Kfin technologies, should you hold or sell after IPO listing

 What investors should do in kfin technologies stock after IPO listing?

Kfin Technologies will be listed in the Indian Stock Market as such a company on which the opinion of all the experts is divided. Some stock market experts are saying that money should be invested in Kfin Technologies stock for long term but some stock market experts and media houses are saying that one should not invest in the stock of this company? We will try to guide our website visitors on a right path. We will tell you what you should do in the stock of this company? First of all let us understand the business model of Kfin Technologies Company.

Kfin Technologies Business Model:

If we understand in simple language, then Kfin Technologies is a tech-driven financial services platform provider company, in which the company has a good hold in the applications of Mutual Funds, Pension Funds segment. It would be correct if we call this company as Registrar and Transfer Agent. Kfin Technologies Company is the market leader in its business segment and also holds 40% market share. The company has investor accounts of more than 90 million with more than 1300 issuers including banks & PSU's.

In the Investor solutions segment Company includes Account Setup, Redemption, Transaction Origination, Compliance / Regulatory Reporting Recordkeeping,   Brokerage Calculations etc

On the other hand, If we will talk about  Issuer solutions  segment then company includes  Transaction Processing for IPO, FPO, Folio Creation and Maintenance, etc  & Virtual Voting e-AGM, e-Vault.

Last but not least , company has hold on Global business & Domestic mutual services  like Mortgage Services Legal Services Transfer Agency Finance and Accounting.

Subscription Data:

If we will look on Subscription data of this IPO then it was not good or we can say that it was as per expectations. KFin Technologies IPO was subscribed 2.59 times. If we will check then this public issue was subscribed 1.36 times in the retail category QIB category was subscribed only 4.17 & NII category was subscribed 0.23 times. It was not promising data.

Financial Performance of Kfin technologies:

On a Operational front, company had generated  revenue was Rs 6,395.07 million and Rs 3,487.68 million for Fiscal 2022 & 6 months ended Sept 30, 2022.

 

 Total Borrowing:

 From March 2020 to March 2022 total borrowing had decreased from 375.44 crore to 122.5 crore.

Profit after tax:

Company had showed very good profit growth in the last few years and Profit had increased March 2019 to March 2022 i.e 8.9  crore to 148.5 crore

 

Valuations:

Kfin technologies IPO had come up with P/E  (X) 39.37 with market cap of  6133.02 cr with the IPO price range of 347rs to 366rs per share with the lot of 40 shares. If we will check the valuation of the company then we can say that as per current market situation, Kfin technologies is coming up with moderate valuations

Kfin technologies Stock buy, sell or hold ?

If we understand the points of discussion discussed above carefully, then the IPO of Shroud Technologies has been brought to the stock market at a price higher than its valuations. There is no doubt that the financials of the company are good but we should not forget that the IPO of Kfin Technologies was OFS (Offer for Sale) based. That's why the investors did not give such a good response. If so spoken, the company's management did not leave any chance for the investors to make profits after the listing. The demand of the company is also good but some negative points are also associated with this company. As the old promoters of Kfin Technologies Company are Karvy who are the promoters of Karvy Group and the fraud of Karvy Broking Company is not hidden from anyone in the stock market. If we listen to the media houses, the management says that now kfin technologies have nothing to do with Karvy Group, but still around 14% holding of the promoters of Karvy Group is in Kfin company, which is blocked by the investigation agencies. has been done. But this may also be a big risk in the future.

On the other hand, CAMS Company’s valuation looks good. CAMS stock is also trading at P/E of 40 in Indian stock market. CAMS company is much bigger company than Kfin Technologies but in terms of valuations and compared to management, CAMS company stock gives more comfort level for long term.

We are not advising our website viewers to invest in Kfin Technology stock. IPO's of many other such companies have come in the Indian stock market, whose valuations are good.

If any investor has got Kfin Technologies stock allotted in IPO then he can keep it in his portfolio from long term point of view but new investors should not rush to invest in this stock after IPO listing of Kfin Technologies. After IPO listing let the stock settle at lower levels, after that understand the volition gap then make up your mind to make new investment in this stock.

 

Final recommendation on Kfin Technologies stock:

Try to exit on higher price levels and wait for lower price levels to come in this stock otherwise avoid investment in Kfin technologies stock.

Disclaimer:

We have no holding in this stock. Buying/selling in any stock is depend on website viewers own choice.