KFin Tech: Motilal Oswal Maintains 'Neutral' Rating — Check Target Price, Potential Upside

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Motilal Oswal Report

Structural tailwinds in the MF industry are expected to drive absolute growth in KFin Technology Ltd.’s MF revenue, supported by steady AAUM expansion, resilient SIP flows, and rising contribution from VAS.

The Issuer Services segment is scaling up on strong primary market activity, higher IPO volumes, and expanding post-listing annuity revenues, providing incremental earnings upside and improving operating leverage.

The International and other investor solutions businesses, including fund administration, alternates and wealth, are benefiting from higher realizations, cross-selling opportunities, and platform integration through the Ascent acquisition, which significantly broadens KFin’s addressable market and supports medium-term margin expansion.

While yields in the domestic MF business remain structurally moderate under the telescopic pricing model, the combination of higher-margin international mandates and operating synergies from Ascent is expected to improve overall unit economics.

However, sustained re-rating will depend on KFin’s ability to scale up its international revenue, demonstrate margin normalization after the Ascent integration, and reduce reliance on domestic MF over time.

Motilal Oswal reiterates Neutral rating with a one-year target price of Rs 1,200, based on a 40x Sep’27E earnings per share.

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