Kamdhenu Limited, founded in 1994, has established itself as a leader in India’s steel manufacturing industry, particularly in branded TMT bars. The company was started with a vision to provide top-quality TMT bars at competitive prices and is currently led by Mr. Satish Kumar Agarwal, who has guided Kamdhenu to become the largest producer and retailer of branded TMT bars in the country. As of FY24, the company achieved a brand sales turnover of approximately ₹21,201 crore, with its flagship product “Kamdhenu TMT Bar” being the best-selling TMT brand in India. Kamdhenu operates through an extensive network of over 8,500 distributors and dealers across the nation, solidifying its market presence.
In 2008, Kamdhenu expanded into the decorative paints industry, diversifying its offerings in the construction materials market. This move complemented its steel business, aligning with the growing demand for quality construction materials in India.
Recently, Kamdhenu announced its first-ever stock split, approved by its board in a 1:10 ratio, which will convert each ₹10 share into ten shares with a face value of ₹1 each. This initiative aims to increase the liquidity of Kamdhenu’s shares and make them more accessible to smaller investors. The company is awaiting shareholder approval for the stock split, after which a record date will be determined.
Financially, Kamdhenu recorded strong growth in Q2 FY25, with a 56.09% year-over-year increase in net profit, reaching ₹15.89 crore compared to ₹10.18 crore in Q2 FY24. Revenue also rose by 2.78% to ₹190.18 crore, primarily due to heightened construction activities and increased volume sales through Kamdhenu’s franchise network. The franchise model has shown notable success, with royalty revenue increasing by 11% year-over-year to ₹33 crore, providing a capital-efficient growth stream.
Looking ahead, Kamdhenu is optimistic about the expanding infrastructure projects in India, spurred by government initiatives like “Housing for All.” These projects are expected to boost demand for branded, high-quality TMT bars. Kamdhenu has a 20% market share in India’s organized retail TMT segment and is strategically planning to double its sales over the next 4-5 years through a mix of franchisee sales and in-house production.
On the technical front, Kamdhenu’s stock is currently bearish, with strong support at ₹524. If the stock closes below ₹477, it could potentially drop to a target of ₹435, according to independent analyst A. R. Ramachandran. Investors are advised to consult financial experts to assess their individual investment decisions.
Overall, Kamdhenu continues to leverage its strong brand reputation and expanding distribution network to solidify its market position and meet the rising demand for quality construction materials in India.
Disclaimer: The information provided is for informational purposes only and does not constitute investment advice. Please consult with a certified financial advisor before making any investment decisions.
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