The stock has been in freefall, trading at ₹15.45 as of November 12, 2025, down a staggering 78.98% over the past year and 74.81% year-to-date. With the share price hovering just 13.35% above its 52-week low of ₹13.63 and 80.19% below its 52-week high of ₹77.99, investor confidence has evaporated. The company's proprietary Mojo Score stands at a dismal 17 out of 100, firmly in "STRONG SELL" territory, reflecting the confluence of operational failures, technical weakness, and deteriorating fundamentals.
Financial Performance: A Collapse in Revenue Generation
Krishna Ventures' Q2 FY26 results paint a grim picture of a company struggling to generate meaningful revenue. Net sales of ₹0.04 crores represent an almost complete cessation of business activity, particularly when compared to the already anaemic ₹0.12 crores recorded in Q2 FY25. On a sequential basis, whilst Q1 FY26 recorded zero sales, the marginal revenue in Q2 FY26 offers little comfort given the scale of losses being incurred.
| Quarter | Revenue (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | Operating Margin |
|---|---|---|---|---|
| Sep'25 | 0.04 | N/A | -0.28 | -575.0% |
| Jun'25 | 0.00 | -100.0% | -0.18 | 0.0% |
| Mar'25 | 0.26 | -79.53% | -0.42 | -203.85% |
| Dec'24 | 1.27 | +958.33% | 0.07 | 1.57% |
| Sep'24 | 0.12 | +50.0% | -0.27 | -183.33% |
| Jun'24 | 0.08 | -84.0% | -0.25 | -325.0% |
| Mar'24 | 0.50 | N/A | -0.06 | -12.0% |
The operating margin of -575.0% in Q2 FY26 reveals the extent of the operational distress. With employee costs of ₹0.17 crores far exceeding the minuscule revenue base, the company is burning cash at an alarming rate. Operating profit before depreciation, interest, and tax (PBDIT) stood at -₹0.23 crores, excluding other income. Even after accounting for other income of nil in Q2 FY26, the company recorded a loss before tax of ₹0.27 crores, which translated into a net loss of ₹0.28 crores after a marginal tax credit of ₹0.01 crores.
The profit after tax (PAT) margin of -700.0% underscores the severity of the situation. This represents one of the worst quarterly performances in recent memory, with the company failing to generate sufficient revenue to cover even basic operational expenses. The trajectory over the past several quarters shows extreme volatility, with Q4 FY25 briefly turning profitable at ₹0.07 crores on revenue of ₹1.27 crores, only to collapse back into losses in subsequent quarters.
Operational Challenges: Weak Capital Efficiency and Negative Returns
Krishna Ventures' operational metrics paint a picture of profound inefficiency and value destruction. The company's return on equity (ROE) stands at a deeply negative -7.66%, reflecting the erosion of shareholder value. This is particularly concerning given that the average ROE over recent periods has been a paltry 0.05%, indicating chronic underperformance in generating returns on the capital employed in the business. For context, a negative ROE signals that the company is destroying rather than creating wealth for shareholders—a red flag for any potential investor.
The return on capital employed (ROCE) metric tells a similar story of operational distress, currently at -10.98% with an average of -4.24%. This indicates that the company is failing to generate adequate returns from its capital base, which includes both equity and debt. The negative ROCE suggests that the business model is fundamentally unviable in its current form, with the company unable to deploy capital productively.
⚠️ Critical Operational Red Flags
Negative Returns: ROE of -7.66% and ROCE of -10.98% signal severe value destruction for shareholders.
Revenue Crisis: Sales of just ₹0.04 crores in Q2 FY26 represent near-complete business cessation.
Cash Burn: Operating losses of ₹0.23 crores on minimal revenue indicate unsustainable cash consumption.
Balance Sheet Erosion: Shareholder funds declined to ₹10.59 crores from ₹11.46 crores year-on-year.
The balance sheet reveals further deterioration, with shareholder funds declining to ₹10.59 crores as of March 2025 from ₹11.46 crores a year earlier. This erosion of equity reflects accumulated losses eating into the capital base. The company has taken on long-term debt of ₹3.43 crores as of March 2025, up from zero in the previous year, suggesting an attempt to shore up liquidity in the face of mounting operational losses. However, with negative operating cash flows and minimal revenue generation, the sustainability of this debt burden is highly questionable.
