Khandwala Securities Limited (KHANDSE) AI Stock Analysis

• Market Cap: ₹266.94M
• Dividend Yield: N/A
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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: 49 Neutral
• Price Target: ₹17.50 ▼(-13.79% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Khandwala Securities Limited's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant challenges in profitability and return on equity. Technical analysis suggests bearish momentum, and valuation metrics indicate a lack of profitability with no dividend yield. These factors collectively result in a moderate stock score.

Positive Factors

Gross Margin Strength

A 96.10% gross margin indicates the firm captures nearly all revenue after direct costs, reflecting a high-margin service model in brokerage/intermediation. This structural margin provides durable buffer to absorb operating cost pressures and supports long-term profitability potential if operating expenses are managed.

Conservative Leverage

A debt-to-equity of 0.049 signals minimal financial leverage and low fixed financing obligations, preserving flexibility through economic cycles. This conservative capital structure reduces refinancing risk, supports stable operations during market volatility, and enables strategic investments without heavy interest burden.

Free Cash Flow Generation

FCF to net income of 1.88 and notable free cash flow growth show the company generates cash beyond accounting profits, giving it capacity to fund working capital, invest in technology or client services, and reduce reliance on external funding. This strengthens long-term operational resilience.

Negative Factors

Negative Net Profitability

Persistently negative net margins and weakening operating margins indicate the company struggles to translate high gross margins into bottom-line profits. Structural cost base or revenue mix issues could impair sustainable earnings, limiting reinvestment, dividends, and shareholder returns over the medium term.

Negative Return on Equity

A negative ROE shows the company is not generating acceptable returns on shareholder capital, suggesting inefficiencies or losses that erode equity value. Over months, this undermines shareholder confidence and constrains the company’s ability to attract capital for growth without addressing profitability drivers.

Weak Earnings-to-Cash Conversion

A 0.32 operating cash flow to net income ratio implies earnings are not converting efficiently into operating cash, signaling working capital strains or non-cash accounting items. This weak conversion can limit funding for growth and make earnings less reliable as a predictor of future cash available to operate and invest.

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

Khandwala Securities Limited shows strong revenue growth and a solid gross profit margin, but faces challenges in profitability and return on equity. The balance sheet is stable with low leverage, and cash flow generation is improving, though there are concerns about the conversion of earnings into cash.

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: Negative
• 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 18.15, above the 50-day MA of 19.27, and below the 200-day MA of 22.38, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 68.66 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	₹1.50B	10.11	―	0.31%	-57.76%	-68.83%
PRIMESECU	74 Outperform	₹9.28B	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	49 Neutral	₹266.94M	-16.07	―	―	-12.64%	-390.34%
INVENTURE	46 Neutral	₹1.10B	9.72	―	―	-53.21%	-78.00%