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KFin Technologies: ICICI Securities Upgrades Stock To 'Buy' But Trims Target Price — Here's Why

ICICI Securities said the investment thesis on KFIN Technologies remains intact, underpinned by multiple long-term growth drivers.

KFin Technologies: ICICI Securities Upgrades Stock To 'Buy' But Trims Target Price — Here's Why
KFin's strategic initiatives, including the partnership with BlackRock's Aladdin provider network and the recent acquisition of Ascent, are viewed as meaningful growth levers going forward.
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STOCKS IN THIS STORY
KFin Technologies Ltd
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

ICICI Securities said the investment thesis on KFIN Technologies Ltd. remains intact, underpinned by multiple long‑term growth drivers.

  1. The brokerage continues to see strong growth in the Indian mutual fund industry, supported by structural factors and regulatory initiatives such as SEBI's introduction of new asset classes. 
  2. In addition, ICICI Securities highlighted the robust outlook for the corporate issuer business and
  3. high growth potential in KFIN's international and AIF segments as key pillars of the medium‑term story.

Strategic initiatives, including the partnership with BlackRock's Aladdin provider network and the recent acquisition of Ascent, are viewed as meaningful growth levers going forward.

ICICI Securities has valued KFIN at a 35x multiple on FY28E EPS of Rs 30, lower than the earlier 38x multiple, and has revised the target price to Rs 1,050 from Rs 1,180 and has upgraded the stock to 'Buy' from earlier 'Add' rating.

The brokerage noted that the multiple reduction factors in the full consolidation of Ascent's financials, even though KFIN currently holds a 51% stake and plans to increase ownership to ~67% by FY28E.

Key risks include cut in MF yields with size.

Click on the attachment to read the full report:

Icici Securities Kfin Tech Update.pdf
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