Stock Analysis

KFin Technologies Limited (NSE:KFINTECH) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

NSEI:KFINTECH
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KFin Technologies Limited (NSE:KFINTECH) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to ₹1,165 in the week after its latest third-quarter results. Revenues of ₹2.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹5.21, missing estimates by 2.9%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for KFin Technologies

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NSEI:KFINTECH Earnings and Revenue Growth January 26th 2025

Following the latest results, KFin Technologies' 14 analysts are now forecasting revenues of ₹12.9b in 2026. This would be a sizeable 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 27% to ₹23.83. In the lead-up to this report, the analysts had been modelling revenues of ₹12.8b and earnings per share (EPS) of ₹23.70 in 2026. 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.

There were no changes to revenue or earnings estimates or the price target of ₹1,201, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values KFin Technologies at ₹1,750 per share, while the most bearish prices it at ₹820. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We can infer from the latest estimates that forecasts expect a continuation of KFin Technologies'historical trends, as the 16% annualised revenue growth to the end of 2026 is roughly in line with the 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although KFin Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,201, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on KFin Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for KFin Technologies going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with KFin Technologies , and understanding this should be part of your investment process.

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

Discover if KFin Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.