20% Upper Circuit: Microcap stock skyrockets after promoter increases stake

A micro-cap stock in investment banking, corporate advisory, and ESOP advisory services surged 20 percent on Tuesday morning after Promoter Vineet Suchanti, a shareholder of NSS Digital Media Limited, increased his stake in the company.

Share Price Movement 

During Tuesday’s trading session, Keynote Financial Services Ltd’s share price hit an intraday high of Rs.299.37 apiece, hitting a 20 percent upper circuit from the previous close of Rs.249.48 apiece. Over the past five years, the stock has delivered over 900 percent returns.

What Happened

Vineet Suchanti, a shareholder of NSS Digital Media Limited, has announced the proposed acquisition of 1,59,880 equity shares in Keynote Financial Services Limited. This acquisition will occur through a gift transfer of 45.68 percent of the shares, originating from Mr. Nirmal Harschand Suchanti and Mrs. Pushpa Nirmal Suchanti, who each hold 79,940 equity shares (22.84 percent) of NSS Digital Media Limited.

Mr. Vineet Nirmal Suchanti, the acquirer, is the son of Mr. Nirmal Harschand Suchanti and Mrs. Pushpa Nirmal Suchanti, who are existing shareholders of NSS Digital Media Limited. As immediate relatives of the transferors, the acquirers are members of the Promoter Group of NSS Digital Media Limited.

The proposed acquisition is set to take place on or after March 28, 2025. Vineet Suchanti will acquire 79,440 equity shares each from both Mrs. Pushpa Nirmal Suchanti and Mr. Nirmal Harschand Suchanti. Following this acquisition, Mr. Vineet Nirmal Suchanti will hold 45.68 percent of the shares, resulting in an indirect acquisition of 25.54 percent, bringing his total direct and indirect shareholding in NSS Digital Media Limited to 32.92 percent.

Also read: Stocks under ₹50 in focus after promoters increases stake in the company

Services Offered

Keynote Financial Services offers a variety of services, including investment banking with expertise in mergers and acquisitions (M&A), IPOs, and rights issues. Their corporate advisory includes solutions for restructuring, valuations, and fairness opinions, while their equity capital markets services cover Qualified Institutional Placements (QIPs), Global Depository Receipts (GDRs), and American Depository Receipts (ADRs).

Additionally, the company provides non-banking financial services, such as loans against shares, property loans, and SME working capital loans. 

Financial Overview

According to its recent financial updates, Keynote Financial Services Limited reported consolidated revenue of Rs.6.65 crores in Q3 FY25, marking a 52 percent decrease from Rs.13.95 crores in Q3 FY24. Similarly, the net profit of the company reduced 42 percent to Rs.5.63 crores, from Rs.9.77 crores in the same period last year. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 26.43 percent and a Return on Equity (ROE) of 21.88 percent. Its Price-to-Earnings (P/E) ratio stands at 6.53, lower than the industry average of 24.15. Furthermore, the company maintains an EV to Sales ratio of 3.59, and an Earnings Per Share (EPS) of Rs.37.91. 

Written by – Siddesh S Raskar

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