BSE:538928

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Executive Summary

Karnavati Finance Limited, a non-banking finance company, provides various financial services in India.


Snowflake Analysis

Mediocre balance sheet with poor track record.


Similar Companies

Share Price & News

How has Karnavati Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 538928's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

538928

2.7%

IN Consumer Finance

2.4%

IN Market


1 Year Return

-22.7%

538928

1.3%

IN Consumer Finance

5.1%

IN Market

Return vs Industry: 538928 underperformed the Indian Consumer Finance industry which returned 1.3% over the past year.

Return vs Market: 538928 underperformed the Indian Market which returned 5.1% over the past year.


Shareholder returns

538928IndustryMarket
7 Day5.0%2.7%2.4%
30 Day4.4%2.9%5.2%
90 Day-5.7%40.3%21.1%
1 Year-22.7%-22.7%4.1%1.3%7.0%5.1%
3 Year-39.3%-39.3%42.6%34.0%4.8%-0.2%
5 Year92.9%92.9%180.7%156.3%30.4%20.7%

Price Volatility Vs. Market

How volatile is Karnavati Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Karnavati Finance undervalued compared to its fair value and its price relative to the market?

171.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 538928's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 538928's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 538928 is poor value based on its PE Ratio (171.8x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 538928 is poor value based on its PE Ratio (171.8x) compared to the Indian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 538928's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 538928 is overvalued based on its PB Ratio (1.3x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Karnavati Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Karnavati Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Karnavati Finance performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538928 has a large one-off loss of ₹14.5M impacting its March 31 2020 financial results.

Growing Profit Margin: 538928's current net profit margins (4.3%) are lower than last year (43.5%).


Past Earnings Growth Analysis

Earnings Trend: 538928 has become profitable over the past 5 years, growing earnings by 13.7% per year.

Accelerating Growth: 538928's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538928 had negative earnings growth (-85.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (-3.4%).


Return on Equity

High ROE: 538928's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Karnavati Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 538928's short term assets (₹243.5M) exceed its short term liabilities (₹1.3M).

Long Term Liabilities: 538928's short term assets (₹243.5M) exceed its long term liabilities (₹117.0M).


Debt to Equity History and Analysis

Debt Level: 538928's debt to equity ratio (89.7%) is considered high.

Reducing Debt: 538928's debt to equity ratio has increased from 3.7% to 89.7% over the past 5 years.

Debt Coverage: 538928's debt is well covered by operating cash flow (43%).

Interest Coverage: Insufficient data to determine if 538928's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Karnavati Finance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 538928's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 538928's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 538928's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 538928's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 538928's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Jay Morzaria (31 yo)

6.08yrs

Tenure

₹600,000

Compensation

Mr. Jay Ramanbhai Morzaria has been Managing Director and Director at Karnavati Finance Limited since July 1, 2014 and September 15, 2010 respectively. Mr. Morzaria serves as the Chairman at Karnavati Fina ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD8.04K) is below average for companies of similar size in the Indian market ($USD49.39K).

Compensation vs Earnings: Jay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Morzaria
Chairman & MD6.08yrs₹600.00k11.52%
₹ 21.9m
Kush Morzaria
Chief Financial Officer2.42yrs₹300.00k14.71%
₹ 28.0m
Nitixaben Ramanuj
Compliance Officer & Company Secretary2.75yrs₹325.00kno data
Ramanbhai Morzaria
Finance Head & Whole-Time Director18.92yrs₹600.00k29.2%
₹ 55.5m
Dipti Gandhi
Accounts Manager6.33yrsno datano data
Niraj Monani
Marketing Manager8.25yrs₹108.00kno data
Prakashbhai Jethva
Senior Managerno data₹84.00kno data
Bhavesh Mandalia
Manager of Jamnagarno data₹108.00k1.79%
₹ 3.4m

6.1yrs

Average Tenure

35.5yo

Average Age

Experienced Management: 538928's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Morzaria
Chairman & MD6.08yrs₹600.00k11.52%
₹ 21.9m
Ramanbhai Morzaria
Finance Head & Whole-Time Director18.92yrs₹600.00k29.2%
₹ 55.5m
Brimda Bilimoria
Non-Executive Independent Women Director2yrsno datano data
Parth Maniar
Non-Executive Independent Director1.92yrsno datano data
Kashyap Vyas
Additional Non- Independent Non-Executive Director0.25yrno datano data

2.0yrs

Average Tenure

31yo

Average Age

Experienced Board: 538928's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Karnavati Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Karnavati Finance Limited
  • Ticker: 538928
  • Exchange: BSE
  • Founded: 1984
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹189.945m
  • Shares outstanding: 10.05m
  • Website: https://www.karnavatifinancelimited.com

Number of Employees


Location

  • Karnavati Finance Limited
  • Vraj Building
  • 5th Floor
  • Jamnagar
  • Gujarat
  • 361001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538928BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2015

Biography

Karnavati Finance Limited, a non-banking finance company, provides various financial services in India. The company provides business loans to businessmen; micro, small, and medium enterprises (MSMEs); and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 12:44
End of Day Share Price2020/08/11 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.