KFin Technologies Ltd - Stock Valuation and Financial Performance

BSE: 543720 | NSE: KFINTECH | Depository Services | Small Cap

KFin Technologies Share Price

625.90 -5.30 -0.84%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on KFin Technologies

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

KFin Technologies stock performance -

mw4me loader
P/E Ratio (CD):
46.75
Market Cap:
10,686.8 Cr.
52-wk low:
287.2
52-wk high:
731.1

Is KFin Technologies Ltd an attractive stock to invest in?

1. Is KFin Technologies Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that KFin Technologies Ltd is a average quality company.

2. Is KFin Technologies Ltd undervalued or overvalued?

The key valuation ratios of KFin Technologies Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is KFin Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of KFin Technologies Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of KFin Technologies:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
KFin Technologies Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2.6%4.9%-3.7%25.5%23%-
Value Creation
Index
-0.8-0.6-1.30.90.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 162450481640720792
Sales YoY Gr.-177%7%32.9%12.6%-
Adj EPS 0.60.3-4.28.911.613.4
YoY Gr.--49.1%-1610.7%NA30%-
BVPS (₹) 31.32722.837.750.661.8
Adj Net
Profit
9.24.2-63.7149196229
Cash Flow from Ops. 63.2101204253223-
Debt/CF from Ops. 6.23.71.70.50.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA17%12.6%
Adj EPS NANA245.6%30%
BVPSNANA23.2%34%
Share Price - - - 111.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1.80.9-16.930.125.823.8
Op. Profit
Mgn %
40.635.344.4454143.7
Net Profit
Mgn %
5.70.9-13.323.327.228.9
Debt to
Equity
0.80.910.20.2-
Working Cap
Days
0154197195208121
Cash Conv.
Cycle
04547313365

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 23.80%

Sales growth is growing at healthy rate in last 3 years 16.97%

Net Profit is growing at healthy rate in last 3 years 245.62%

Sales growth is good in last 4 quarters at 10.29%

No data to display

Latest Financials - KFin Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 13.4 13.4
TTM Sales (₹ Cr.) 764 792
BVPS (₹.) 62 61.8
Reserves (₹ Cr.) 889 886
P/BV 10.08 10.11
PE 46.53 46.75
From the Market
52 Week Low / High (₹) 287.20 / 731.10
All Time Low / High (₹) 271.05 / 731.10
Market Cap (₹ Cr.) 10,687
Equity (₹ Cr.) 171
Face Value (₹) 10
Industry PE 54.7

Management X-Ray of KFin Technologies:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of KFin Technologies

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Sales162450481640720
Operating Expenses 97291269352425
Manufacturing Costs26544
Material Costs00000
Employee Cost 65194189232289
Other Costs 309175116131
Operating Profit 66159212287295
Operating Profit Margin (%) 40.4%35.3%44.2%44.9%41.0%
Other Income 255721
Interest 2053525311
Depreciation 3492983747
Exceptional Items 00000
Profit Before Tax 141968204258
Tax 5141325562
Profit After Tax 95-65149196
PAT Margin (%) 5.5%1.0%-13.4%23.2%27.2%
Adjusted EPS (₹)0.50.3-4.38.911.6
Dividend Payout Ratio (%)0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 519408344632856
Share Capital 166151151168169
Reserves 353257193465686
Minority Interest00000
Debt373343294123130
Long Term Debt3733432941230
Short Term Debt0000130
Trade Payables2220252626
Others Liabilities 156159399432484
Total Liabilities 1,0719311,0621,2121,496

Fixed Assets

Gross Block763814849924982
Accumulated Depreciation30122219255291
Net Fixed Assets732691630669691
CWIP 0033540
Investments 112149593229
Inventories00000
Trade Receivables8888111113127
Cash Equivalents 5418234587
Others Assets85120201258322
Total Assets 1,0719311,0621,2121,496

