Kamdhenu Limited

Basic Materials — Steel · NSE

₹38.27+₹0.34 (+0.90%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kamdhenu Limited engages in manufacturing, marketing, branding, and distribution of thermo mechanical treatment (TMT) bars, structural steel, and allied products under the Kamdhenu brand name in India.

IndustrySteel

SectorBasic Materials

Employees618

Annual revenue₹763 Cr

How does it make money?

Turns over ₹763 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 618 employees supports ₹1.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.8% against a peer median of 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved +83% 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+4%

Margin effect+83%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.58 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

81/ 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

12.8x

3Y Median

16.8x

40 monthly readings · mean 20.2x · range 7.9x–40.3x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 16.8x. 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 30% below the peer median of 18.2x.

vs. its own history

Cheap

16.8x median over 40 months · -24%

vs. sector peers

Cheap

18.2x median of 4 peers · -30%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.5x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.4% to 14.6% over 3 years.
High return on capital employed
ROCE of 25.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 24.6% to 19.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.7% to 25.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 151% over 3 years, from ₹4 Cr to ₹9 Cr.
🔴High leverageFinancial
Debt/Equity of 2.38x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.4% to 14.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 24% 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 30% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 2.38x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 1.4% 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 24.6% to 19.8%. 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
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 13%✓ 14.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 9.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹54 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹1,079 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.8x

Cheap

Cheap against the generic band

P/B Ratio

2.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.99

Profitable

Profitable on a per-share basis

ROE

19.8%

Strong

Strong capital efficiency

ROCE

25.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.38x

High

High leverage

Revenue Growth (YoY)

9.0%

Modest

Modest growth

Profit Growth (YoY)

34.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹54 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

3.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.0%

Average

Average margins

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

9.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.58

High swing

Swings more than the market in both directions

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.6 / 37.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹732 Cr	₹725 Cr	₹747 Cr	₹763 Cr	+1.4%
EBITDA	₹61 Cr	₹67 Cr	₹81 Cr	₹112 Cr	+22.0%
EBITDA Margin	8.4%	9.3%	10.8%	14.6%	—
PAT (Net Profit)	₹41 Cr	₹50 Cr	₹61 Cr	₹78 Cr	+24.1%
EPS	₹1.52	₹1.85	₹2.18	₹2.72	+21.3%
ROE	24.6%	21.1%	19.2%	19.8%	—
ROCE	31.7%	27.1%	24.5%	25.6%	—
Total Debt	₹4 Cr	₹3 Cr	₹1 Cr	₹9 Cr	+36.0%
Free Cash Flow	₹61 Cr	₹99 Cr	₹56 Cr	₹54 Cr	-3.9%

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🟢 EBITDA has grown at 22.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 14.6% over 3 years (+6.2 pts).

🟢 PAT (Net Profit) has grown at 24.1% a year over 3 years.

🟢 EPS has grown at 21.3% a year over 3 years.

🔴 ROE has fallen from 24.6% to 19.8% over 3 years (-4.8 pts).

🔴 ROCE has fallen from 31.7% to 25.6% over 3 years (-6.1 pts).

🔴 Total Debt has grown at 36.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 3.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹450 Cr

Total Liabilities

₹53 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹66 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

52.4%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

Kamdhenu Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

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

Could The Market Be Wrong About Kamdhenu Limited (NSE:KAMDHENU) Given Its Attractive Financial Prospects?

Simply Wall Street, 11 Feb

Kamdhenu promoters confirm no new share encumbrance in FY26

scanx.trade, 12 Jun

Kamdhenu Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Kamdhenu vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Market Still Lacking Some Conviction On Kamdhenu Limited (NSE:KAMDHENU)

Simply Wall Street, 19 Dec

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

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. 2 high-severity red flags sit above this conclusion and should be read first.

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