KFin Technologies: Strong Growth and Expansion Prospects Drive Share Price Surge

KFin Technologies' shares have surged over 30% in the past month, fueled by a 'Buy' recommendation from Jefferies, who cite the company's robust domestic growth (15-20% medium-term revenue growth) and significant international expansion opportunities in Southeast Asia as key drivers.

Jefferies' target price of Rs 1,530 reflects the potential of KFin Tech's international business, which is expanding rapidly with new licenses and operations in various Southeast Asian countries, including a key market in Thailand where they have received in-principle approval from the RBI to establish a subsidiary.

The company's recent achievements include joining BlackRock's 'Aladdin' network, enhancing efficiency and standardization, and handling major IPOs like Bajaj Housing Finance and Hyundai Motor India, increasing its market share among NSE 500 companies to 48.2% as of the September quarter.

KFin Tech's strong performance is further evidenced by a 25% year-on-year revenue growth in the September quarter, addition of 358 corporate clients, and a substantial increase in international business revenue (44% year-on-year growth), driven by a growing client base and strong demand, particularly in markets experiencing financialization similar to India's post-pandemic growth.