Fixed assets stood at ₹2.81 crores as of March 2025, down from ₹5.97 crores a year earlier, whilst investments increased to ₹5.49 crores from zero. Current assets of ₹10.90 crores provide some liquidity cushion, but with ongoing losses, this buffer is rapidly depleting. The company's sales to capital employed ratio of just 0.19x indicates extremely poor asset utilisation—for every rupee of capital deployed, the company generates just 19 paise in sales, far below industry norms.
Real Estate Sector Context: Navigating a Challenging Environment
The Indian real estate sector has shown signs of recovery in recent years, with residential demand picking up in major metropolitan areas and commercial real estate benefiting from the return-to-office trend. However, Krishna Ventures appears unable to capitalise on these tailwinds, with its performance diverging sharply from broader sector trends. The company's focus on construction and consultancy services in the real estate sector has yielded minimal results, with the business struggling to secure meaningful contracts or revenue streams.
The sector's recovery has been uneven, with well-capitalised developers with strong brand recognition and execution capabilities capturing the lion's share of demand. Smaller players like Krishna Ventures, lacking scale, brand equity, and financial resources, have found themselves increasingly marginalised. The company's inability to generate consistent revenue over multiple quarters suggests deeper structural issues beyond cyclical sector challenges.
Sector Underperformance Analysis
Krishna Ventures has dramatically underperformed the broader Realty sector, with a one-year return of -78.98% compared to the sector's -22.04%—an underperformance of 56.94 percentage points. This massive divergence suggests company-specific issues rather than sector-wide headwinds. Whilst the sector has faced challenges, Krishna Ventures' collapse stands out as exceptional, reflecting operational failures and loss of market confidence.
Peer Comparison: Bottom of the Barrel
When compared against peers in the real estate sector, Krishna Ventures ranks at the bottom across virtually every metric. The company's ROE of 0.05% (average) is far below most peers, whilst its price-to-book value of 1.58x suggests the market is pricing in limited recovery prospects. The absence of institutional holdings—with FII, mutual fund, and insurance company stakes all at 0.00%—speaks volumes about professional investors' assessment of the company's prospects.
| Company | P/E (TTM) | ROE (%) | Debt/Equity | P/BV |
|---|---|---|---|---|
| Krishna Ventures | NA (Loss Making) | 0.05% | 0.00 | 1.58 |
| Laddu Gopal | 20.15 | N/A | N/A | N/A |
| SSPDL Ltd | NA (Loss Making) | 0.0% | 21.20 | 9.41 |
| Jet Solar | 423.08 | 0.0% | -0.60 | 1.00 |
| R J Shah & Co | 2.70 | 5.96% | 0.02 | 0.37 |
The peer comparison reveals that Krishna Ventures is unable to generate positive earnings, hence the "NA (Loss Making)" P/E ratio. Amongst the peer group, only R J Shah & Co demonstrates healthy profitability with an ROE of 5.96% and a conservative debt profile. Krishna Ventures' market capitalisation of ₹17.00 crores ranks it fourth amongst the peer group, reflecting its micro-cap status and limited market presence.
Valuation Analysis: Risk Premium Justified
Krishna Ventures' valuation metrics reflect the market's deep scepticism about the company's prospects. With a "RISKY" valuation grade and a P/E ratio that is not applicable due to losses, traditional valuation frameworks offer little guidance. The price-to-book value of 1.58x might appear modest, but given the negative ROE and deteriorating book value, this represents a premium that is difficult to justify on fundamentals alone.
The stock's dramatic decline from a 52-week high of ₹77.99 to the current price of ₹15.45 represents an 80.19% collapse, erasing significant shareholder wealth. The valuation grade history shows the company has oscillated between "Risky," "Very Expensive," and "Does Not Qualify" over the past two years, reflecting the market's struggle to assign a fair value to a business with such erratic performance and unclear prospects.
The enterprise value to sales ratio of 10.64x appears extremely elevated given the company's inability to convert sales into profits. With negative EBITDA and EBIT, the EV/EBITDA of -16.71x and EV/EBIT of -14.40x are meaningless as valuation tools. The absence of dividends (dividend yield: NA) and the last dividend payment dating back to July 2010 underscore the company's inability to reward shareholders.
