Kamdhenu Limited employs a franchise-oriented operational strategy throughout India, aiming to strengthen countless households daily with a comprehensive range of products. Specializing in TMT steel bars across diverse sectors, the company is dedicated to continual improvement and solidifying its position in the steel industry. Guided by the visionary leadership of Shri Satish Kumar Agarwal, Kamdhenu Limited draws inspiration from his guidance in achieving sustained growth and success.
Business Model:
Franchisee Model Innovation: Kamdhenu Limited introduced the Franchisee Model in the middle-tier steel segment, pioneering regional success.
Market Analysis and Support: Through rigorous market research, Kamdhenu categorizes steel manufacturers, offering comprehensive support in technology, quality assurance, consistency, and marketing of Kamdhenu’s product portfolio.
Mutually Beneficial Concept: This model benefits both franchisee units, leveraging Kamdhenu’s brand prestige and extensive marketing network, while Kamdhenu Limited earns royalties from franchisees using its brand name.
Identity and Competition: Franchisee units gain a distinct identity, enhancing operational efficiency and quality, thereby bolstering resilience against competitive pressures in the steel sector.
Customer-Centric Focus: Ultimately, customers benefit from access to high-quality products at competitive prices through Kamdhenu’s franchisee network.
Transformative Impact: Kamdhenu’s Franchisee Business Model is reshaping regional business dynamics, empowering partners to elevate performance, increase productivity, and operate more efficiently.
Company Valuation
Sector
Capital Goods
NSE
KAMDHENU
BSE
532741
Market Capitalization
Rs 1,464 Crore (As of July 07, 2024)
Book Value Per Share
Rs 85.87
Face Value
Rs 10
P/E ratio
28.85
52 week H/L
668.70 / 259.95
Dividend Yield (%)
0.38
Shareholding Pattern
Particulars
Jun-23
Sept-23
Dec-23
Mar-24
Foreign Promoters %
0
0
0
0
Indian Promoters %
58.74
58.74
58.74
58.74
DIIs %
0.22
0.39
0.19
0.18
FIIs %
0.44
0.58
0.58
4
Others %
40.6
40.29
40.49
37.08
Ratios (Standalone)
Particulars
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
ROCE %
18.65
4.14
11.88
15.33
23.76
ROE %
14.7
1.05
8.07
12.75
20.98
ROA %
5.69
0.43
3.37
6.03
12.28
Interest Coverage Ratio
3.98
0.96
2.5
4.35
29.38
D/E
0.5
0.66
0.48
0.4
0
P/B
2.46
0.7
1.92
2.86
5.06
Balance Sheet (Standalone Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Share Capital
26
27
27
27
27
Reserves
151
153
168
191
140
Borrowings
88
118
94
87
0
Other Liabilities
149
166
143
137
42
Total Liabilities
415
464
431
442
209
Fixed Assets
90
86
91
93
47
Capital WIP
1
1
1
1
0
Investments (Long Term)
3
3
2
2
5
Other Assets
322
374
337
346
157
Total Assets
415
464
431
442
209
Profit & Loss (Standalone Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
TTM
Sales
1,232
962
625
841
732
725
Other Income
0
1
3
2
2
14
Expenses
1,179
917
575
782
672
666
Operating Profit
54
45
54
61
62
74
OPM%
4
5
9
7
8
10
Interest
12
12
14
10
2
0
Depreciation
7
8
9
9
5
4
Profit Before Tax
35
0
21
35
55
67
Tax%
36
518
28
25
25
26
Net Profit
22
2
15
26
41
50
PATM%
2
0
2
3
6
7
Cash Flows (Standalone Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Cash from Operating Activity
25
-3
50
44
67
Cash from Investing Activity
-26
-19
-10
-14
-4
Cash from Financing Activity
2
15
-41
-20
-55
Net Cash Flow
1
-7
0
10
8
Q4 FY24 Result Update:
Revenue and Profit Growth: Kamdhenu achieved a 5.48% year-over-year increase in revenue and a notable 55.73% year-over-year rise in profit.
Quarterly Performance: Compared to the previous quarter, Kamdhenu saw a 13.55% growth in revenue and a 50.39% increase in profit, indicating robust performance in the latest quarter.
Selling, General & Administrative Expenses: Expenses in this category increased by 1.49% quarter-over-quarter and 10.13% year-over-year.
Operating Income: Kamdhenu’s operating income showed positive growth, with a 12.79% increase quarter-over-quarter and a 4.63% rise year-over-year.
Earnings Per Share (EPS): The EPS for Q4 reached ₹6.2, marking a substantial 55.38% year-over-year growth, reflecting improved profitability for the company.
Quarterly Results (Standalone Figures in Rs. Crores)
Particulars
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Sales
183
167
209
185
155
176
Other Income
1
1
2
2
2
8
Expenses
166
152
193
172
141
160
Operating Profit
18
16
18
15
17
24
OPM%
10
10
8
8
11
13
Interest
0
0
0
0
0
0
Depreciation
1
1
1
1
1
1
Profit Before Tax
16
14
16
14
15
22
Tax%
15
25
26
25
26
25
Net Profit
12
11
12
10
11
17
PATM%
7
6
6
6
7
10
Conclusion:
A thorough fundamental analysis of Kamdhenu Limited reveals a promising outlook for the company’s future. Anchored by a resilient franchise-driven operational model and a diverse portfolio, especially in the TMT steel bar segment, Kamdhenu is well-positioned for ongoing growth. The company’s dedication to excellence, innovation, and effective leadership under Shri Satish Kumar Agarwal’s direction places it in a strong competitive position within the steel industry. With ambitions to expand and solidify its market footprint, Kamdhenu Limited is poised for sustained success and significant value generation for its stakeholders.
