KFin Technologies Limited
KFin Technologies Limited Fundamental Analysis
KFin Technologies Limited (KFINTECH.NS) shows strong financial fundamentals with a PE ratio of 46.59, profit margin of 25.90%, and ROE of 23.10%. The company generates $13.3B in annual revenue with strong year-over-year growth of 31.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 98.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze KFINTECH.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKFINTECH.NS demonstrates superior asset utilization.
Valuation Score
WeakKFINTECH.NS trades at a premium to fair value.
Growth Score
ExcellentKFINTECH.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKFINTECH.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentKFINTECH.NS achieves industry-leading margins.
Key Financial Metrics
Is KFINTECH.NS Expensive or Cheap?
P/E Ratio
KFINTECH.NS trades at 46.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KFINTECH.NS's PEG of 16.43 indicates potential overvaluation.
Price to Book
The market values KFin Technologies Limited at 9.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.05 times EBITDA. This signals the market has high growth expectations.
How Well Does KFINTECH.NS Make Money?
Net Profit Margin
For every $100 in sales, KFin Technologies Limited keeps $25.90 as profit after all expenses.
Operating Margin
Core operations generate 35.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.10 in profit for every $100 of shareholder equity.
ROA
KFin Technologies Limited generates $12.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KFin Technologies Limited produces operating cash flow of $1.81B, showing steady but balanced cash generation.
Free Cash Flow
KFin Technologies Limited generates strong free cash flow of $1.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.18 in free cash annually.
FCF Yield
KFINTECH.NS converts 0.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
16.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
37.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How KFINTECH.NS Stacks Against Its Sector Peers
| Metric | KFINTECH.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.59 | 36.91 | Worse (Expensive) |
| ROE | 23.10% | 1013.00% | Weak |
| Net Margin | 25.90% | 5861152231.00% | Weak |
| Debt/Equity | 0.03 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 37.93 | 5.03 | Strong Liquidity |
| ROA | 12.39% | -294132.00% (disorted) | Strong |
KFINTECH.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KFin Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
139.40%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
6706.36%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
263.97%
Industry Style: Growth, Innovation, High Beta
High Growth