Check Before You Invest : KFin Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does KFin Technologies Ltd belong to?

KFin Technologies Ltd belongs to the IT & ITES sector, operating specifically within the Depository Services segment.

Q.2 Is KFin Technologies Ltd a good quality company?

KFin Technologies Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is KFin Technologies Ltd undervalued or overvalued?

KFin Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is KFin Technologies Ltd a good buy now?

KFin Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of KFin Technologies Ltd?

KFin Technologies Ltd revenue growth is 30.2% for FY-2025, which is above its 5-year CAGR of 19.38%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of KFin Technologies Ltd?

KFin Technologies Ltd Return on capital employed is 35.5% for FY-2025, which is above its 5-year historical median of 31.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of KFin Technologies Ltd?

KFin Technologies Ltd Return on Asset is 17.94%, which is above its 5-year historical median of 14.46%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of KFin Technologies Ltd?

KFin Technologies Ltd Return on equity is 26.41% for FY-2025, which is in line with its 5-year historical median of 26.31%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of KFin Technologies Ltd?

KFin Technologies Ltd Cash conversion cycle is 19 days, below its 5-year historical median of 31 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.59	0.53
ROE	26.41	26.31
ROCE	35.5	31.37
Cash Conversion Cycle	19 days	31 days

Q.6 Gross Profit margin of KFin Technologies Ltd?

KFin Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 46.9% for FY-2025, which is above its 5-year median of 42.3%, indicating increasing margins.

Q.7 Operating Profit Margin of KFin Technologies Ltd?

KFin Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.67% for FY-2025, which is in line with its 5-year median of 43.67% indicating stable margins.

Q.8 Net Profit Margin of KFin Technologies Ltd?

KFin Technologies Ltd Net Profit Margin is 30.5% for FY-2025, is above with its 5-year median of 27.18%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	46.9	42.3
Operating Profit Margin	43.67	43.67
Net Profit Margin	30.5	27.18

Q.9 Debt to Equity ratio of KFin Technologies Ltd?

KFin Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.19, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of KFin Technologies Ltd?

KFin Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KFin Technologies Ltd?

Promoters hold 22.86% of the KFin Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KFin Technologies Ltd vs industry peers?

KFin Technologies Ltd revenue CAGR is 19.38%, compared to the industry median CAGR of 19.65%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	30.2	19.7
Gross Profit Growth	33.7	30.6
Operating Profit Growth	31.5	25.5
Net Profit Growth	35.4	31

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.59	0.45
ROE	26.41	28.83
ROCE	35.5	36.42
Cash Conversion Cycle (days)	19.03	-18

Valuation & price assessment

Q.1 Stock return of KFin Technologies Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 36.96% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	37%	-24.1%

Q.3 Valuation ratios of KFin Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	44.92	49.74	51.41
Price to Book	9.23	11.57	13.03
Price to Sales	11.86	15.21	21.30
EV to EBITDA	26.61	32.05	35.91

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