Khandwala Securities Limited (KHANDSE) AI Stock Analysis

• Market Cap: ₹289.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -12.64%
• EPS Growth: -390.34%
• Country: IN
• Employees: 35
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.16
• 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: ₹19.00 ▼(-6.40% Downside)

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

High Gross Margin

A 96.10% gross margin indicates the core brokerage/intermediation business retains most revenue after direct costs. This durable cost structure supports resilience to revenue fluctuations and provides long-term capacity to cover operating expenses, fund strategic initiatives, and sustain competitive pricing.

Low Leverage / Strong Capital Base

Very low debt-to-equity (0.049) and a healthy equity ratio give the firm durable financial flexibility. This conservative capital structure reduces refinancing and solvency risk, supports regulatory capital needs for a securities firm, and enables funding of growth or margin lending without stressing liquidity over months ahead.

Strong Free Cash Flow Generation

A free cash flow to net income ratio of 1.88 and noted FCF growth show the company can generate real cash even when accounting profits are weak. Durable cash generation supports reinvestment, working capital needs, and operational stability, improving resilience through business cycles in the medium term.

Negative Factors

Negative Net Profit Margin

A -5.29% net margin means the company is structurally losing money after operating costs and other items. Over the next several months this undermines retention of earnings and limits capacity to rebuild capital, forcing reliance on cash reserves or external funding unless operating efficiency or revenue mix improves.

Negative Return on Equity

A negative ROE of -2.77% indicates management is not generating returns on shareholder capital. Persistently negative ROE signals poor capital allocation or unprofitable operations, which dampens long-term shareholder value creation and may constrain strategic investment or dividend capacity over months ahead.

Weak Operating Cash Conversion

An operating cash flow to net income ratio of 0.32 shows earnings are not converting into operating cash efficiently, possibly due to working capital swings or non-cash items. This weak conversion raises liquidity risk and casts doubt on the sustainability of reported earnings despite strong FCF metrics.

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 generates revenue primarily through brokerage fees earned from executing trades on behalf of its clients in equities, derivatives, and other financial instruments. Additional revenue streams include advisory fees from investment consultancy services, commissions from the sale of mutual funds, and income from proprietary trading activities. The company may also earn interest income from margin financing provided to clients. Strategic partnerships with financial institutions and technology providers enhance its service offerings and contribute to its revenue generation, allowing Khandwala Securities to capitalize on market demand for comprehensive investment solutions.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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 19.60, below the 50-day MA of 20.82, and below the 200-day MA of 22.90, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 41.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 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	₹1.56B	16.28	―	0.31%	-57.76%	-68.83%
PRIMESECU	74 Outperform	₹9.56B	34.94	―	0.51%	34.10%	-15.20%
STEELCITY	68 Neutral	₹1.29B	9.28	―	4.37%	-8.60%	-9.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KHANDSE	49 Neutral	₹289.82M	-15.60	―	―	-12.64%	-390.34%
INVENTURE	46 Neutral	₹1.22B	31.25	―	―	-53.21%	-78.00%