Nuvama Institutional Equities Reiterates 'Buy' on KFin Technologies with Rs 1,480 Target Despite Stock Dip

Brokerage Reports

29th October 2025, 5:58 AM

Nuvama Institutional Equities Reiterates 'Buy' on KFin Technologies with Rs 1,480 Target Despite Stock Dip

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Stocks Mentioned :

KFin Technologies Limited

Short Description :

Nuvama Institutional Equities has maintained its 'Buy' rating on KFin Technologies with a target price of Rs 1,480, suggesting a 26.6% potential upside. This comes despite a recent 5.3% fall in the stock. The brokerage highlighted KFin Technologies' strong Q2 FY26 performance, including 10.3% year-on-year revenue growth, driven by its Mutual Funds segment and expanding Issuer Solutions due to increased IPO activity. The company also saw significant client additions and market share gains.

Detailed Coverage :

Nuvama Institutional Equities has reaffirmed its 'Buy' recommendation for KFin Technologies, setting a target price of Rs 1,480. This price point represents a potential upside of 26.6% from its current market valuation, indicating strong confidence from the brokerage. This positive outlook persists even though KFin Technologies' share price experienced an intra-day dip of 5.3%.

The firm's analysis is based on KFin Technologies' robust financial results for the second quarter of FY26. Revenue saw a substantial increase of 10.3% year-on-year (YoY), reaching Rs 309.2 crore. This growth was primarily fueled by a strong performance in the Mutual Funds segment, which grew by 9.9% YoY. Additionally, the Issuer Solutions business demonstrated impressive expansion, surging by 15.5% YoY to Rs 48.3 crore. This surge is attributed to a rebound in Initial Public Offerings (IPOs) and increased corporate actions.

KFin Technologies also added 597 new clients during the quarter. The company's folio count, representing investor accounts, rose by 10.5% YoY. Its market dominance is evident in the main board IPO segment, where its market share by issue size jumped significantly, by 940 basis points YoY and 2580 basis points quarter-on-quarter (QoQ), to reach 43.8%. The company continues to lead the market with a substantial 50% share among NSE 500 companies. Segmental margins also saw an improvement of 95 basis points QoQ, reaching 43.6%.

Net profit for Q2 FY26 stood at Rs 93.3 crore, a 4.5% increase compared to Rs 89.3 crore in the same period last fiscal year.

Regarding stock performance, KFin Technologies' shares have seen a minor decline of 0.6% over the last five trading sessions. Despite a 12% fall in the past six months, the stock has rewarded investors with a 16% wealth increase over the past year.

Impact: This news can positively influence investor sentiment towards KFin Technologies, potentially leading to a recovery or sustained upward movement in its stock price, given the strong brokerage backing and solid financial performance. Rating: 7/10

Difficult Terms: * Year-on-year (YoY): A comparison of financial or operational performance from one year to the next. * Quarter-on-Quarter (QoQ): A comparison of financial or operational performance from one quarter to the next. * Initial Public Offering (IPO): The first time a private company offers its shares to the public. * Basis points (bps): A unit of measure used in finance, equal to 1/100th of a percent (0.01%). For example, 100 bps is equal to 1%. * Folio count: The total number of investor accounts or holdings managed by a company. * Market share: The percentage of a market that a company controls. * Segmental margin: The profit generated by a specific business division or segment of a company.