Citi has upgraded KFin Technologies to a buy rating and raised its target price to ₹1,215 per share, citing the company’s strong positioning to benefit from multiple structural tailwinds in the financial services ecosystem. The brokerage highlighted that KFin is well placed to capture growth from robust mutual fund flows, expansion in alternate investment products, a rising base of international clients aided by Ascent’s global capabilities, and near-term buoyancy in primary markets.
Citi noted that unlike rival CAMS, KFin faces lower pricing pressure due to a more diversified revenue mix. Mutual fund assets under management (AUM)-linked revenues account for 45–50% of total income for KFin, compared to around 75% for CAMS. The company also has a higher share of smaller clientele, which offers a broader and more stable customer base.
KFin continues to expand its product capabilities, further driving revenue diversification and improving resilience across business segments. However, Citi cautioned that the overhang of promoter stake sale persists, with General Atlantic holding about 22.9% in the company.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
