KFin Technologies Climbs 6% After Citi Raises Rating To ‘Buy’

Shares of KFin Technologies rose as much as 6% on Monday to ₹1,137.9 after global brokerage firm Citi upgraded the stock.

The stock is on track to post its third straight session of gains, adding over 10% in value.

Citi Turns Bullish

Citi turned bullish on KFin Tech stock, citing robust mutual fund inflows and improving sentiment. The broker upgraded the stock to ‘Buy’ from ‘Sell’ and raised its price target to ₹1,215 from ₹1,100, implying a potential upside of over 10%.

Citi said KFin is well-positioned to benefit from steady mutual fund inflows, growth in alternate assets, a rising global client base through Ascent’s international reach, and near-term strength in IPO activity.

Earlier, Jefferies also reaffirmed its ‘Buy’ rating with a higher price target of ₹1,460, highlighting Ascent Fund Services as a key catalyst for KFin’s global expansion.

In April, KFin Technologies signed an agreement to acquire a 51% controlling stake in Ascent Fund Services for $34.7 million, with plans to fully own the company within five years. The remaining 49% will be purchased in three equal tranches after FY2028.

Citi further noted that, unlike rival CAMS, KFin faces less pricing pressure since mutual fund AUM-linked revenues form only 45% - 50% of its total, compared to CAMS’ 75%. The company’s diversified client base and ongoing product enhancements are expected to drive stable margins and revenue growth.

However, Citi flagged the promoter stake sale by General Atlantic, which still holds 22.9%, as an overhang.

Retail Sentiment Improves

Citi’s bullish outlook raised market chatter for the stock to ‘extremely high’ on Stocktwits. Importantly, the retail sentiment turned ‘extremely bullish’ from ‘bullish’ a session earlier. It was also a top-three trending stock on the platform.

However, year-to-date, the stock has declined 26.9%.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

Share

·

Add us on