Karnavati Financ

Why is Karnavati Finance Ltd falling/rising?

As of 01-Sep, Karnavati Finance Ltd's stock price is declining, currently at 1.36, reflecting a significant underperformance against benchmarks and a lack of investor interest. The company faces financial challenges, including a high debt-to-equity ratio and low returns, contributing to its downward trend.

As of 01-Sep, Karnavati Finance Ltd's stock price is falling, currently at 1.36, which reflects a change of -0.03 or -2.16%. The stock has underperformed against the benchmark, with a performance today that is lower than the sector by -1.19%. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a downward trend.<BR><BR>Investor participation has also decreased, as evidenced by a delivery volume of 3.73k on 31 August, which is down by -21.45% compared to the 5-day average. This decline in trading activity suggests a lack of interest from investors.<BR><BR>Financially, the company is facing significant challenges, including a high debt-to-equity ratio of 13.81 times, which indicates weak long-term fundamental strength and a low ability to service its debt, as reflected in a debt-to-EBITDA ratio of -32.20 times. Although the company reported a higher profit after tax (PAT) of Rs 1.16 Cr and the highest earnings per share (EPS) of Rs 0.62 for the quarter, these positive factors are overshadowed by the overall financial instability and consistent underperformance against benchmarks over the last three years. The stock has generated a return of -0.73% over the past year, while its profits have risen significantly, leading to a low return on equity (ROE) of 1.49% and a return on capital employed (ROCE) of -2.9.<BR><BR>In summary, the combination of declining investor participation, poor financial metrics, and consistent underperformance against benchmarks are contributing to the falling stock price of Karnavati Finance Ltd.

Who are in the management team of Karnavati Financ?

The management team of Karnavati Financ includes Jay R Morzaria (Managing Director), Raman P Morzaria (Whole-time Director), and several independent and non-executive directors, with varying remuneration; key members include Akansha Rai (Company Secretary) and Ashish Nandkishor Batavia (Chairman).

The management team of Karnavati Financ includes the following individuals:<BR><BR>1. **Jay R Morzaria** - Managing Director, with a remuneration of 12.0 lacs INR.<BR>2. **Raman P Morzaria** - Whole-time Director, earning 9.0 lacs INR.<BR>3. **Brimda Bilimoria** - Independent Director, with no remuneration.<BR>4. **Parth Maniar** - Independent Director, also with no remuneration.<BR>5. **Akansha Rai** - Company Secretary & Compliance Officer, with no remuneration.<BR>6. **Vinesh Kumar** - Non-Executive Director, earning no remuneration.<BR>7. **Ashish Nandkishor Batavia** - Chairman & Non-Executive Director, with no remuneration.<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

What does Karnavati Financ do?

Karnavati Finance Ltd is a Non-Banking Financial Company (NBFC) focused on the micro-cap segment, reporting net sales of 2 Cr and net profit of 6 Cr for June 2026, with a market cap of INR 14 Cr. Key metrics include a P/E ratio of 19.00 and a debt-equity ratio of 13.81.

Overview: <BR>Karnavati Finance Ltd is a Non-Banking Financial Company (NBFC) operating in the micro-cap segment.<BR><BR>History: <BR>Karnavati Finance Ltd was originally incorporated as 'Karnavati Finance And Leasing Limited' in 1984 and changed its name to "Karnavati Finance Limited" in 1989. The most recent quarterly results reported net sales and net profit for June 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 2 Cr (Quarterly Results - Jun 2026) <BR>Most recent Net Profit: 6 Cr (Quarterly Results - Jun 2026) <BR>Market-cap value: INR 14 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 19.00 <BR>Industry P/E: 31 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 13.81 <BR>Return on Equity: 16.86% <BR>Price to Book: 3.11 <BR><BR>Contact Details: <BR>Address: 705 Palm Spring Centre, Link Road Malad (West) Mumbai Maharashtra : 400064 <BR>Email: karnavatifinance@gmail.com <BR>Website: http://www.karnavatifinancelimited.in

Who are the peers of the Karnavati Financ?

