BSE:538928

Stock Analysis Report

Executive Summary

Karnavati Finance Limited operates as a non-banking finance company in India.

Snowflake

Fundamentals

Questionable track record with imperfect balance sheet.

Risks

  • Karnavati Finance has significant price volatility in the past 3 months.
  • Karnavati Finance is not covered by any analysts.

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


Market Performance


7 Day Return

-3.9%

BSE:538928

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

n/a

BSE:538928

-3.2%

IN Consumer Finance

-14.7%

IN Market

No trading data on 538928.

No trading data on 538928.


Share holder returns

538928IndustryMarket
7 Day-3.9%-3.6%-2.1%
30 Day-14.7%1.9%-3.9%
90 Day-31.5%-10.2%-10.1%
1 Yearn/a-2.5%-3.2%-12.9%-14.7%
3 Year97.5%97.5%59.3%56.0%17.7%11.5%
5 Yearn/a233.9%218.2%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

33.56x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Karnavati Finance to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Karnavati Finance to establish if it is available at substantial discount.


Price Based on Earnings

Karnavati Finance is overvalued based on earnings compared to the IN Consumer Finance industry average.

Karnavati Finance is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Karnavati Finance, we can't assess if its growth is good value.


Price Based on Value of Assets

Karnavati Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Karnavati Finance is high growth as no revenue estimate data is available.

Karnavati Finance's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Unable to compare Karnavati Finance's revenue growth to the India market average as no estimate data is available.

Karnavati Finance's earnings growth is positive but not above the India market average.

Karnavati Finance's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Karnavati Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Karnavati Finance performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Karnavati Finance has delivered over 20% year on year earnings growth in the past 5 years.

Karnavati Finance's 1-year earnings growth is less than its 5-year average (24.4% vs 33.8%)

Karnavati Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (24.4% vs 15%).


Return on Equity

Karnavati Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Karnavati Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Karnavati Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Karnavati Finance's financial position?


Financial Position Analysis

Karnavati Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Karnavati Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Karnavati Finance's level of debt (128.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (2.2% vs 128.4% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Karnavati Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Karnavati Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Karnavati Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Karnavati Finance has not reported any payouts.

Unable to verify if Karnavati Finance's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Karnavati Finance has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Karnavati Finance's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Jay Morzaria (30yo)

5.1yrs

Tenure

₹375,000

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

Jay's remuneration is lower than average for companies of similar size in India.

Jay's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.1yrs

Average Tenure

34.5yo

Average Age

The average tenure for the Karnavati Finance management team is over 5 years, this suggests they are a seasoned and experienced team.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹1,866,18104 Apr 19
Ramanbhai Morzaria
EntityIndividual
Role
Member of the Board of Directors
Finance Head & Whole-Time Director
Shares61,508
Max Price₹30.70

Ownership Breakdown


Management Team

  • Jay Morzaria (30yo)

    Chairman & MD

    • Tenure: 5.1yrs
    • Compensation: ₹375.00k
  • Raman Morzaria (57yo)

    Finance Head & Whole-Time Director

    • Tenure: 17.9yrs
    • Compensation: ₹750.00k
  • Prakashbhai Jethva (50yo)

    Senior Manager

    • Tenure: 0.0yrs
    • Compensation: ₹84.00k
  • Bhavesh Mandalia (44yo)

    Manager of Jamnagar

    • Tenure: 0.0yrs
    • Compensation: ₹108.00k
  • Niraj Monani (33yo)

    Marketing Manager

    • Tenure: 7.3yrs
    • Compensation: ₹108.00k
  • Dipti Gandhi (36yo)

    Accounts Manager

    • Tenure: 5.3yrs
  • Nitixa Ramanuj (28yo)

    Compliance Officer & Company Secretary

    • Tenure: 1.8yrs
    • Compensation: ₹258.00k
  • Kush Morzaria (28yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: ₹300.00k

Board Members

  • Jay Morzaria (30yo)

    Chairman & MD

    • Tenure: 5.1yrs
    • Compensation: ₹375.00k
  • Raman Morzaria (57yo)

    Finance Head & Whole-Time Director

    • Tenure: 17.9yrs
    • Compensation: ₹750.00k
  • Brimda Bilimoria (43yo)

    Non-Executive Additional Women Independent Director

    • Tenure: 1.0yrs
  • Parth Maniar (27yo)

    Non-Executive Independent Director

    • Tenure: 0.0yrs

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: ₹236.175m
  • 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 operates as a non-banking finance company in India. The company provides business loans to businessmen, micro, small and medium enterprises, and entrepreneurs, as well as individu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 13:03
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.