KFin Technologies Rises to New Heights: Record Surge and Ambitious Global Expansion Plans
Shares of KFin Technologies surged over 10%, hitting a record high of Rs 1,111 each. This jump came amid heavy trading, with around 4.6 million shares changing hands on the BSE and NSE, surpassing the usual weekly average of 0.7 million.
So far this year, KFin Tech’s stock has more than doubled, climbing over 126%, a significant leap from the Nifty 50’s 15% rise, indicating a strong outperformance compared to the broader market.
In its annual report for FY24, KFin Tech unveiled ambitious plans to expand globally to reduce its dependence on the Indian market. The company anticipates that its international mutual fund business will contribute 45-50% of its revenue over the next five years. Furthermore, it projects that its revenue from value-added services (VAS) will increase from the current 6% to between 12-15% in the same period.
Over the past five years, KFin Tech has seen impressive financial growth: its revenue from operations has grown at an average annual rate of 13.7%, while profits have increased at a 25% rate. EBITDA has also grown by 20.4% annually. The company has expanded its client base to 6,071 in FY24, up from 5,363 the previous year, and the number of folios has risen by 13% year-over-year to 124 million. This consistent growth demonstrates the company’s stability and potential for future growth.
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As of now, KFin Tech is under the coverage of approximately 12 brokerage firms. Nine of these firms recommend buying the stock, two suggest selling it, and one advises holding onto it. At the current price of Rs 1,078, the stock is trading at 16.2 times its FY24 book value and 13.71 times its FY25 book value, providing a comprehensive view of its current market performance.
KFin Tech provides various technology-driven financial services, including data analytics, digital onboarding, fund accounting, and processing for mutual funds, alternative investments, and insurance investments.