About the Stock

Since its inception in 2008, Kamdhenu Paints has emerged as a prominent division within Kamdhenu Limited, a leader in the building and construction industry. The company offers a diverse range of decorative paint solutions, including Exterior and Interior Emulsions, Cement Paints, and Water-based Primers, catering to various aesthetic preferences and functional needs.

In its commitment to sustainability, Kamdhenu Paints has earned GRIHA certification for products like Kamo Dual and Richlook. This recognition highlights their dedication to eco-friendly practices. By combining advanced technology, customer-centric strategies, and a strong environmental focus, Kamdhenu Paints embodies the ethos of ‘Desh Ka Naya Rang’ (The New Color of the Nation).

Business Model

• Kamdhenu Paints’ success is based on providing high-quality products at cost-effective prices.
• The brand is well-known nationwide for its superior quality paints, serving both commercial and residential markets.
• Positive customer feedback has led to the expansion of their product range to meet various needs.
• In addition to being affordable, Kamdhenu Paints benefits from a robust distribution network, ensuring widespread availability across the country.

Company Valuation
Sector	Consumer Durables
NSE	KAMOPAINTS
BSE	543747
Market Capitalization	Rs 1,459 Crore (As of Sept 04, 2024)
Book Value Per Share	Rs 5.07
Face Value	Rs 1
52 week H/L	49.00 / 27.00
Dividend Yield (%)	—

Shareholding Pattern
Particulars	Dec-23	Mar-24	Jun-24
Foreign Promoters %	0	0	0
Indian Promoters %	50.33	50.33	50.33
DIIs %	0	-0.01	-0.01
FIIs %	16.83	10.53	6.07
Others %	32.84	39.15	43.61

Ratios (Consolidated)
Particulars	Mar 2021	Mar 2022	Mar 2023	Mar 2024
ROCE %	–	–	–	11.99
ROE %	–	–	–	11.55
ROA %	–	–	–	5.65
Interest Coverage Ratio	–	–	–	6.35
D/E	9.52	–	0.69	0.12
P/B	–	–	6.86	6.57

Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Share Capital	0	0	13	31
Reserves	0	0	67	128
Borrowings	0	0	56	20
Other Liabilities	0	0	83	91
Total Liabilities	0	0	219	271
Fixed Assets	0	0	45	44
Capital WIP	0	0	1	0
Investments (Long Term)	0	0	0	0
Other Assets	0	0	174	226
Total Assets	0	0	219	271

Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	0	0	260	292	284
Other Income	0	0	0	1	0
Expenses	0	0	260	269	263
Operating Profit	0	0	0	24	22
OPM%	–	–	0	8	8
Interest	0	0	6	3	2
Depreciation	0	0	5	5	4
Profit Before Tax	0	0	-11	16	16
Tax%	0	0	-2	13	16
Net Profit	0	0	-11	14	13
PATM%	0	0	-4	5	5

Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	0	0	0	-16
Cash from Investing Activity	0	0	-3	-6
Cash from Financing Activity	0	0	-4	26
Net Cash Flow	0	0	-8	5

Q1FY25 Result Update:

• Revenue for Q1 FY25: ₹55 Crores, down by 12% YoY.
• Decrease Reason: Reduced demand due to general elections and extreme heatwave affecting construction and painting activities.
• EBITDA: ₹3.9 Crores, with a decline of 3%.
• PAT: ₹1.6 Crores, down by 26%.

Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	62	66	79	85	54
Other Income	1	0	0	0	0
Expenses	58	61	73	78	51
Operating Profit	5	5	6	7	4
OPM%	7	8	8	9	7
Interest	1	1	0	0	1
Depreciation	1	1	1	1	1
Profit Before Tax	2	3	5	6	2
Tax%	2	-6	13	28	28
Net Profit	2	3	4	4	2
PATM%	3	5	5	5	3

Conclusion:

Despite the challenges faced in Q1 FY25, including reduced demand influenced by the general elections and extreme weather conditions, Kamopaints remains resilient. The company’s efforts to adapt and address these external factors will be key to future growth. The commitment to navigating through these obstacles demonstrates Kamopaints’ potential to recover and thrive as market conditions improve. With strategic adjustments and a focus on long-term goals, Kamopaints is well-positioned to capitalize on future opportunities and drive positive performance.