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 63101204253223
PBT 141968204258
Adjustment 5214714910247
Changes in Working Capital 15-34-10-3-26
Tax Paid -18-30-3-50-56
Cash Flow From Investing Activity -86493-103-115-204
Capex -5-7-30-68-69
Net Investments -48123-76-28-150
Others -811-223-1915
Cash Flow From Financing Activity 775-206-89-1157
Net Proceeds from Shares 413003100
Net Proceeds from Borrowing 00000
Interest Paid -1-65-46-390
Dividend Paid 00000
Others 363-141-44-3867
Net Cash Flow -26-12122226
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)1.720.98-17.1730.4526.31
ROCE (%)3.768.4916.1835.2230.44
Asset Turnover Ratio0.150.450.480.560.53
PAT to CFO Conversion(x)720.2N/A1.71.14
Working Capital Days
Receivable Days19872756461
Inventory Days00000
Payable Days00000

KFin Technologies Ltd Stock News

KFin Technologies Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of KFin Technologies on 12-Apr-2024 16:59 is ₹625.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of KFin Technologies stood at ₹10,686.8.
The latest P/E ratio of KFin Technologies as of 12-Apr-2024 16:59 is 46.53.
The latest P/B ratio of KFin Technologies as of 12-Apr-2024 16:59 is 10.08.
The 52-week high of KFin Technologies is ₹731.1 and the 52-week low is ₹287.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of KFin Technologies is ₹764.4 ( Cr.) .

About KFin Technologies Ltd

The company was originally incorporated under the Companies Act, 2013 as ‘KCPL Advisory Services Private Limited’ and was granted a certificate of incorporation by the RoC on June 8, 2017. The Board of the Company approved the change in the name of the Company from ‘KCPL Advisory Services Private Limited’ to ‘Karvy Fintech Private Limited’ by their resolution dated July 22, 2017, which was thereafter approved by the Shareholders of the Company through their resolution dated July 24, 2017, and a fresh certificate of incorporation, under the Companies Act, 2013, was issued by the RoC on August 10, 2017. Pursuant to the Scheme of Amalgamation between Karvy Consultants Limited (“KCL”), Karvy Computershare Private Limited (“KCPL”) and the Company, all the assets and liabilities pertaining to the RTA business of KCL (including but not limited to the equity investment of KCL in KCPL) were demerged into the Company on a going concern basis; and KCPL was amalgamated into the Company with effect from November 17, 2018. The Board of the Company approved the change in the name of the Company from ‘Karvy Fintech Private Limited’ to ‘KFin Technologies Private Limited’ through their resolution dated November 25, 2019, which was thereafter approved by the Shareholders of the Company through their resolution dated November 30, 2019 and a fresh certificate of incorporation, under the Companies Act, 2013, was issued by the RoC on December 5, 2019. The Board of the Company approved the conversion of the Company from a ‘private limited company’ to a ‘public limited company’ through their resolution dated January 8, 2022, which was thereafter approved by the Shareholders of the Company through their resolution dated January 28, 2022. Pursuant to the conversion of the Company into a public limited company, the name of the Company was changed from ‘KFin Technologies Private Limited’ to ‘KFin Technologies Limited’, and a fresh certificate of incorporation dated February 24, 2022, was issued by the RoC.

KFin Technologies is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India and provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong. The company provides several critically important services to the Indian capital markets ecosystem. Its clients utilize its platform for its different service offerings for a substantial part of their operational requirements. It provide a wide array of investor and issuer solutions including omni-channel transaction origination and processing, channel management, which is mapping of mutual fund schemes of AMCs to distributors selected by the AMCs and related distributor management, including brokerage computation and channel servicing which includes brokerage pay-out, query solution and GST compliance assistance, customer onboarding with integrated KYC, unit allocation and redemption, reporting and compliance checks on a real time basis.

