KFin Technologies shares soar more than 7% to new all-time high on solid Q1 earnings, up 186% in 16 months

Shares of KFin Technologies, a leading technology-driven financial services platform, continued their upward trend for a fourth straight session on Monday. The stock rose 7.5% to an all-time high ₹833 per share, following the company’s strong performance in the June quarter. The results were driven by new contract wins, growth in revenue and profitability, and margin expansion across segments.

On Friday, after the end of the stock exchange session, the company announced its results for the June quarter, showing a net profit of ₹68.07 crore, up 57% over net profit ₹43.38 crore during the same period last year. The operating income for the quarter stood at ₹237 crore, up 30.9% year-on-year.

The company’s average assets under management (AAUM) grew by 41.3% year-on-year in Q1 FY25, outpacing the industry growth rate of 36.9%. It holds 32.3% of the overall AAUM market share and 33.4% of the AAUM stock market share. The company secured significant contracts during the quarter, including a data lake contract from a major AMC, contracts from two clients AMC and AMFI for digital asset development, and a fund data services contract from a fintech platform.

The firm added 248 corporate clients in Q1 FY25, taking its total client base to 6,319 and holds a 46.4% market share among NSE 500 companies. Moreover, KFin Tech managed 26.3% of major IPOs in terms of issue size and achieved a 33.3% market share in terms of number of IPOs in Q1 FY25, according to the company’s earnings report.

The National Pension System (NPS) saw its subscriber base grow by 26.9% year-on-year, compared with an industry growth of 12.0%, adding 41,744 subscribers in Q1 FY25 and reaching a total subscriber base of 1.3 million.

The company’s market share across its subscriber base increased to 8.4% as of June 30, 2024, from 7.4% a year earlier.

Overall, KFin Tech continues to demonstrate strong growth and market leadership in both investor and issuer solutions. The company’s strategic expansions in corporate client acquisition, significant market share in AAUM, and dominance in IPO management underscore its solid performance and strategic positioning in the financial services industry.

KFin Tech is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds, wealth managers, pensions and corporate issuers. It is also one of the three operational central registrars for the National Pension System in India.

The company’s shares were listed on the Indian Stock Exchange in December 2022. After a lacklustre performance in the first four months, the company embarked on an uptrend that has continued into the current month, resulting in a cumulative gain of 186% in 16 months.

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