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

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..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. .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..Click on the attachment to read the full report:.Zydus Wellness Has Attractive Risk-Reward Profile, Says Motilal Oswal On 'Buy' Initiation — Check Details.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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

The brokerage highlights KFin’s strong annuity-based business model, leadership in domestic mutual fund investor solutions, and emerging international growth opportunities as key positives.

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