Shareholding Pattern: Promoter Dilution Raises Questions
The shareholding pattern reveals concerning trends in promoter behaviour. Promoter holding has declined from 69.24% in September 2024 to 58.15% in September 2025, representing a dilution of 11.09 percentage points over the year. This includes a sharp 9.72 percentage point drop between March 2025 and June 2025, followed by a further 0.07 percentage point decline in the most recent quarter.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Non-Inst % |
|---|---|---|---|---|---|
| Sep'25 | 58.15% | -0.07% | 0.00% | 0.00% | 41.85% |
| Jun'25 | 58.22% | -9.72% | 0.00% | 0.00% | 41.78% |
| Mar'25 | 67.94% | -1.30% | 0.00% | 0.00% | 32.06% |
| Dec'24 | 69.24% | 0.00% | 0.00% | 0.00% | 30.76% |
| Sep'24 | 69.24% | N/A | 0.00% | 0.00% | 30.76% |
The promoter dilution, occurring during a period of mounting losses and stock price collapse, raises questions about promoter confidence in the company's turnaround prospects. Non-institutional holdings have correspondingly increased from 30.76% to 41.85%, suggesting retail investors may be catching the proverbial falling knife. The complete absence of institutional investors—no FIIs, mutual funds, or insurance companies hold stakes—is a glaring red flag, indicating that sophisticated investors see no value proposition in the current business model.
Stock Performance: Catastrophic Wealth Destruction
Krishna Ventures' stock performance has been nothing short of catastrophic across all timeframes. The one-year return of -78.98% vastly underperforms the Sensex's 7.38% gain, resulting in a negative alpha of -86.36 percentage points. Year-to-date, the stock has plummeted 74.81% compared to the Sensex's 8.11% gain, widening the performance gap to -82.92 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +3.90% | +1.22% | +2.68% |
| 1 Month | -9.65% | +2.40% | -12.05% |
| 3 Months | -12.22% | +5.29% | -17.51% |
| 6 Months | -49.13% | +2.49% | -51.62% |
| YTD | -74.81% | +8.11% | -82.92% |
| 1 Year | -78.98% | +7.38% | -86.36% |
| 2 Years | -74.25% | +29.45% | -103.70% |
| 3 Years | -82.98% | +36.71% | -119.69% |
The longer-term picture is equally grim, with three-year returns of -82.98% compared to the Sensex's 36.71% gain, resulting in negative alpha of -119.69 percentage points. Even the five-year return of 40.84%, whilst positive, dramatically lags the Sensex's 94.84% return. The ten-year performance of -97.28% versus the Sensex's 226.59% gain represents a staggering -323.87 percentage points of underperformance, effectively wiping out nearly all shareholder value over the decade.
The stock's volatility of 56.35% over the past year, with a beta of 1.50, indicates extreme price swings and high sensitivity to market movements. The risk-adjusted return of -1.40 with a negative Sharpe ratio places the stock firmly in the "HIGH RISK LOW RETURN" category—the worst possible combination for investors. Trading below all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), the technical picture offers no support for a near-term recovery.
Investment Thesis: A Confluence of Negative Factors
Krishna Ventures' investment thesis is undermined by a perfect storm of negative factors across all four key dimensions assessed by the Mojo Score framework. The company scores just 17 out of 100, firmly in "STRONG SELL" territory, reflecting deep-seated issues that extend beyond cyclical challenges.
The "BELOW AVERAGE" quality grade reflects chronic underperformance in key financial metrics. With a five-year sales growth of 20.49% but EBIT growth of -60.19%, the company has failed to convert top-line expansion into profitability. The average ROCE of -4.24% and ROE of 0.05% underscore the fundamental inability to generate returns on invested capital. The absence of institutional holdings (0.0%) and zero dividend payouts signal that professional investors see no compelling reason to own the stock.
The "FLAT" financial trend designation for Q2 FY26 masks the underlying deterioration, with the company recording its lowest cash and cash equivalents at ₹0.02 crores and weakest debtors turnover ratio at 1.71 times. The "MILDLY BEARISH" technical trend, having changed from "Bearish" on November 3, 2025, offers no solace, with the stock trading below all major moving averages and showing weak momentum indicators across weekly and monthly timeframes.
