Stock Price Movement and Market Context
The stock of Khandwala Securities Ltd has declined to Rs.18, its lowest level in the past year, down from a 52-week high of Rs.31.79. This represents a substantial drop of approximately 43.4% from its peak price. Despite this, the stock outperformed its sector by 5.14% on the day of the new low, indicating some relative resilience within its segment.
Trading activity has been somewhat erratic, with the stock not trading on one day out of the last 20 sessions. Additionally, Khandwala Securities is currently trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling a sustained downward trend in price momentum.
The broader market backdrop has also been unfavourable. The Sensex opened 385.82 points lower and is trading at 81,605.33, down 0.7%. The index has experienced a three-week consecutive decline, losing 4.85% over this period. While the Sensex remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, suggesting some underlying longer-term support for the benchmark.
Financial Performance and Fundamental Metrics
Khandwala Securities Ltd’s financial results have reflected the pressures on its stock price. The company reported flat results for the nine months ended September 2025, with net sales declining by 32.63% to Rs.5.72 crores. Correspondingly, the profit after tax (PAT) also fell by 32.63%, registering a loss of Rs.2.40 crores over the same period.
Cash and cash equivalents stood at a low Rs.0.47 crores as of the half-year mark, highlighting limited liquidity buffers. The company’s operating profit has grown at a modest annual rate of 8.61%, which is insufficient to offset other financial pressures.
Return on Equity (ROE) remains weak at an average of 0.83%, underscoring limited profitability relative to shareholder equity. Over the past year, profits have deteriorated sharply, with a decline of 251%, contributing to the stock’s risky valuation profile compared to its historical averages.
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Comparative Performance and Market Position
Over the last year, Khandwala Securities Ltd has underperformed significantly relative to the benchmark indices. The stock has delivered a negative return of 31.12%, while the Sensex has gained 7.56% over the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index in each of the previous three annual periods.
The company’s market capitalisation grade is rated 4, reflecting its micro-cap status and associated risks. The Mojo Score assigned to Khandwala Securities is 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 6 February 2025. This rating reflects concerns over the company’s weak long-term fundamentals and deteriorating profitability.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics.
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Valuation and Risk Considerations
The stock’s current valuation is considered risky when compared to its historical averages. The negative EBITDA and declining profit margins have contributed to a cautious outlook. The consistent underperformance against benchmarks over multiple years highlights structural challenges in the company’s financial trajectory.
Despite the recent price decline, the stock’s trading below all major moving averages indicates continued downward pressure. The limited cash reserves further constrain the company’s ability to navigate near-term financial demands.
Summary of Key Metrics
To summarise, Khandwala Securities Ltd’s stock has reached a 52-week low of Rs.18, reflecting a 31.12% loss over the past year. The company’s financials show a 32.63% decline in net sales and PAT for the nine months ended September 2025, with cash and cash equivalents at a low Rs.0.47 crores. The Mojo Grade of Strong Sell and a Mojo Score of 12.0 underline the concerns regarding its fundamental strength and valuation risks.
The broader market environment, with the Sensex down 0.7% and on a three-week losing streak, adds to the challenging context for the stock. Khandwala Securities’ underperformance relative to the Sensex and BSE500 indices over multiple years further emphasises the difficulties faced by the company in regaining investor confidence.
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