Khadim India Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹117.52−₹2.38 (−1.98%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently 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 Khadim India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Khadim India Limited retails footwear and accessories in India and internationally.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees496

Annual revenue₹367 Cr

How does it make money?

Turns over ₹367 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 496 employees supports ₹73.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.9 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 10.7% 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 -44% while net margin moved -69% 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-44%

Margin effect-69%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 17.3% a year
✗ Profit has declined at 43.8% a year
✗ Profit fell 39.1% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

62/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

77.8x

3Y Median

67.6x

40 monthly readings · mean 63.1x · range 28.5x–109.2x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 15% above its 3y median of 67.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Fair

67.6x median over 40 months · +15%

vs. sector peers

Fair

69.2x median of 4 peers · +12%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

7.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 13.1% to 16.5% over 3 years.
Debt is being paid down
Total debt is down 20% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 7.8% to 1.9% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.9x to 1.2x.
🟡Profit is decliningFinancial
Net profit is down 82% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.1% to 16.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 20% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

The debt load needs earnings to hold up
Debt is 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 7.8% to 1.9%. 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.

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

1EBITDA margin holds above 15%✓ 16.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹216 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

77.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.51

Profitable

Profitable on a per-share basis

ROE

1.9%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.49x

Moderate

Moderate leverage

Revenue Growth (YoY)

-18.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-39.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

8.1x

Improving

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

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

117.7 / 111.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹649 Cr	₹422 Cr	₹414 Cr	₹367 Cr	-17.3%
EBITDA	₹85 Cr	₹95 Cr	₹89 Cr	₹61 Cr	-10.7%
EBITDA Margin	13.1%	22.6%	21.5%	16.5%	—
PAT (Net Profit)	₹17 Cr	₹6 Cr	₹5 Cr	₹3 Cr	-43.8%
EPS	₹9.73	₹3.49	₹2.76	₹1.69	-44.2%
ROE	7.8%	2.6%	2.0%	1.9%	—
ROCE	12.7%	12.6%	11.1%	10.7%	—
Total Debt	₹310 Cr	₹321 Cr	₹295 Cr	₹249 Cr	-7.0%
Free Cash Flow	₹24 Cr	₹41 Cr	₹55 Cr	₹16 Cr	-12.9%

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

🔴 EBITDA has shrunk at 10.7% a year over 3 years.

🟢 EBITDA Margin has risen from 13.1% to 16.5% over 3 years (+3.4 pts).

🔴 PAT (Net Profit) has shrunk at 43.8% a year over 3 years.

🔴 EPS has shrunk at 44.2% a year over 3 years.

🔴 ROE has fallen from 7.8% to 1.9% over 3 years (-5.9 pts).

🔴 ROCE has fallen from 12.7% to 10.7% over 3 years (-2.0 pts).

🟢 Total Debt has shrunk at 7.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 12.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹547 Cr

Total Liabilities

₹380 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

62.8%

Corporate Actions

Ex-Dividend Date

31 Jul 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

1 mixed5 general

Khadim India Upper Circuit Streak: Day 2 Price and Data

Univest, 15 Oct

Pankaj Prasoon lifts Khadim India stake to 6.16% via open market buy

scanx.trade, 06 Oct

Khadim India vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Khadim Share Price Falls Over 8% After Company Indicates Demerger Of Distribution Business By March

NDTV Profit, 15 JanPrice 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.

KSR Footwear to List on NSE and BSE Tomorrow After Demerger From Khadim India

HDFC Sky, 26 Nov

Khadim India receives ₹31.97 Cr from Punjab govt after HC order

scanx.trade, 26 Aug

Watch Items

Revenue growth is negative (-18.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

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