KFINTECH - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Here’s a full-spectrum analysis of KFin Technologies Ltd (KFINTECH)

📊 Core Financials

Profitability

EPS of ₹19.9 and quarterly PAT of ₹77.3 Cr (down from ₹85 Cr) — slight dip but still solid.

ROE at 26.1% and ROCE at 34.2% — excellent return metrics, indicating strong operational efficiency.

Debt & Liquidity

Debt-to-equity ratio of 0.03 — virtually debt-free, a major plus.

Dividend yield of 0.67% — modest but consistent.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 56.6 Above industry average (51.3) — slightly overvalued

P/B Ratio ~13.8 Based on Book Value ₹81.8 — rich valuation

PEG Ratio 1.84 Elevated — growth not fully justifying premium

Intrinsic Value ₹444.27 Significantly below current price — overvalued by ~39%

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🧠 Business Model & Competitive Edge

Model: SaaS-based financial services platform offering registry, compliance, data analytics, and pension services.

Strengths

High EBITDA margin (~45%)

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Strong institutional interest — FII up 5.25%, DII up 3.34%

Scalable tech infrastructure and sticky client base

Challenges

Valuation risk due to high P/E and PEG

Slight decline in quarterly profits — needs monitoring

📉 Technical & Sentiment Indicators

RSI at 29.8 — oversold zone, potential for technical rebound

MACD negative at -20.2 — bearish momentum

DMA50 and DMA200 above current price — short-term downtrend

Volume below average — subdued trading interest

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹1,075–₹1,115 — near RSI support and DMA200

Stop Loss: ₹1,045 (daily close)

Targets: ₹1,210 short-term, ₹1,300 medium-term

Long-Term Holding: Attractive for growth-focused investors. Strong fundamentals and low debt make it a solid pick if valuation cools. Ideal for a 3–5 year horizon.

Want to explore how it compares with CAMS or other fintech players in the registry space? I can pull that up too.

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