Keystone Realtors (RUSTOMJEE) | News Based Sentiment Analysis

• On September 10, 2025, Keystone Realtors’ Board of Directors approved raising funds up to INR 3,75,00,00,000 through NCDs, signaling a proactive approach to securing capital for future expansion. This decision followed a slight dip in the share price to ₹605, suggesting investor sensitivity to potential dilution.
• Despite exceeding their full-year pre-sales guidance with over ₹7,700 crore already secured – surpassing their ₹6,000 crore target – the company reported a substantial 43.80% year-on-year decline in net profit to ₹14.51 crore in Q1 FY25-26 (reported September 6th and 10th). This disconnect between strong sales and reduced profitability is a key concern for investors.
• Q1 FY25-26 results revealed significant declines: revenue decreased by 53.30% QoQ to ₹273.12 crore, operating profit fell 67.63% QoQ to ₹22.68 crore, and net profit plummeted 77.61% QoQ (reported September 6th and 10th). These declines raise questions about cost control and operational efficiency.
• A property transaction within Rustomjee Paramount on September 8, 2025, saw Bollywood actor Tiger Shroff sell an apartment for ₹15.6 crore, realizing a profit of ₹3.98 crore. This transaction highlights continued demand for properties within Keystone’s developments and reinforces the value of their real estate portfolio.
• Analysts predict an average one-year price target for Keystone Realtors at INR 884, with a range of INR 863.55 to INR 918.75 (September 2025). This suggests a projected revenue CAGR of 14% and a net income CAGR of 63% over the next three years.
• On September 15, 2025, the share price was trading at ₹610.55, a 0.38% increase from the previous closing price of ₹608.25, and the company allotted 13,581 shares. This slight increase suggests some stabilization after the initial reaction to the fundraising announcement.
• Technical analysis from September 18, 2025, indicates a short-term bearish trend, with the stock trading below a key moving average at a price of ₹609.10. An intraday buy trade is suggested with a target of ₹614.68 and a stop-loss at ₹596.4, but a bearish move is expected below ₹596.4.

The Investment Story: September 2025 was a month of contrasts for Keystone Realtors, marked by strong pre-sales and a fundraising initiative, but overshadowed by a significant drop in profitability and mixed signals from technical analysis. The company is actively working to address investor concerns and secure capital for future growth.

What It Means for Investors: The primary concern remains the disconnect between robust sales and declining profits. While the ambitious pre-sales target offers some optimism, investors should closely monitor the company’s ability to improve its bottom line and manage costs effectively. The NCD issuance and bearish technical outlook add layers of complexity.

Looking Ahead: Investors should pay close attention to the details of the NCD offering, the outcome of the Analyst/Investor Meet on September 5th, and the company’s performance in the coming quarters to assess whether profitability can be restored. Monitoring the impact of the new redevelopment projects will also be important.

The Bottom Line: Keystone Realtors presents a complex investment picture. The strong sales momentum and positive outlook for future projects are encouraging, but the recent decline in profitability and the need for fundraising warrant caution. A close watch on financial performance and capital structure decisions is essential.