Karnavati Finance Ltd

Karnavati Finance Ltd (KARNAVATI) is a micro-cap Financial Services company valued at ₹14 crore operating in NBFC on the NSE and BSE.

Recent price move

Karnavati Finance Ltd last traded at ₹1.39, sharply up 5.30% on the day.

Financial performance

The company's business is deteriorating, with annual net profit worsening from a loss of ₹2 crore to ₹6 crore. The latest quarter shows a net profit margin of -111.1%, and return on equity and return on capital employed are both negative, indicating poor profitability and efficiency.

Valuation multiples

The stock trades at 19.3 times earnings, broadly in line with the Financial Services median of 19.3, 3.13 times book value.

Things to watch

The company's net profit has swung from a profit to a loss over three years, and the net profit margin is extremely negative. The low interest coverage ratio and high debt to equity ratio suggest significant financial risk.

Where it stands

The DocStoX verdict of avoid follows from the company's severe financial distress, including a widening annual net loss and negative return metrics. The most critical factor is the extreme negative net profit margin, which signals unsustainable operations.

Summarised by DocStoX's model on 2026-09-08 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.