologies, a leading technology-driven financial services platform, continued their upward trend for the third consecutive session on Monday, October 13, gaining another 4.2% to the day’s high of ₹1,117.70, after global brokerage firm Citi turned bullish on the stock, citing strong mutual fund inflows and improving sentiment in primary markets.
The brokerage ‘double-upgraded’ the stock to ‘Buy’ from its earlier rating of ‘Sell’ and also raised its share price target to ₹1,215 from ₹1,100 earlier, indicating an upside potential of 10.4% from the stock’s previous closing level.
Citi believes the company is well positioned to benefit from robust mutual fund inflows, expansion in alternate assets, a rising international client base aided by Ascent’s global capabilities, and near-term buoyancy in primary markets.
Earlier, Jefferies also noted that Ascent Fund Services will aid KFin’s global portfolio as a registrar and transfer agent platform and reiterated its “buy” rating with a price target of ₹1,460.
Unlike CAMS, Citi said KFin faces lower pressure from telescopic pricing, as mutual fund AUM-linked revenues contribute around 45–50% of overall revenues compared to nearly 75% for CAMS. Additionally, it also noted that the company has a higher share of smaller clientele, which provides greater pricing stability. The company continues to enhance its product capabilities, further driving revenue diversification.
However, the brokerage noted that the overhang of a promoter stake sale remains, with General Atlantic currently holding 22.9% in KFin Technologies.
KFin Technologies shares the price trend
The company’s shares have recovered some lost ground in recent weeks following a sharp sell-off in July and August. They are up 6% in October so far, after closing September with a mild gain of 3%. From their all-time high of ₹1,641, reached in December 2024, the shares are currently down by 32%.
However, the shares are trading 207% higher than their issue price of ₹366 apiece.
For the first quarter of FY26, the company reported a 3% drop in revenue to ₹274.5 crore, while EBITDA fell 7% year-on-year to ₹113.8 crore. The margin for the quarter stood at 41.5%, compared to 43.25% in the previous quarter, although it was better than expectations of 40.7%.
All three business segments saw a decline in margins, with the international solutions business narrowing by 1,581 basis points. On the bottom line, the company reported a net profit of ₹77 crore, compared to ₹68 crore in the same period last year.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
