KAMDHENU MULTIBAGGER IN THE MAKING

KAMDHENU MULTIBAGGER IN THE MAKING

THIS YEAR WE WITNESSED THE GROWTH OF INFRA,REAL ESTATE,ELECTRICTY SECTOR.

THESE ARE THE SECTOR WHICH CREATED DEMAND FOR STEEL AND ITS ANCILLIARY PRODUCTS.

RECENTLY THE GOVERNMENT OF INDIA HAS ISSUED NATIONAL STEEL POLICY FOR 5 YEARS AND ITS GOING TO GIVE HUGE BOOST TO STEEL COMPANIES.

GOVERNMENT WILL FOCUS ON INFRA AND SMART CITIES FOR NEXT 2 YEARS AND MAKE HUGE EXPENDITURE OVER IT.

NOW LETS TALK ABOUT A STEEL RELATED STOCK WHICH IS KAMDHENU ISPAT CMP@115 .

KAMDHENU TMT IS THE ONE OF THE BIGGEST LARGEST TMT SELLING BRAND IN COUNTRY.EXCEPT THIS

KAMDHENU PAINTS ALSO GETTING MARKET BRAND IN PAINT INDUSTRY ACHIEVING 200 CR SALES LAST YEAR.

KAMDHENU FRANCHISEE BUSINESS MODEL MUCH SUSTAINABLE NOW AFTER DEVELOPING SUCH A BIG BRAND.

KAMDHENU HAS MORE THAN 8000 DEALERS IN MARKET .

IN 2015 KAMDHENU WON THE “WORLD’S GREATEST BRANS 2015 ASIA& GCC” AND AISA MOST PROMISING BRAND.
KAMDHENU LIMITED MANUFACTURES TMT BARS WHICH ARE THERMOS MECHANICAL TREATED USING THE WORLD’S LEADING TECHNOLOGY FOR HIGH YIELD

COMPANY TURNOVER INCLUDES 78% OF TMT STEEL AND 22% OF PAINTS.

KAMDHENU PRODUCTS INCLUDE

  1. KAMDHENU TMT BAR
  2. KAMDHENU SS 10000
  3. KAMDHENU WIREBOND
  4. KAMDHENU NXT
  5. KAMDHENU PLYWOOD
  6. COLOUR COATED SHEETS

 

KAMDHENU LIMITED VALUATION

SALES IN 2016 : 841 CR
SALES IN 2017 : 780 CR
SALES GROWTH : (-7%)
LAST YEAR DUE TO DEMONETIZATION AND SLOWER GROWTH IN INFRASTRUCTURE, HOUSING SEGMENT AFFECTED SALES HOWEVER COMPANY MAINTAINED ITS MARGIN.

EBIDTA IN 2015: 30.14
EBIDTA IN 2016 : 31.86Cr
EBIDTA IN 2017: 33.68Cr

EPS IN 2015 : 3.29
EPS IN 2016 : 3.34
EPS IN 2017 : 3.89

CURRENT MARKET CAP OF KAMDHENU IS ONLY 270 Cr, CONSIDERING ITS BRAND IT DOESN’T JUSTIFY IT.

IF WE SEE LAST 3 YEARS
ROCE AND ROA WHICH IS VERY IMPRESSIVE.
COMPANY IS EACH YEAR PAYING TAX OVER 30%.
IN LAST 5 YEARS CASH FLOW FROM OPERATION ALWAYS POSITIVE.
PRESENT CREDIT RATING FOR SHORT TERM FROM ICRA A2 AND LONG TERM ICRA STABLE.

CONSIDERING ITS CONSISTENT PERFORMANCE AND GROWTH OF THE INDUSTRY KAMDHENU CAN BE MULTIBAGGER IN NEXT ONE OR TWO YEARS.

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

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