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Check Before You Invest : Keystone Realtors Ltd

BSE: 543669 NSE: RUSTOMJEE ISIN: INE263M01029
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Keystone Realtors Ltd belong to?
Keystone Realtors Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Keystone Realtors Ltd a good quality company?
Keystone Realtors Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Keystone Realtors Ltd undervalued or overvalued?
Keystone Realtors Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 121.79 61.48
Price to Book 1.92 2.97
Price to Sales 7.42 8.53
EV to EBITDA 51.1 41.53
Q.4 Is Keystone Realtors Ltd a good buy now?
Keystone Realtors Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Keystone Realtors Ltd?
Keystone Realtors Ltd revenue growth is -45.5% for FY-2025, which is below its 5-year CAGR of -1.77%, indicating slower growth.

Q.2 Gross Profit margin of Keystone Realtors Ltd?
Keystone Realtors Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.6% for FY-2025, which is above its 5-year median of 18.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Keystone Realtors Ltd?
Keystone Realtors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.18% for FY-2025, which is below its 5-year median of 6.65% indicating decreasing margins.

Q.4 Net Profit Margin of Keystone Realtors Ltd?
Keystone Realtors Ltd Net Profit Margin is 16.97% for FY-2025, is above its 5-year median of 14.1%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 25.6 18.7
Operating Profit Margin (%) -2.18 6.65
Net Profit Margin (%) 16.97 14.1

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Keystone Realtors Ltd?
Keystone Realtors Ltd Return on Asset is 2.48%, which is below its 5-year historical median of 3.28%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Keystone Realtors Ltd?
Keystone Realtors Ltd Return on capital employed is 6.82% for FY-2025, which is below its 5-year historical median of 8.92%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Keystone Realtors Ltd?
Keystone Realtors Ltd Return on equity is 4.54% for FY-2025, which is below its 5-year historical median of 7.13%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Keystone Realtors Ltd?
Keystone Realtors Ltd Cash conversion cycle is 554 days, in line with its 5-year historical median of 554 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.15 0.3
ROE (%) 4.54 7.13
ROCE (%) 6.82 8.92
Cash Conversion Cycle 554 days 554 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Keystone Realtors Ltd?
Keystone Realtors Ltd Debt-to-Equity ratio is 0.14, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Keystone Realtors Ltd?
Keystone Realtors Ltd Debt to cash flow from operations is -1.97, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Keystone Realtors Ltd?

Q.1 Promoter shareholding and pledge status of Keystone Realtors Ltd?
Promoters hold 74.59% of the Keystone Realtors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Keystone Realtors Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Keystone Realtors Ltd vs industry peers?
Keystone Realtors Ltd revenue CAGR is -1.77%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -45.5 0
Gross Profit Growth (%) -7.2 14.9
Operating Profit Growth (%) -121.7 10.4
Net Profit Growth (%) -17 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.15 0.1
ROE (%) 4.54 1.36
ROCE (%) 6.82 3.88
Cash Conversion Cycle (days) 554.18 439

Valuation & price assessment

Q.1 Stock return of Keystone Realtors Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -7.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -7.3% -22.7%
Q.2 Valuation ratios of Keystone Realtors Ltd vs historical?
The current P/E ratio of 121.79 is higher than its historical median of 61.48, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 121.79 61.48 33.43
Price to Book 1.92 2.97 1.53
Price to Sales 7.42 8.53 5.23
EV to EBITDA 51.1 41.53 14.43

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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