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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 512597 | NSE: KEYFINSERV

Keynote Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:55 pm

Market Cap 174 Cr.
Current Price 245
High / Low403/110
Stock P/E5.68
Book Value 200
Dividend Yield0.41 %
ROCE31.7 %
ROE24.1 %
Face Value 10.0
PEG Ratio0.29

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Keynote Financial Services Ltd

Competitors of Keynote Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICDS Ltd 60.9 Cr. 46.564.8/27.638.3 22.20.00 %9.12 %7.69 % 10.0
SIL Investments Ltd 742 Cr. 705920/37922.5 2,8110.35 %2.07 %1.51 % 10.0
SBI Cards & Payment Services Ltd 64,302 Cr. 675817/64829.1 1380.37 %12.5 %22.0 % 10.0
Nalwa Sons Investments Ltd 4,605 Cr. 8,9299,974/3,00555.4 33,5450.00 %0.73 %0.55 % 10.0
Motilal Oswal Financial Services Ltd 52,729 Cr. 8811,064/27815.6 1850.40 %20.7 %32.6 % 1.00
Industry Average22,544.33 Cr1,457.5829.994,633.690.49%11.50%13.70%7.88

All Competitor Stocks of Keynote Financial Services Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7.549.425.056.74-2.115.235.555.4011.058.5213.9513.5612.22
Expenses2.212.222.504.252.782.432.567.342.832.643.194.153.58
Operating Profit5.337.202.552.49-4.892.802.99-1.948.225.8810.769.418.64
OPM %70.69%76.43%50.50%36.94%53.54%53.87%-35.93%74.39%69.01%77.13%69.40%70.70%
Other Income0.660.540.531.250.550.420.470.430.390.580.610.710.42
Interest0.250.370.230.340.070.010.100.080.040.140.030.080.02
Depreciation0.170.180.180.170.150.220.120.140.160.260.170.190.20
Profit before tax5.577.192.673.23-4.562.993.24-1.738.416.0611.179.858.84
Tax %-0.72%24.90%10.11%17.65%-28.73%26.09%23.77%81.50%23.66%25.58%22.38%16.75%28.73%
Net Profit5.615.402.412.66-3.252.322.81-3.517.175.499.774.357.91
EPS in Rs7.997.693.433.79-4.633.314.00-5.0010.227.8213.926.2011.27

Last Updated: October 22, 2024, 4:43 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 4:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales33201623252013112332164948
Expenses211491310101314811151314
Operating Profit12671014100-3152013635
OPM %37%31%42%42%58%50%2%-23%66%64%5%73%72%
Other Income01000-01000002
Interest5243321111000
Depreciation1111411111111
Profit before tax743677-1-41319-03536
Tax %29%31%33%31%23%21%20%-3%15%14%3,320%22%
Net Profit532466-1-41116-22728
EPS in Rs6.974.302.416.418.228.14-1.51-6.0116.0622.91-2.3238.1739.21
Dividend Payout %17%18%33%12%10%20%-53%-13%5%3%-34%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-40.00%-33.33%100.00%50.00%0.00%-116.67%-300.00%375.00%45.45%-112.50%1450.00%
Change in YoY Net Profit Growth (%)0.00%6.67%133.33%-50.00%-50.00%-116.67%-183.33%675.00%-329.55%-157.95%1562.50%

Keynote Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:30%
3 Years:30%
TTM:67%
Compounded Profit Growth
10 Years:28%
5 Years:94%
3 Years:33%
TTM:157%
Stock Price CAGR
10 Years:21%
5 Years:48%
3 Years:39%
1 Year:104%
Return on Equity
10 Years:8%
5 Years:11%
3 Years:14%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6666666666666
Reserves5456576167727368799593119135
Borrowings34102112131320222628213
Other Liabilities46501523651492491191520
Total Liabilities13912298101150105108119121139110140164
Fixed Assets26242323191818171716171717
CWIP0000000000000
Investments116182435342844626084107
Other Assets1139669601085256746061334040
Total Assets13912298101150105108119121139110140164

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17-10-417-125-416-9-13216
Cash from Investing Activity +108-3-77-151-1622-3-4
Cash from Financing Activity +-2-2-3-1-4-31-04-0-26-3
Net Cash Flow24-4-109-82217-219-8-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-22.00-4.00-14.00-2.001.00-3.00-20.00-25.00-11.00-8.00-1.0035.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1081421169970411410412917286569
Inventory Days
Days Payable
Cash Conversion Cycle1081421169970411410412917286569
Working Capital Days147-058819196221195-478-3810715887
ROCE %14%7%8%11%12%11%0%-3%14%17%0%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters57.88%57.88%56.43%56.42%56.42%56.42%56.42%56.42%56.42%56.42%56.42%57.01%
FIIs7.35%7.35%7.35%7.35%7.35%7.35%7.35%7.35%7.35%7.35%7.35%7.35%
Public34.77%34.77%36.22%36.22%36.22%36.22%36.22%36.23%36.22%36.22%36.22%35.64%
No. of Shareholders3,5953,8753,7873,7393,6533,5803,5723,7603,8814,0603,9414,455

