Company Overview

Khandwala Securities Ltd. is a Mumbai-based diversified financial services company with a rich heritage spanning over 90 years. The group's expertise in financial services dates back to 1934, and Khandwala Securities Limited (KSL) officially commenced its journey on February 9, 1993. The company operates as a specialized Institutional Dealing and Investment Banking firm, distinguished by its exemplary track record in cutting-edge research, service innovation, transaction execution, and solution structuring.

The company was principally promoted by Mr. Paresh J Khandwala, a second-generation financial market specialist entrepreneur. KSL offers a comprehensive range of financial services tailored for both institutional and retail clients. While KSL was established in 1993, its deep-rooted experience in market intermediation and transaction execution allows it to serve clients with innovative techniques aligned with market best practices.

Business Model and Segments

Khandwala Securities Ltd. provides a wide array of broking and investment advisory services, structured across two primary segments:

- Fee-based Operations: This segment encompasses financial advisory services for mergers and acquisitions, equity and debt issue management, portfolio management, and general broking.

- Investment & Stock Operations: This segment involves proprietary trading, investing, and speculation activities within the capital markets.

The company was accredited by SEBI as a Category I Merchant Banker in 1993, enabling it to expand its financial services portfolio to achieve a balanced mix of fund-based and non-fund-based activities. Today, KSL maintains a focused approach on investment banking and investment advisory services.

Business Segments and Services Offered:

- Investment Banking: Capital Raising, M&A Advisory, Domestic IPOs, Private Equity Placements, Corporate Finance Advisory, Restructuring, FCCBs, and GDRs.

- Institutional Equities: Institutional equity sales, execution, and research.

- Broking and Distribution: Non-institutional equity sales, trading, research, broking, distribution, and depository services.

- Investment Advisory: Private and corporate wealth management, and portfolio management.

The company's products and services include equities, derivatives, portfolio management services, mutual funds, initial public offering (IPO) advisory and distribution, insurance, structured products, depository services, and third-party product distribution, among others.

Market Position and Stock Performance

Khandwala Securities Ltd. trades on both NSE and BSE under the ticker symbol KHANDSE (BSE Code: 531892).

- Market Capitalization: ₹35.02 Cr (as of May 26, 2025).

- Recent Performance:

- The stock has shown some volatility, increasing by 2.72% over the last week and 12.91% over the last month.

- However, over the last year, KHANDWALA SECURITIES LTD has seen a decline of -23.21%.

- 1-Year Range: The KHANDSE stock has traded between a 1-year low of ₹19.23 and a 1-year high of ₹36.78.

- All-Time Performance:

- All-Time High: ₹159.00 (February 12, 2001)

- All-Time Low: ₹5.00 (March 19, 2003)

Financial Performance and Key Metrics

Latest Financial Results

Quarter Ended March 2025 (Q4FY25):

- Consolidated Revenues: Reported a 5.6% quarter-on-quarter (QoQ) decrease. However, on a year-on-year (YoY) basis, it witnessed a significant growth of 1271.4%.

- Net Loss: ₹2.05 crore, compared to a net loss of ₹0.34 crore in the previous quarter (Q4FY24).

- Sales: Declined by 58.30% to ₹1.18 crore from ₹2.83 crore in the same quarter the previous year.

Full Year FY25:

- Net Loss: ₹0.80 crore, compared to a net profit of ₹0.17 crore in FY24.

- Sales: Increased by 11.97% to ₹9.54 crore from ₹8.52 crore in FY24.

Quarterly Performance Trends

- December 2024 Quarter: The company showed better performance, reporting a 24.99% increase in net sales to ₹2.70 crore and a 101.76% rise in net profit to ₹0.54 crore. EBITDA also grew by 55%.

- June 2024 Quarter: Net profit rose by 242.86% to ₹0.48 crore from ₹0.14 crore in the previous year's quarter. Sales increased by 30.57% to ₹2.52 crore.

Key Financial Ratios and Metrics:

- PE Ratio: 0 (as of May 26, 2025)

- PB Ratio: 1.15 (as of May 26, 2025)

- Revenue (FY25): ₹9.54 Cr (Note: The provided value ₹11.2 Cr might be an older figure or represent a different period)

- Profit (FY25): ₹-0.80 Cr (Note: The provided value ₹0.92 Cr might be an older figure or represent a different period)

- Dividend: The company does not pay dividends to its shareholders.

- Return on Equity (ROE): Low at 0.96% over the last 3 years.

- Net Income (Last Quarter Reported): ₹5.39 M (Note: This figure seems significantly higher than the reported consolidated revenue/profit for Q4FY25, potentially referring to a specific segment or an older data point. The Q4FY25 reported Net Loss was ₹2.05 crore or INR -20.5 Million).

- Net Income Change: Accounts for a 128.28% change compared to the quarter before (referring to the higher net income figure).

Corporate Structure and Management

- Employee Count: As of April 30, 2025, the company has 35 employees.

- Restructuring: The company is undergoing internal restructuring and consolidation of similar operations to achieve global standards and enhance transparency.

- Subsidiary Merger: Khandwala Finances Ltd., a wholly owned subsidiary, is being merged with the parent company.

- Debt Status: The company maintains a debt-free status and has actively reduced its debt.

Investment Philosophy and Client Approach

Khandwala Securities Ltd. emphasizes a disciplined approach to investment strategy for sustainable wealth creation and maximization. With nearly 90 years of experience, the firm is proficient in providing unbiased advisory, detailed analysis, and dynamic research. KSL understands that each investor's needs and goals are unique, and thus, it focuses on delivering comprehensive and personalized services.

The core investment philosophy is encapsulated by the principle: "Never risk 99% of investor's wealth for 1% fee." The company believes that sustainable wealth is created through a disciplined approach and patience.

Khandwala Securities continues to serve both institutional and retail clients through its diversified financial services platform. While recent financial performance indicates challenges, the company is actively addressing these through its ongoing restructuring efforts.