Karnavati Financ's peers include Stellar Capital, GSL Securities, Comfort Comtrade, Decillion Financ, Daulat Securitie, Mehta Integrat., KBS India, Franklin Leasing, and Shrydus Indust. Among these, Shrydus Indust has the highest 1-year return at 8.52%, while Karnavati Financ's return is -0.71%.

Peers: The peers of Karnavati Financ are Stellar Capital, GSL Securities, Comfort Comtrade, Decillion Financ, Daulat Securitie, Mehta Integrat., KBS India, Franklin Leasing, and Shrydus Indust.<BR><BR>Quality Snapshot: Excellent management risk is observed at Stellar Capital, Comfort Comtrade, Decillion Financ, Daulat Securitie, KBS India, Franklin Leasing, and Shrydus Indust, while Average management risk is found at Daulat Securitie and Comfort Comtrade, and the rest have Below Average management risk. Growth is Excellent at Daulat Securitie, Average at Comfort Comtrade, and the rest have Below Average growth. Capital Structure is Excellent at Stellar Capital, Comfort Comtrade, Decillion Financ, KBS India, Franklin Leasing, and Shrydus Indust, while Karnavati Financ has Below Average capital structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Shrydus Indust at 8.52%, while Comfort Comtrade has the lowest at -54.78%. Karnavati Financ's 1-year return is -0.71%, which is better than Comfort Comtrade but worse than Shrydus Indust. Additionally, GSL Securities, KBS India, and Comfort Comtrade have negative six-month returns.

How big is Karnavati Financ?

As of 31st August, Karnavati Finance Ltd has a market capitalization of 14.00 Cr, with recent net sales of 7.33 Cr and a net profit of 0.73 Cr. The balance sheet for March 2025 shows shareholder's funds of 10.23 Cr and total assets of 21.60 Cr.

As of 31st August, Karnavati Finance Ltd has a market capitalization of 14.00 Cr, categorized as a Micro Cap company.<BR><BR>In the latest four quarters, Karnavati Finance reported Net Sales of 7.33 Cr and a Net Profit of 0.73 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, showing Shareholder's Funds of 10.23 Cr and Total Assets of 21.60 Cr.

Which are the latest news on Karnavati Financ?

Should I buy, sell or hold Karnavati Finance Ltd?

Are Karnavati Finance Ltd latest results good or bad?

Karnavati Finance Ltd's latest results are concerning, showing a net loss of ₹5.79 crores for March 2026, a significant decline from a profit in the previous quarter. Despite a 900% year-on-year sales growth, operational inefficiencies and negative margins indicate substantial challenges, making the results bad and suggesting investors should avoid the company.

Karnavati Finance Ltd's latest results are quite concerning. For the quarter ending March 2026, the company reported a net loss of ₹5.79 crores, which is a drastic decline from a profit of ₹0.70 crores in the previous quarter. This represents a staggering 927.14% decrease in net profit quarter-over-quarter. <BR><BR>While the company did achieve a significant year-on-year growth in net sales of 900%, reaching ₹2.60 crores, this growth is overshadowed by severe operational inefficiencies. The operating profit margin fell to -158.85%, indicating that the costs of generating revenue far exceed the revenue itself. Furthermore, the company's return on equity stands at a deeply negative -10.39%, highlighting the destruction of shareholder value.<BR><BR>Overall, the financial performance suggests that Karnavati Finance is facing substantial challenges, and the results can be classified as bad, with a strong recommendation to avoid investment in the company at this time.

Is Karnavati Financ overvalued or undervalued?

As of November 18, 2025, Karnavati Financ's valuation has improved to attractive, yet it remains undervalued with a PE ratio of -2.69 and an EV to EBITDA ratio of 72.39, significantly lagging behind peers and the Sensex, indicating potential for growth despite current challenges.

As of 18 November 2025, the valuation grade for Karnavati Financ has moved from risky to attractive, indicating a significant improvement in its perceived value. Despite this positive change, the company appears to be undervalued based on its current financial ratios. The PE ratio stands at -2.69, while the EV to EBITDA ratio is notably high at 72.39, suggesting that the market may not be fully recognizing the company's potential. Additionally, the ROE is concerningly low at -59.38%, which reflects challenges in generating profit from equity.<BR><BR>In comparison to its peers, Karnavati Financ's valuation metrics are strikingly different. For instance, Altius Telecom, classified as very attractive, has a PE ratio of 51.84, while other peers like Embassy Office REIT and Mindspace Business have significantly higher EV to EBITDA ratios of 133.34 and 54.59, respectively. This stark contrast highlights that Karnavati Financ is trading at a discount relative to its industry peers. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 30.23% compared to the Sensex's gain of 8.36%, reinforcing the notion that the stock may be undervalued in the current market environment.

How has been the historical performance of Karnavati Financ?

Karnavati Financ showed significant improvement in fiscal year ending March 2016, with total operating income rising to 0.62 Cr and a turnaround to a profit after tax of 0.37 Cr from a loss the previous year. Key metrics included a dramatic increase in operating profit margin to 70.99% and positive cash flow from operating activities of 5.00 Cr.

Answer:<BR>The historical performance of Karnavati Financ shows a significant improvement in its financial metrics from March 2015 to March 2016.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2016, Karnavati Financ reported net sales of 0.44 Cr, a slight decrease from 0.48 Cr in March 2015. However, other operating income increased to 0.18 Cr from none the previous year, resulting in total operating income rising to 0.62 Cr compared to 0.48 Cr in the prior year. Total expenditure, excluding depreciation, decreased significantly from 0.81 Cr to 0.18 Cr, contributing to an operating profit (PBDIT) of 0.45 Cr, a turnaround from a loss of 0.33 Cr in March 2015. Profit before tax also improved to 0.44 Cr from a loss of 0.35 Cr, leading to a profit after tax of 0.37 Cr, compared to a loss of 0.38 Cr the previous year. The earnings per share (EPS) rose to 0.44 from a loss of 0.45, and the operating profit margin improved dramatically to 70.99% from -69.75%. On the balance sheet, total liabilities decreased from 28.72 Cr in March 2024 to 21.60 Cr in March 2025, while total assets also fell from 28.72 Cr to 21.60 Cr. The book value per share adjusted decreased to 10.18 from 11.85. Cash flow from operating activities showed a positive trend with 5.00 Cr in March 2025, compared to -2.00 Cr in March 2024. Overall, Karnavati Financ demonstrated a recovery in profitability and operational efficiency in the fiscal year ending March 2016.

When is the next results date for Karnavati Financ?

Karnavati Financ will announce its results on 13 August 2025.

Karnavati Financ will declare its results on 13 August 2025.

Who are the top shareholders of the Karnavati Financ?

The top shareholders of Karnavati Financ include promoter Raman P Morzaria with 29.24%, Beeline Consultancy Services Private Limited at 6.73%, and individual investors holding 27.13%. There are no pledged promoter holdings, and the company has no mutual funds or foreign institutional investors.

The top shareholders of Karnavati Financ include the promoters, with Raman P Morzaria holding the largest share at 29.24%. Additionally, Beeline Consultancy Services Private Limited is the highest public shareholder, owning 6.73%. Individual investors collectively hold 27.13% of the company's shares. Notably, there are no pledged promoter holdings, and the company does not have any mutual funds or foreign institutional investors (FIIs) holding shares.

What is the technical trend for Karnavati Financ?

As of May 3, 2025, Karnavati Financ shows a mildly bearish trend due to daily moving averages, despite some bullish signals from weekly and monthly indicators, indicating caution and weak performance relative to the Sensex.

As of 3 May 2025, the technical trend for Karnavati Financ has changed from sideways to mildly bearish. The current stance is mildly bearish, driven primarily by the daily moving averages indicating a bearish trend. The weekly and monthly MACD and KST are mildly bullish, but the overall bearish signals from the Bollinger Bands and Dow Theory on a weekly basis suggest caution. The RSI shows no signal in both weekly and monthly time frames, indicating a lack of momentum. Despite a recent price increase to 2.00 from a previous close of 1.97, the stock's performance relative to the Sensex over various periods remains weak, particularly in the longer term.

Has Karnavati Financ declared dividend?

No Dividend History Available