KFin Technologies Ltd
KFin Technologies Ltd
Financial Services F&OKFin Technologies Limited is a leading technology-driven financial services platform. The company provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.[1]
KFin Technologies is a debt-free, high-ROE compounder with 22% sales CAGR over 3 and 5 years, supported by 83% analyst buy ratings. However, the stock trades at a rich 45.5x PE and 9.3x book value after a 31% correction in the past year, warranting patience on entry.
Key Fundamentals
SmallcapRTACapital MarketsTechnical Indicators
Key Insights
Strengths
3- Company is almost debt free.
- Company has delivered good profit growth of 49.5% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 46.3%
Weaknesses
3- Stock is trading at 9.10 times its book value
- Promoter holding has decreased over last 3 years: -26.6%
- Working capital days have increased from 59.9 days to 115 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoKFin Technologies is a debt-free, high-ROE compounder with 22% sales CAGR over 3 and 5 years, supported by 83% analyst buy ratings. However, the stock trades at a rich 45.5x PE and 9.3x book value after a 31% correction in the past year, warranting patience on entry.
- Company is almost debt-free, providing strong balance sheet resilience and financial flexibility in a capital-light business model
- Delivered exceptional 49.5% CAGR profit growth over the last 5 years, demonstrating sustained earnings compounding
- Consistent ROE of 23-25% over the last 3-5 years indicates high-quality capital allocation and durable competitive advantages
- 83.33% of analysts (15 out of 18) have a buy rating with zero sell ratings, reflecting strong institutional conviction
- Compounded sales growth of 22% over both 3-year and 5-year periods shows revenue visibility and structural demand tailwinds in financial services infrastructure
- Healthy dividend payout ratio of 46.3% with 1.33% yield signals shareholder-friendly management and cash generation confidence
- TTM revenue growth of 19% remains robust, indicating the business continues to scale despite market volatility
- Asset-light, platform-based business model serving mutual funds and capital markets benefits from India's financialization megatrend
- Stock trades at 9.33x book value, which is expensive even for a high-quality compounder and leaves limited margin of safety
- Stock price has declined 31% over the past 1 year, signaling significant de-rating or growth concerns by the market
- Promoter holding has decreased by 26.6% over the last 3 years, raising governance and alignment concerns
- Working capital days have nearly doubled from 59.9 days to 115 days, indicating potential deterioration in cash conversion efficiency
- PE ratio of 45.5x is demanding and prices in significant future growth, leaving the stock vulnerable to any earnings miss
- TTM profit growth of 11% has decelerated sharply from the 5-year CAGR of 50%, suggesting earnings momentum is fading
- Market cap of Rs 15,471 crore on current earnings growth trajectory may face multiple compression risk if growth slows further
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Potential ₹200Cr order inflow Jun 18
KFin Technologies may receive a ₹200 crore order with recurring monthly orders of ₹20-30 crore, representing a meaningful addition to the business pipeline.
- USD 2M Singapore expansion Jun 10
Board approved capital infusion of up to USD 2 million in its wholly owned Singapore subsidiary for international business expansion, to be deployed in one or more tranches.
- Institutional investor roadshows Jun 10
Participating in non-deal roadshows in Hong Kong and Singapore from June 15-19, 2026, organized by Investec, signaling active engagement with global institutional investors.
- Analyst meets scheduled Jun 15
Virtual analyst meets held on June 8 and June 18, 2026 (with TA Associates), with presentations aligned to April 29 disclosures.
- Record date for FY26 dividend Jun 15
Record date set for July 15, 2026 for final dividend; AGM scheduled for July 22, 2026.
- Promoter shares unencumbered Jun 15
Promoters confirmed zero encumbrance on equity shares as of March 31, 2026, covering FY2025-26.