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)49.94-3.0728.8920.25-7.59
Diluted EPS (Rs.)49.94-3.0728.8920.25-7.59
Cash EPS (Rs.)51.34-1.9430.1421.56-6.22
Book Value[Excl.RevalReserv]/Share (Rs.)223.27176.26180.63152.60131.62
Book Value[Incl.RevalReserv]/Share (Rs.)223.27176.26180.63152.60131.62
Revenue From Operations / Share (Rs.)85.0125.3051.6536.1915.57
PBDIT / Share (Rs.)65.671.5036.9127.12-4.28
PBIT / Share (Rs.)64.270.3635.6625.82-5.64
PBT / Share (Rs.)63.75-0.0933.5423.86-7.83
Net Profit / Share (Rs.)49.94-3.0728.8920.25-7.59
NP After MI And SOA / Share (Rs.)48.12-2.9328.8920.25-7.59
PBDIT Margin (%)77.245.9171.4574.94-27.47
PBIT Margin (%)75.601.4469.0471.33-36.25
PBT Margin (%)74.98-0.3664.9265.92-50.31
Net Profit Margin (%)58.74-12.1455.9355.96-48.73
NP After MI And SOA Margin (%)56.60-11.5755.9355.96-48.73
Return on Networth / Equity (%)21.55-1.6615.9913.27-5.76
Return on Capital Employeed (%)26.500.1918.3616.04-4.11
Return On Assets (%)19.14-1.4811.539.34-3.54
Total Debt / Equity (X)0.010.020.260.300.29
Asset Turnover Ratio (%)0.370.050.070.100.05
Current Ratio (X)24.7616.053.901.911.71
Quick Ratio (X)24.7616.023.891.901.71
Dividend Payout Ratio (NP) (%)0.00-34.153.464.93-16.67
Dividend Payout Ratio (CP) (%)0.00-55.683.314.63-20.34
Earning Retention Ratio (%)0.00134.1596.5495.07116.67
Cash Earning Retention Ratio (%)0.00155.6896.6995.37120.34
Interest Coverage Ratio (X)125.493.2717.3613.85-1.95
Interest Coverage Ratio (Post Tax) (X)96.44-5.7114.5911.34-2.46
Enterprise Value (Cr.)68.6536.2166.2121.872.40
EV / Net Operating Revenue (X)1.452.572.301.090.27
EV / EBITDA (X)1.8843.453.221.45-1.01
MarketCap / Net Operating Revenue (X)1.693.332.091.512.76
Retention Ratios (%)0.00134.1596.5395.06116.67
Price / BV (X)0.640.470.590.350.32
Price / Net Operating Revenue (X)1.693.332.091.512.76
EarningsYield0.33-0.030.260.37-0.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Keynote Financial Services Ltd as of November 22, 2024 is: 274.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Keynote Financial Services Ltd is Undervalued by 12.20% compared to the current share price 245.00

Intrinsic Value of Keynote Financial Services Ltd as of November 22, 2024 is: 328.63

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Keynote Financial Services Ltd is Undervalued by 34.13% compared to the current share price 245.00

Last 5 Year EPS CAGR: 19.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (79.15 cr) compared to borrowings (15.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (25.31 cr) and profit (10.15 cr) over the years.
  1. The stock has a low average ROCE of 10.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 100.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 141.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Keynote Financial Services Ltd:
    1. Net Profit Margin: 58.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.5% (Industry Average ROCE: 11.5%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.55% (Industry Average ROE: 13.7%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 96.44
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 24.76
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 5.68 (Industry average Stock P/E: 29.99)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Keynote Financial Services Ltd. is a Public Limited Listed company incorporated on 16/06/1993 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1993PLC072407 and registration number is 072407. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 7.31 Cr. and Equity Capital is Rs. 7.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsThe Ruby, 9th Floor, Mumbai Maharashtra 400028investors@keynoteindia.net
http://www.keynoteindia.net
Management
NamePosition Held
Mr. Vineet SuchantiManaging Director
Mr. Uday S PatilDirector & CFO
Mrs. Rinku SuchantiDirector
Mr. Anish MalhotraIndependent Director
Mr. Manish DesaiIndependent Director
Mr. Shishir DalalIndependent Director

FAQ

What is the latest intrinsic value of Keynote Financial Services Ltd?

The latest intrinsic value of Keynote Financial Services Ltd as on 22 November 2024 is ₹274.90, which is 12.20% higher than the current market price of ₹245.00.

What is the Market Cap of Keynote Financial Services Ltd?

The Market Cap of Keynote Financial Services Ltd is 174 Cr..

What is the current Stock Price of Keynote Financial Services Ltd as on 22 November 2024?

The current stock price of Keynote Financial Services Ltd as on 22 November 2024 is ₹245.

What is the High / Low of Keynote Financial Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Keynote Financial Services Ltd stocks is 403/110.

What is the Stock P/E of Keynote Financial Services Ltd?

The Stock P/E of Keynote Financial Services Ltd is 5.68.

What is the Book Value of Keynote Financial Services Ltd?

The Book Value of Keynote Financial Services Ltd is 200.

What is the Dividend Yield of Keynote Financial Services Ltd?

The Dividend Yield of Keynote Financial Services Ltd is 0.41 %.

What is the ROCE of Keynote Financial Services Ltd?

The ROCE of Keynote Financial Services Ltd is 31.7 %.

What is the ROE of Keynote Financial Services Ltd?

The ROE of Keynote Financial Services Ltd is 24.1 %.

What is the Face Value of Keynote Financial Services Ltd?

The Face Value of Keynote Financial Services Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Keynote Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE