High ROE & high ROCE multibagger iron & steel stock to keep under radar as Board announces 10:1 stock split & positive results
The stock is up by 97 per cent from its 52-week low of Rs 265.80 per share; gave multibagger returns of 340 per cent in 3 years and a whopping 900 per cent in 5 years.
Kamdhenu Ltd, established in 1994, is a prominent player in the Indian manufacturing industry, specializing in the production and distribution of high-quality steel products and paints. The company is renowned for its flagship brand, "KAMDHENU," under which it offers a diverse range of products including TMT bars, structural steel, colour-coated sheets, pre-engineered buildings, and paints. Kamdhenu has solidified its position as India's largest branded TMT bar player in the retail segment, catering to both individual consumers and large-scale construction projects. In Q2FY25, FIIs increased their stake to 9.57 per cent compared to 6.12 per cent in June 2024.
Kamdhenu Ltd. has announced a stock split where each existing equity share with a face value of Rs10 will be divided into 10 new equity shares with a face value of Re 1 each. This move aims to increase the liquidity of the company's shares and make them more accessible to small investors by reducing the cost per share. The number of shares held by each shareholder will remain the same, but the total number of shares outstanding will increase tenfold.
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According to Quarterly Results, the net sales increased by 3 per cent to Rs 190.2 crore and net profit increased by 56 per cent to Rs 15.9 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales decreased by 5 per cent to Rs 374.7 crore and net profit increased by 41 per cent to Rs 31.3 crore in H1FY25 compared to H1FY24. In FY24, the company reported net sales of Rs 721.7 crore and net profit of Rs 50.13 crore.
The company has a market cap of Rs 1,435 crore with an ROE of 27 per cent and an ROCE of 35 per cent. The company's working capital requirements have reduced from 62.6 days to 23.1 days and debtor days have improved from 63.1 to 27.5 days. The stock is up by 97 per cent from its 52-week low of Rs 265.80 per share; gave multibagger returns of 340 per cent in 3 years and a whopping 900 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.