Stock Analysis

₹1,255 - That's What Analysts Think KFin Technologies Limited (NSE:KFINTECH) Is Worth After These Results

NSEI:KFINTECH
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Shareholders might have noticed that KFin Technologies Limited (NSE:KFINTECH) filed its full-year result this time last week. The early response was not positive, with shares down 2.4% to ₹1,198 in the past week. It was a workmanlike result, with revenues of ₹11b coming in 2.9% ahead of expectations, and statutory earnings per share of ₹19.27, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

earnings-and-revenue-growth
NSEI:KFINTECH Earnings and Revenue Growth May 2nd 2025

Taking into account the latest results, the consensus forecast from KFin Technologies' 16 analysts is for revenues of ₹13.1b in 2026. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 15% to ₹22.14. In the lead-up to this report, the analysts had been modelling revenues of ₹12.8b and earnings per share (EPS) of ₹22.36 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

See our latest analysis for KFin Technologies

The consensus price target increased 5.1% to ₹1,255, with an improved revenue forecast carrying the promise of a more valuable business, in time. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values KFin Technologies at ₹1,550 per share, while the most bearish prices it at ₹820. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that KFin Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for KFin Technologies going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for KFin Technologies you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.