The company also offers asset servicing products including a distributor platform, an investor platform, and an online transaction platform together with data analytics. Its technology products, solutions and platforms help its clients to focus on their core business functions such as investment management and sales and marketing functions whilst entrusting bulk of operational front office, middle office and back office activities to its platform. The company has adopted a platform driven product design and delivery approach to service the varied needs of its clients. It has an end-to-end transaction management platform across multiple asset classes such as mutual fund, direct stock investments, alternate investment funds, wealth and pension across India, Malaysia, Philippines and Hong Kong. It provide its clients with a data driven technology solutions that combine its in-house platform technologies and several of its in-house value added services (VAS) products across different asset classes, including white label technology to meet client requirements.

Business area of the company

The company serves the mission-critical needs of asset managers with clients spanning mutual funds, AIFs (alternative investments), pension, wealth managers and corporates in India and abroad. The company provides SaaS based end-to-end transaction management, channel management, compliance solutions, data analytics and various other digital services to asset managers across segments, as well as outsourcing services for global players.

Key awards, accreditations or recognitions

  • 2022: The company received an award from ‘National Awards for Leadership and Excellence’, for ‘Marketing Communication - Business to Business’.
  • 2021: The company’s Managing Director and CEO i.e., Venkata Satya Naga Sreekanth Nadella received the “Global Asian of the year award” from ‘AsiaOne Magazine’.
  • 2021: The company was selected as the ‘Prestigious Rising Brands’ of India 2021-22 in the category ‘Finance and technology’ by Brands Advertising Research & Consulting Private Limited.
  • 2021: The company’s Managing Director and CEO i.e., Venkata Satya Naga Sreekanth Nadella received the “Outstanding Achievement Award for Business Excellence” from All India Achievers Foundation.
  • 2020: The company received the award for ‘Asia’s Greatest Brands 2020-2021’ from ‘Asia One’.

Major events and milestones

  • 2017: The company was incorporated as ‘KCPL Advisory Services Private Limited’.
  • 2017: The Company entered into a share subscription agreement with General Atlantic Singapore Fund Pte. Ltd. (“GASF”).
  • 2017: The Company approved the Scheme of Amalgamation between Karvy Consultants Limited, Karvy Computershare Private Limited and KCPL Advisory Services Private Limited.
  • 2018: National Company Law Tribunal, Hyderabad Bench approved the Scheme of Amalgamation.
  • 2018: The Company had issued and allotted Non-convertible Debentures (“NCDs”) to Standard Chartered Bank and Nomura Singapore Limited.
  • 2019: The Company completed a buy-back of 14,987,846 Equity Shares from General Atlantic Singapore Fund Pte. Ltd., Compar Estates and Agencies Private Limited, C. Parthasarathy - HUF, C. Parthasarathy, Adhiraj Parthasarathy and Rajat Parthasarathy.
  • 2019: Vishwanathan Mavila Nair was appointed as the Chairman of the Board.
  • 2019: The name of the Company was changed from ‘Karvy Fintech Private Limited’ to ‘KFin Technologies Private Limited’.
  • 2019: Re-classification of the promoters was approved by Board and GASF became the sole promoter of the Company.
  • 2020: Venkata Satya Naga Sreekanth Nadella was appointed as Whole Time Director & CEO.
  • 2021: The Company executed a subscription agreement and a shareholders’ agreement with Kotak Mahindra Bank Limited.
  • 2021: The Company had filed an application with the NCLT for modification in the sanctioned Scheme of Amalgamation.
  • 2021: The Company redeemed 4,000 rated, listed, redeemable, non-convertible debentures.
  • 2022: The Company converted from a private limited company to a public limited company NCLT approved the modification, pertaining to change in the accounting treatment of goodwill, in the sanctioned Scheme of Amalgamation.
  • 2022: Incorporation of KFin Global Technologies (IFSC) Limited, a wholly owned subsidiary of the Company at IFSC in Gift City, Gujarat.
  • 2022: Venkata Satya Naga Sreekanth Nadella was appointed as Managing Director and CEO.
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