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KFin Technologies bags 'buy' call from Jefferies, analysts foresee 19%

Analysts at Jefferies said KFin Tech is at an inflexion point to monetise investments in overseas markets

February 21, 2024 / 08:36 IST
The stock of this midcap tech-driven financial services company has surged over 15 percent in the past one month, as against 2 percent rise in the benchmark Sensex
     
     
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    Global brokerage firm Jefferies has shared a "buy" call for KFin Technologies with a target price of Rs 760 a share, implying an upside of 19 percent from last close.

    Analysts at the brokerage house said higher growth from international operations and value added services would aid more growth in FY25-26.

    The stock of the midcap tech-driven financial services company has surged more than 15 percent in the past month against a 2 percent rise in the benchmark Sensex.

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    Analysts said KFintech is at an inflexion point to monetise investments in overseas markets.

    "We see the company breaking into larger markets like Singapore or Hong Kong and believe that stronger cash flows will anchor inorganic opportunities.

    “The higher growth from international operations, value added or analytics services should drive higher growth in FY25-26. We raise earnings per share (EPS) estimate by 2-4 percent," the brokerage firm added.

    Earlier, analysts at ICICI Securities upgraded KFintech to “buy” with a target price of Rs 754 based on a stronger growth outlook in domestic mutual fund, issuer business, and client wins.

    ALSO READ: KFin Technologies clocks 25% growth in Q3 profit at Rs 67 crore

    "We expect KFintech's operating revenue to register CAGR of 17.2 percent between FY23-26E and overall PAT to clock 23 percent CAGR through FY23-26E," the brokerage firm said.

    In Q3FY24, KFintech's consolidated net profit rose 25.2 percent year-on-year (YoY) to Rs 67 crore, while consolidated revenue from operations grew 16.3 percent YoY to Rs 218.7 crore.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    first published: Feb 21, 2024 08:36 am

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