KFintech rallies 10% on healthy outlook; stock zooms 131% so far in 2024

Over the next 5 years, the non-domestic MF biz would account for 45%-50% of the company's overall revenue led by faster growth in the Int'l investor solutions and AIF, PMS, and PWM solutions biz.

KFin Technologies shares in focus: Shares of KFin Technologies (KFintech) hit a record high of Rs 1,111.65 per share, surging 10 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes on healthy business outlook. The share surpassed its previous high of Rs 1,090.85 touched on August 9, 2024.

At 10:46 AM, the share was trading 6 per cent higher at Rs 1,072, as compared to 0.03 per cent gain in the BSE Sensex. The counter saw huge trading volumes, with a combined 3.7 million equity shares changing hands on the NSE and BSE.

In the past one month, KFintech has rallied 44 per cent after the company reported a 56.9 per cent year-on-year (YoY) jumped in profit after tax (PAT) at Rs 68.07 crore. Meanwhile, revenue from operations grew 30.9 per cent Y-o-Y at Rs 237.56 crore. 

Thus far in the calendar year 2024, the share price of KFintech has more than doubled or zoomed 131 per cent. In comparison, the BSE Sensex managed to gain 13 per cent.

The management said KFintech gained major traction in new contract sign ups in the fast-growing business lines of global fund services (international), alternatives and wealth solutions, fund administration solutions, and technology solutions. 

KFintech 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. 

The company provides comprehensive investor solutions including transfer agency, fund administration, fund accounting, data analytics, digital onboarding, transaction origination and processing for alternate investments, mutual funds, unit trusts, insurance investments, and private retirement schemes to global asset managers in Malaysia, Philippines, Singapore, Hong Kong, Thailand, and Canada. It is uniquely placed to leverage the growing opportunity within the Indian financial asset market as well as well poised to establish its global footprints, which will lead to a sustainable trajectory of growth and profitability.

KFintech's international and other investor solutions segment comprises young and sunrise businesses which are growing at a much faster pace, and will continue to outpace the growth the management sees in its mature businesses. 

“Our aspiration to become a global fund administrator will help us to reduce our dependency on the domestic capital market,” KFintech said in its FY24 annual report.

Over the next five years, the non-domestic mutual fund businesses would account for 45 per cent–50 per cent of the company’s overall revenue from operation led by faster growth in the International investor solutions and AIF, PMS, and PWM solutions businesses. 

Additionally, VAS revenue would grow at a faster pace, and is likely to increase from the current 6 per cent of the overall revenue from operation to 12 per cent–15 per cent over the next five years. This will be driven by the growing demand for unique and wide range of products and solutions for the broader financial services industry and ability to cross-sell and up-sell to increase wallet share from the existing clients, the company said.