Keynote Finan. (KEYFINSERV)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Near-zero leverage with D/E of 0.01 provides strong financial stability.
• Promoter holding at 71.88% aligns management with minority shareholders.
• ROE of 16.37% shows reasonable return on equity.
• Sales growth of 87.37% demonstrates strong business momentum in the current market.
• Latest quarter net margin of approximately 33% indicates some operating efficiency.

Concerns

• Profit growth of -9.77% despite 87.37% sales growth suggests weak conversion to the bottom line.
• Piotroski F-Score of 4/9 reflects deteriorating fundamental health.
• P/E of 17.33 with falling earnings offers no clear margin of safety.
• ROCE of 9.27% is modest and dividend yield of 0.36% provides little income support.

AI Analysis

Let me examine Keynote Finan. as a business, not as a ticker. It is in stockbroking and allied services, an industry I instinctively distrust. Broking is competitive, commoditised, and dependent on market mood. Customers leave for a lower brokerage, so a durable moat is hard to build. The numbers reinforce that caution. At ₹309.57, the market cap is ₹157 Cr, while book value is ₹132.51. That means I pay 2.34 times book — not a Graham-style margin of safety. The P/E is 17.33 on earnings that have fallen 9.77%. Sales grew 87.37%, yet profit went the other way. That divergence is a red flag: the top line is expanding, but it is not converting into owner earnings. The latest quarter shows ₹12 Cr sales and ₹4 Cr net profit, a strong 33% margin, but one quarter cannot override a deteriorating annual trend. Financially, the company is sound: debt-to-equity is 0.01, near zero debt, and promoter holding is 71.88%, so owners have skin in the game. ROE of 16.37% is respectable, but ROCE is only 9.27%, which makes me question the quality of capital allocation. The Piotroski F-Score of 4/9 is weak, and dividend yield of 0.36% means I am not being paid to wait. A PEG of 0.20 looks attractive only if you ignore the negative profit growth; with falling earnings, I do not trust it. With a 52-week range of ₹220 to ₹382, this is a volatile, cyclical stock. In a bull market, broking profits can look great; in a downturn, they vanish quickly. Ben Graham would want a margin of safety. At current price, I do not see it. I will pass for now and wait for either a cheaper price or proof that sales growth can translate into sustained profit.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer