Khandwala Securities Limited (KHANDSE) AI Stock Analysis

• Market Cap: ₹249.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -12.64%
• EPS Growth: -390.34%
• Country: IN
• Employees: 35
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.32
• Shares Outstanding: 15,253,805
• 10 Day Avg. Volume: 191
• 30 Day Avg. Volume: 1,782
• PEG Ratio: 0.07
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 4.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹16.00 ▼(-21.18% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by weak profitability (negative net margin and ROE) and bearish technical positioning (below major moving averages with negative MACD). Offsetting factors include strong revenue growth, very high gross margin, and conservative leverage, but valuation signals elevated risk due to losses (negative P/E) and no provided dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth of +34% indicates expanding client activity or market share in capital markets services. Over a multi-month horizon this supports scale economies, higher fee base and gives management room to invest in distribution and technology to entrench the business model.

Very High Gross Margin

A 96% gross margin reflects a capital-light, fee-driven business with low direct costs. This structural margin advantage provides resilience versus revenue swings and the scope to absorb SG&A increases while preserving core profitability if top-line growth persists.

Strong Free Cash Flow

Free cash flow generation materially above reported earnings shows the company converts economic profit into cash. Durable cash generation supports reinvestment, debt service and optional shareholder returns, improving long-term financial flexibility despite earnings volatility.

Negative Factors

Negative Net Margin

A negative net margin demonstrates the company is not currently translating revenue into bottom-line profits. Persisting losses constrain retained earnings, limit reinvestment capacity, and mean reliance on cash reserves or financing to sustain growth absent margin recovery.

Negative Return on Equity

Negative ROE indicates the business is destroying shareholder value on current capital. Over several months this reduces the attractiveness to equity providers and limits ability to raise capital on favorable terms, complicating long-term expansion or acquisitions.

Weak Operating Cash Conversion

Low operating cash conversion (0.32) means reported earnings are not reliably converting to operating cash. This weak conversion creates risk for working capital stress and reduces usable cash for sustainable growth investments, despite strong free cash flow metrics elsewhere.

Khandwala Securities Limited Business Overview & Revenue Model

Company Description

Khandwala Securities Limited provides stock broking, investment banking, investment advisory, portfolio management, and depository participant services in India. It offers investment banking services, including capital raising, mergers and acquisitions advisory, domestic IPOs, FCCBs, private equity placements, corporate finance advisory, follow-on offerings, rights offerings, ADR and GDR offerings, QIP transactions and convertible offerings, and restructuring services. The company also provides institutional equities services, such as institutional equity sales, execution, research; and broking and distribution services comprising non-institutional equity sales, trading, research, and broking and distribution. In addition, it offers investment advisory services, including private and corporate wealth management, planning and asset deployment advice, and asset allocation and distribution of various products; and equity and debt issue management services. The company serves public and private sector corporations, multinational corporations, financial institutions, institutional investors, high net worth individuals, and retail investors, as well as market intermediaries. Khandwala Securities Limited was founded in 1934 and is headquartered in Mumbai, India.

How the Company Makes Money

Khandwala Securities Limited primarily makes money through fees, commissions, and other income earned from facilitating transactions and providing services in capital markets. Key revenue streams typically include (1) brokerage/transaction income from executing trades in securities for clients, (2) fees from distribution and placement of financial products/services (where applicable), and (3) interest and other income associated with financing, margin funding, or treasury/investment activities, subject to the company’s actual operations and regulatory permissions. Specific details on the exact revenue mix, major client segments, and significant partnerships are null.

Khandwala Securities Limited Financial Statement Overview

Summary

Strong revenue growth (+34.02%) and a very high gross margin (96.10%) are positives, supported by low leverage (debt-to-equity 0.049). However, profitability is weak (net margin -5.29%), ROE is negative (-2.77%), and operating cash conversion is a concern (operating cash flow to net income 0.32), keeping the score moderate.

Income Statement

Khandwala Securities Limited has shown significant revenue growth of 34.02% in the latest year, indicating a positive trajectory. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -5.29% and declining EBIT and EBITDA margins. The gross profit margin remains strong at 96.10%, suggesting efficient cost management at the gross level, but the company needs to address its operating and net profit challenges to improve overall financial health.

Balance Sheet

The balance sheet of Khandwala Securities Limited is relatively stable, with a low debt-to-equity ratio of 0.049, indicating conservative leverage. However, the return on equity is negative at -2.77%, reflecting the company's challenges in generating returns for shareholders. The equity ratio stands at a healthy level, suggesting a strong capital base.

Cash Flow

The cash flow statement reveals a strong free cash flow to net income ratio of 1.88, indicating good cash generation relative to net income. The company has also shown significant free cash flow growth, but the operating cash flow to net income ratio is relatively low at 0.32, suggesting potential issues in converting earnings into cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	81.78M	95.57M	85.27M	62.77M	61.11M	36.14M
Gross Profit	44.97M	60.15M	53.30M	38.10M	27.22M	9.13M
EBITDA	-4.40M	6.50M	6.91M	10.77M	10.21M	-7.33M
Net Income	-18.65M	-8.00M	1.74M	4.43M	1.19M	-16.51M
Balance Sheet
Total Assets	0.00	433.08M	476.06M	435.74M	472.68M	413.62M
Cash, Cash Equivalents and Short-Term Investments	0.00	116.68M	35.48M	65.20M	90.43M	64.33M
Total Debt	0.00	15.03M	15.48M	26.42M	64.63M	69.40M
Total Liabilities	-288.89M	144.18M	179.24M	140.82M	271.66M	214.11M
Stockholders Equity	288.89M	288.89M	296.81M	294.92M	201.02M	199.51M
Cash Flow
Free Cash Flow	0.00	75.67M	-21.01M	-78.61M	32.73M	-3.36M
Operating Cash Flow	0.00	40.24M	-17.42M	-72.69M	33.03M	-2.06M
Investing Cash Flow	0.00	-39.36M	-11.72M	-5.61M	5.04M	1.76M
Financing Cash Flow	0.00	2.85M	-914.08K	84.05M	-11.88M	-15.39M

Khandwala Securities Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KHANDSE, the sentiment is Negative. The current price of 20.3 is above the 20-day moving average (MA) of 17.74, above the 50-day MA of 19.05, and below the 200-day MA of 22.29, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KHANDSE.

Khandwala Securities Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYFINSERV	75 Outperform	₹1.45B	10.11	―	0.31%	-57.76%	-68.83%
PRIMESECU	74 Outperform	₹9.25B	111.43	―	0.51%	34.10%	-15.20%
STEELCITY	68 Neutral	₹1.24B	9.34	―	4.37%	-8.60%	-9.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KHANDSE	48 Neutral	₹249.86M	-16.07	―	―	-12.64%	-390.34%
INVENTURE	46 Neutral	₹1.08B	9.72	―	―	-53.21%	-78.00%