TL;DR: KFin Technologies is showing steady momentum with a potential ₹200 crore order pipeline and active international expansion via its Singapore subsidiary. No headwinds are visible in recent news flow, and corporate governance signals remain clean with unencumbered promoter holdings. The company is proactively engaging global institutional investors through roadshows, suggesting confidence in its growth narrative. The trend is stable-to-positive, with the order confirmation being the key near-term catalyst to watch.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 183 | 182 | 209 | 219 | 228 | 238 | 280 | 290 | 283 | 274 | 309 | 371 | 347 |
| Expenses | 99 | 112 | 116 | 121 | 125 | 138 | 154 | 159 | 160 | 160 | 174 | 219 | 219 |
| Operating Profit | 84 | 70 | 93 | 98 | 104 | 100 | 127 | 131 | 122 | 114 | 136 | 152 | 128 |
| OPM % | 46% | 39% | 45% | 45% | 45% | 42% | 45% | 45% | 43% | 41% | 44% | 41% | 37% |
| Other Income | 6 | 5 | 6 | 6 | 7 | 8 | 11 | 9 | 10 | 10 | 11 | -2 | 11 |
| Interest | 3 | 3 | 3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 11 | 12 | 13 | 13 | 15 | 15 | 17 | 16 | 17 | 18 | 18 | 23 | 27 |
| PBT | 76 | 60 | 84 | 89 | 94 | 92 | 119 | 122 | 114 | 105 | 127 | 125 | 111 |
| Tax % | 25% | 28% | 27% | 25% | 21% | 26% | 25% | 26% | 26% | 26% | 26% | 27% | 27% |
| Net Profit | 57 | 43 | 61 | 67 | 74 | 68 | 89 | 90 | 85 | 77 | 93 | 92 | 81 |
| EPS in Rs | 3.37 | 2.55 | 3.61 | 3.92 | 4.36 | 3.97 | 5.21 | 5.25 | 4.94 | 4.49 | 5.42 | 5.33 | 4.7 |
Profit & Loss
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 162 | 450 | 481 | 640 | 720 | 838 | 1,091 | 1,301 |
| Expenses | 97 | 291 | 269 | 352 | 422 | 473 | 612 | 773 |
| Operating Profit | 66 | 159 | 212 | 288 | 298 | 364 | 479 | 529 |
| OPM % | 40% | 35% | 44% | 45% | 41% | 43% | 44% | 41% |
| Other Income | 2 | 5 | 5 | 6 | 17 | 25 | 38 | 30 |
| Interest | 20 | 53 | 52 | 53 | 11 | 9 | 5 | 5 |
| Depreciation | 34 | 92 | 98 | 37 | 47 | 53 | 64 | 86 |
| PBT | 14 | 19 | 68 | 204 | 258 | 327 | 448 | 468 |
| Tax % | 35% | 76% | 196% | 27% | 24% | 25% | 26% | 27% |
| Net Profit | 9 | 5 | -65 | 149 | 196 | 246 | 333 | 344 |
| EPS in Rs | 0.54 | 0.3 | -4.28 | 8.87 | 11.57 | 14.39 | 19.33 | 19.92 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 40% | 39% | 60% |
Balance Sheet
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 166 | 151 | 151 | 168 | 169 | 171 | 172 | 173 |
| Reserves | 353 | 259 | 196 | 477 | 701 | 970 | 1,236 | 1,501 |
| Borrowings | 435 | 413 | 383 | 160 | 160 | 49 | 47 | 55 |
| Other Liabilities | 68 | 46 | 194 | 222 | 220 | 229 | 296 | 1,045 |
| Total Liabilities | 1,022 | 868 | 923 | 1,026 | 1,250 | 1,418 | 1,750 | 2,774 |
| Fixed Assets | 732 | 691 | 630 | 669 | 691 | 764 | 803 | 1,834 |
| CWIP | 0 | 0 | 3 | 35 | 40 | 37 | 29 | 5 |
| Investments | 112 | 14 | 95 | 93 | 229 | 150 | 462 | 239 |
| Other Assets | 178 | 163 | 196 | 230 | 291 | 467 | 456 | 695 |
| Total Assets | 1,022 | 868 | 923 | 1,026 | 1,250 | 1,418 | 1,750 | 2,774 |
Cash Flow
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Operating | 63 | 101 | 205 | 253 | 223 | 289 | 399 | 370 |
| Investing | -816 | 94 | -104 | -115 | -204 | -178 | -322 | -203 |
| Financing | 775 | -206 | -89 | -115 | 7 | -127 | -95 | -134 |
| Net Cash Flow | 23 | -11 | 11 | 22 | 27 | -15 | -18 | 33 |
| Free Cash Flow | 58 | 94 | 175 | 185 | 154 | 204 | 313 | 259 |
| CFO/OP | 124 | 83 | 98 | 105 | 94 | 97 | 103 | 90 |
Ratios
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 198 | 72 | 84 | 64 | 64 | 66 | 64 | 76 |
| Cash Conversion Cycle | 198 | 72 | 84 | 64 | 64 | 66 | 64 | 76 |
| Working Capital Days | -13 | 16 | 5 | 22 | -34 | 34 | 31 | 115 |
| ROCE % | — | 8% | 15% | 34% | 29% | 30% | 33% | 30% |
Documents
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Company Information
KFin Technologies Limited is a leading technology-driven financial services platform. The company provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.[1]