Stock Price Movement and Market Context
On 27 Nov 2025, Karnavati Finance’s stock price settled at Rs.1.23, representing its lowest level in the past year and also an all-time low. This performance contrasts sharply with the broader market, where the Sensex opened 135.54 points higher and traded at 85,825.43, marking a new 52-week high. The Sensex has been on a three-week consecutive rise, gaining 3.14% over this period, supported by strong performances from mega-cap stocks. Meanwhile, Karnavati Finance underperformed its sector by 4.56% on the same day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward momentum relative to its recent trading history.
Financial Performance and Profitability Metrics
Over the last year, Karnavati Finance’s stock has recorded a return of -35.65%, significantly underperforming the Sensex, which showed a positive return of 7.01% during the same period. The company’s 52-week high was Rs.2.44, highlighting the extent of the decline.
Profitability indicators reveal ongoing challenges. The company reported a net loss (PAT) of Rs.-4.29 crores in the quarter ending September 2025, reflecting a fall of 398.8% compared to previous periods. Earnings per share (EPS) for the quarter stood at Rs.-0.43, marking the lowest level recorded. Additionally, profit before tax excluding other income (PBT less OI) was also at Rs.-4.29 crores, underscoring the negative earnings trend.
Balance Sheet and Debt Position
Karnavati Finance’s financial structure shows a high leverage profile, with a debt-to-equity ratio of 6.31 times. This elevated level of debt relative to equity indicates a substantial reliance on borrowed funds. The company’s ability to service this debt is constrained, as reflected by a debt-to-EBITDA ratio of 5.59 times. Such figures suggest that earnings before interest, taxes, depreciation, and amortisation are insufficient to comfortably cover debt obligations.
The return on equity (ROE) averaged 1.49%, signalling limited profitability generated from shareholders’ funds. Similarly, the return on capital employed (ROCE) was recorded at 1.5%, which is modest given the capital invested in the business.
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Valuation and Comparative Analysis
Despite the subdued financial performance, Karnavati Finance’s valuation metrics present an interesting picture. The enterprise value to capital employed ratio stands at 1.1, which is comparatively attractive. This suggests that the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation is accompanied by a significant decline in profits, which have fallen by 112.1% over the past year.
Long-Term Performance and Shareholding
The stock has consistently underperformed the BSE500 index over the last three annual periods, indicating a persistent trend of relative weakness. The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company.
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Sector and Market Environment
Karnavati Finance operates within the Non Banking Financial Company (NBFC) sector, which has experienced varied performance across different players. While the broader market, as represented by the Sensex, has shown resilience and growth, Karnavati Finance’s stock has not mirrored this trend. The Sensex’s current position above its 50-day and 200-day moving averages reflects a bullish market environment, contrasting with the stock’s downward trajectory.
Summary of Key Metrics
To summarise, Karnavati Finance’s key financial and market metrics as of 27 Nov 2025 include:
- Share price at Rs.1.23, marking a 52-week and all-time low
- One-year stock return of -35.65% versus Sensex’s 7.01%
- Debt-to-equity ratio at 6.31 times, indicating high leverage
- Debt-to-EBITDA ratio of 5.59 times, reflecting limited debt servicing capacity
- Quarterly net loss of Rs.-4.29 crores and EPS of Rs.-0.43
- Return on equity averaging 1.49% and ROCE at 1.5%
- Enterprise value to capital employed ratio of 1.1, suggesting valuation discount
These figures collectively illustrate the challenges faced by Karnavati Finance in maintaining profitability and market valuation amidst a broader market rally.
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