KAMA Holdings Limited

Industrials — Conglomerates · NSE

₹2,260.00+₹20.60 (+0.92%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

KAMA Holdings Limited engages in technical textiles, chemicals and polymers, aluminum foils, and packaging film businesses. The company operates through Technical Textiles Business, Chemicals Business, Performance Films & Foil Business, and Others segments.

IndustryConglomerates

SectorIndustrials

Employees3

Annual revenue₹15,573 Cr

How does it make money?

Turns over ₹15,573 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹5190.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5190.85 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 12.0% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -30% 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+6%

Margin effect-30%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.9% — barely ahead of inflation
✗ Profit has declined at 9.5% a year

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

87/ 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

6.6x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 93% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -93%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 42970% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 24.2% to 22.3% over 3 years.
Return on equity is falling
ROE has dropped from 21.9% to 11.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.4% to 12.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Profit is decliningFinancial
Net profit is down 26% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 43% against revenue up 6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 93% 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 ₹737 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 24.2% to 22.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 43% against revenue up 6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 1.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 21.9% to 11.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small 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 20%✓ 22.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.9% CAGR
Latest reported year was 31.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹737 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹7,252 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.6x

Cheap

Cheap against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹340.71

Profitable

Profitable on a per-share basis

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

31.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

73.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹737 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.4%

Good

Healthy core-business profitability

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

RSI (14)

52.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,697 Cr	₹13,010 Cr	₹14,497 Cr	₹15,573 Cr	+1.9%
EBITDA	₹3,562 Cr	₹2,633 Cr	₹2,767 Cr	₹3,472 Cr	-0.9%
EBITDA Margin	24.2%	20.2%	19.1%	22.3%	—
PAT (Net Profit)	₹1,254 Cr	₹874 Cr	₹632 Cr	₹931 Cr	-9.5%
EPS	₹390.31	₹272.27	₹196.86	₹290.04	-9.4%
ROE	21.9%	13.2%	8.7%	11.6%	—
ROCE	19.4%	11.9%	10.8%	12.0%	—
Total Debt	₹4,457 Cr	₹5,022 Cr	₹4,716 Cr	₹5,078 Cr	+4.4%
Free Cash Flow	₹2 Cr	-₹93 Cr	₹1,298 Cr	₹737 Cr	+655.2%

🟡 Revenue has been broadly flat over 3 years (1.9% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🔴 EBITDA Margin has fallen from 24.2% to 22.3% over 3 years (-1.9 pts).

🔴 PAT (Net Profit) has shrunk at 9.5% a year over 3 years.

🔴 EPS has shrunk at 9.4% a year over 3 years.

🔴 ROE has fallen from 21.9% to 11.6% over 3 years (-10.3 pts).

🔴 ROCE has fallen from 19.4% to 12.0% over 3 years (-7.3 pts).

🔴 Total Debt has grown at 4.4% a year over 3 years.

🟢 Free Cash Flow has grown at 655.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25,231 Cr

Total Liabilities

₹10,228 Cr

Cash & Equivalents

₹595 Cr

Operating Cash Flow

₹2,561 Cr

Capex

-₹1,824 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.7%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Kama Holdings Ltd. 52 Week Low Streak: Key Stock Analysis

Univest, 25 Sept

KAMAHOLD Stock Price and Chart — NSE:KAMAHOLD

TradingView, 20 Apr

KAMA Realty completes ₹809.6 crore SRF stake acquisition in final tranche

scanx.trade, 24 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Compare KAMA HOLDINGS with

Equitymaster, 30 Sept

SRF shares fall 4% as promoter Kama Holdings set to sell 3% stake in open market

Moneycontrol.com, 17 FebPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Over 18% dip in YTD | Delhi-based realty company is bullish on this beaten-down stock — do you own?

Livemint, 10 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