ICICI Securities Maintains Buy Rating on KFin Technologies, Sets Target Price at Rs 1050

KFin Technologies (KFIN) Research Report

Key Highlights

• KFIN is a preferred stock for its business growth potential, driven by core Indian MF RTA operations and likely traction in international business.
• The company has achieved continued client wins through organic and inorganic product suites across fund accounting (FA), transfer agency (TA), and wealth management (WM).

Business Outlook

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• KFIN is expected to moderate earnings due to periodic cuts in yields and cost inflation.
• However, the company is managing cost inflation through automation and efficiency.
• Diversification and continuous investment in technology remain strategic pillars to optimize growth and profitability.

Valuation and Recommendation

• We value KFIN based on a 35x multiple on FY28E EPS of 30.
• This results in a target price of INR 1,050 (earlier INR 1,180).
• The strong outlook in corporate issuer business and high growth potential in existing international and AIF business are key growth levers, supported by partnerships such as Blackrock's Aladdin provider network and recent acquisitions like Ascent.