Stock Analysis

Here's What Analysts Are Forecasting For KFin Technologies Limited (NSE:KFINTECH) After Its First-Quarter Results

NSEI:KFINTECH
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Investors in KFin Technologies Limited (NSE:KFINTECH) had a good week, as its shares rose 8.9% to close at ₹799 following the release of its quarterly results. KFin Technologies reported in line with analyst predictions, delivering revenues of ₹2.4b and statutory earnings per share of ₹3.94, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for KFin Technologies

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NSEI:KFINTECH Earnings and Revenue Growth July 30th 2024

After the latest results, the twelve analysts covering KFin Technologies are now predicting revenues of ₹10.0b in 2025. If met, this would reflect a decent 8.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 15% to ₹18.14. Before this earnings report, the analysts had been forecasting revenues of ₹9.99b and earnings per share (EPS) of ₹17.83 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹775. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic KFin Technologies analyst has a price target of ₹930 per share, while the most pessimistic values it at ₹540. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that KFin Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past year. Compare this to the 289 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while KFin Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the 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, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹775, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple KFin Technologies analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with KFin Technologies .

Valuation is complex, but we're here to simplify it.

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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.