"With operating losses exceeding revenue, negative returns on capital, and zero institutional interest, Krishna Ventures exemplifies a value trap where the cheap valuation reflects genuine business distress rather than opportunity."
Key Strengths & Risk Factors
✓ Key Strengths
No Promoter Pledging: Promoters have not pledged their shares, indicating no immediate liquidity stress at the promoter level.
Long-Term Growth Track Record: Five-year sales CAGR of 20.49% demonstrates historical ability to grow the top line, albeit from a low base.
Low Debt Burden: Net debt to equity ratio of 0.0 on average suggests the company is not over-leveraged, though recent debt addition bears watching.
Recent Technical Improvement: Stock trend changed from "Bearish" to "Mildly Bearish" on November 3, 2025, suggesting some stabilisation in selling pressure.
Modest Valuation: Price-to-book value of 1.58x is below several peers, though this reflects genuine business challenges rather than opportunity.
⚠️ Key Concerns
Revenue Collapse: Q2 FY26 sales of just ₹0.04 crores represent near-complete cessation of business activity, down 66.67% year-on-year.
Mounting Losses: Net loss of ₹0.28 crores in Q2 FY26 with deeply negative margins (-700% PAT margin) signal unsustainable operations.
Value Destruction: ROE of -7.66% and ROCE of -10.98% demonstrate systematic erosion of shareholder wealth.
Promoter Dilution: Promoter stake declined from 69.24% to 58.15% over the past year, raising questions about confidence in turnaround prospects.
Zero Institutional Interest: Complete absence of FII, mutual fund, and insurance holdings signals professional investors see no value.
Catastrophic Stock Performance: One-year return of -78.98% and three-year return of -82.98% reflect sustained wealth destruction.
Weak Balance Sheet: Shareholder funds eroded to ₹10.59 crores from ₹11.46 crores, with cash position at critically low ₹0.02 crores.
Outlook: What to Watch
Positive Catalysts
Revenue Stabilisation: Consistent quarterly revenue above ₹1 crore for at least two quarters would signal business model viability.
Return to Profitability: Positive operating profit and net profit for consecutive quarters would indicate turnaround traction.
Margin Improvement: Operating margins turning positive and expanding towards 5-10% would demonstrate operational efficiency gains.
Institutional Interest: Entry of mutual funds or FIIs would validate investment case and improve market perception.
Promoter Stake Increase: Promoters increasing stake through open market purchases would signal confidence in recovery.
Red Flags
Further Revenue Decline: Another quarter of sub-₹0.10 crore revenue would confirm business model failure.
Continued Losses: Persistent quarterly losses exceeding ₹0.20 crores would accelerate equity erosion.
Debt Increase: Further borrowing without corresponding revenue growth would raise solvency concerns.
Additional Promoter Dilution: Further reduction in promoter stake below 55% would signal abandonment.
Cash Depletion: Inability to maintain minimum cash balance above ₹0.50 crores would trigger liquidity crisis.
The Verdict: Avoid at All Costs
Score: 17/100
For Fresh Investors: Stay away entirely. Krishna Ventures exhibits all the characteristics of a value trap—a cheap valuation that reflects genuine business distress rather than opportunity. With revenue generation at crisis levels, mounting losses, negative returns on capital, and zero institutional interest, there is no compelling case for investment. The risk of permanent capital loss is extremely high.
For Existing Holders: Exit at the earliest opportunity, even at current depressed levels. The company's inability to generate meaningful revenue over multiple quarters, combined with accelerating losses and promoter dilution, suggests the business model may be fundamentally broken. The absence of any credible turnaround catalyst and the complete lack of institutional validation make continued holding unjustifiable. Cut losses and redeploy capital to higher-quality opportunities.
Fair Value Estimate: Given negative earnings, traditional valuation methods are inapplicable. The current price of ₹15.45 may still overvalue the business given the risk of further equity erosion and potential business failure. A conservative fair value would be below ₹10.00, implying further downside of 35% or more from current levels.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions.
