Keystone Realtors Ltd Falls to 52-Week Low Amid Continued Profit Decline

Stock Price Movement and Market Context

On 16 Feb 2026, Keystone Realtors opened with a gap down of 3.02%, continuing its downward trajectory. The intraday low of Rs.457.6 represents a 6.95% drop from the previous close, and the stock underperformed its sector by 6.2% on the day. This decline places the share price well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.

In contrast, the broader market showed resilience. The Sensex, after an initial negative opening down by 146.36 points, rebounded strongly to close 0.3% higher at 82,878.76. The index remains just 3.96% shy of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights the specific challenges facing Keystone Realtors within the realty sector.

Financial Performance and Profitability Concerns

Keystone Realtors’ recent financial disclosures have been notably weak. The company reported a sharp decline in operating profit by 61.96% in the December 2025 quarter, contributing to a downgrade in its Mojo Grade from Sell to Strong Sell as of 5 Dec 2025. This downgrade reflects deteriorating fundamentals and heightened caution among market analysts.

Profit after tax (PAT) for the quarter stood at Rs.3.38 crores, plunging 86.9% compared to the average of the previous four quarters. Return on Capital Employed (ROCE) for the half-year period is at a low 5.27%, while the operating profit to interest coverage ratio has dropped to 0.49 times, indicating limited buffer to meet interest obligations. These metrics underscore the financial strain the company is currently experiencing.

Valuation and Comparative Performance

Despite the recent price decline, Keystone Realtors’ valuation remains relatively expensive. The stock trades at a Price to Book (P/B) ratio of 2.2, which is high given the company’s subdued return on equity (ROE) of 3.7%. This valuation premium is notable considering the stock’s underperformance relative to its peers and the broader market.

Over the past year, Keystone Realtors has delivered a negative return of 14.16%, in stark contrast to the Sensex’s positive 9.14% gain over the same period. Profitability has also deteriorated, with net profits falling by 33.8% year-on-year. The stock’s performance has been below par not only in the short term but also over longer horizons, underperforming the BSE500 index across one-year, three-year, and three-month timeframes.

Balance Sheet and Shareholding Structure

On a positive note, the company maintains a low average debt-to-equity ratio of 0.04 times, indicating limited leverage and a conservative capital structure. The majority shareholding remains with promoters, which may provide some stability in ownership and strategic direction despite the current financial headwinds.

Summary of Key Metrics

To summarise, Keystone Realtors Ltd’s stock has reached a new 52-week low of Rs.457.6, reflecting a series of quarterly results marked by declining profitability and subdued returns. The company’s Mojo Score stands at 20.0 with a Strong Sell grade, downgraded from Sell in early December 2025. Operating profit has contracted by nearly 62%, while PAT has fallen by almost 87% in the latest quarter. The stock’s valuation remains elevated relative to its earnings and book value, and it continues to trade below all major moving averages.

While the broader market and sector indices have shown resilience, Keystone Realtors’ share price performance and financial indicators highlight ongoing challenges within the company’s business environment and financial health.

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