Kamadgiri Fashion Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹97.00+₹0.70 (+0.73%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Kamadgiri Fashion Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kamadgiri Fashion Limited engages in the manufacture and sale of fabrics and ready to wear garments primarily in India. The company offers suiting and shirting fabrics; and casual and formal shirts and trousers. It provides its products under Incasso brand name.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees237

Annual revenue₹157 Cr

How does it make money?

Turns over ₹157 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 237 employees supports ₹66.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹66.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -43% while net margin moved +269% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-43%

Margin effect+269%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.7% is below 10% — capital is not working hard
✗ ROCE has fallen by 9.8 points — returns are eroding
✗ EBITDA margin of 4.6% is thin — little cushion if costs rise
✗ Net margin of 1.9% is slim

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

18.8x

3Y Median

38.7x

40 monthly readings · mean 38.6x · range 18.5x–63.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 38.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 73% below the peer median of 69.2x.

vs. its own history

Cheap

38.7x median over 40 months · -52%

vs. sector peers

Cheap

69.2x median of 4 peers · -73%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.0x

PEG

0.67

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 76% over 3 years.
Return on equity is rising
ROE has improved from 4.1% to 7.8%.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 18.5% to 8.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 76% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹57 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.17

Profitable

Profitable on a per-share basis

ROE

7.8%

Weak

Weak capital efficiency

ROCE

8.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

6.5%

Modest

Modest growth

Profit Growth (YoY)

3.8%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.4%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

101.8 / 108.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹278 Cr	₹216 Cr	₹177 Cr	₹157 Cr	-17.3%
EBITDA	₹17 Cr	₹7 Cr	₹8 Cr	₹7 Cr	-24.1%
EBITDA Margin	6.0%	3.0%	4.5%	4.6%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	₹1 Cr	₹3 Cr	+27.8%
EPS	₹2.51	₹-2.4	₹2.04	₹5.25	+27.9%
ROE	4.1%	-4.1%	3.4%	7.8%	—
ROCE	18.5%	12.0%	11.6%	8.7%	—
Total Debt	₹66 Cr	₹42 Cr	₹27 Cr	₹16 Cr	-37.5%
Free Cash Flow	₹16 Cr	₹23 Cr	₹20 Cr	₹9 Cr	-18.6%

🔴 Revenue has shrunk at 17.3% a year over 3 years.

🔴 EBITDA has shrunk at 24.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.0% to 4.6% over 3 years (-1.4 pts).

🟢 PAT (Net Profit) has grown at 27.8% a year over 3 years.

🟢 EPS has grown at 27.9% a year over 3 years.

🟢 ROE has risen from 4.1% to 7.8% over 3 years (+3.7 pts).

🔴 ROCE has fallen from 18.5% to 8.7% over 3 years (-9.8 pts).

🟢 Total Debt has shrunk at 37.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 18.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.2%

Corporate Actions

Ex-Dividend Date

16 Sept 2019

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Kamadgiri Fashion Ltd is Rated Sell

MarketsMojo, 12 Oct

Kamadgiri Fashion: Asha Devi Goenka Acquires Additional Shares, Increases Stake

scanx.trade, 10 Mar

Paras Petrofils Ltd. (PARASPETRO) Share Price Surges 10% Today

Univest, 27 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Kamadgiri Fashion Reports 33.7% Decline in Q3FY26 Net Profit to ₹66.48 Lakhs

scanx.trade, 04 Feb

Q1 results 2026: Swiggy to IRFC among companies to declare Q1 results today; full list here

Livemint, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Q4FY26 Results Today: Adani Power, Vedanta, Bajaj Finance, Waaree Energies Among 50+ Firms To Report Earnings On April 29

NDTV Profit, 28 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