Buy Kamdhenu Ispat; target of Rs 50: Firstcall Research

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Firstcall Research's report on Kamdhenu Ispat 

“Kamdhenu Ispat Limited incorporated in 1994, manufactures and sells steel products in India. The company operates in three segments: Steel, Power, and Paints. The company offers reinforcement steel bars; structural steels, such as channels, angles, beams, and flats; and binding wires under the Kamdhenu brand name. It also provides plywood, block boards, flush doors, and molded designer doors, as well as PVC products. In addition, the company manufactures emulsions, enamels, distempers, textured and designer finishes, primers, and ancillary products under the Colour Dreamz brand name. The company offers its products through a network of dealers and distributors. Kamdhenu Ispat uses the latest CRM Belgium technology to manufacture its string of products- CID bars, TMT bars, TMT-Gal bars and Stainless steel in a flattering time of 18 seconds against 52 seconds of others. The manufacturing plants are fully automated for hot rolling and fine twisting techniques and use proper quenching processes for TMT technology.”

“The company’s net profit jumps to Rs. 22.47 million against Rs. 16.34 million in the corresponding quarter ending of previous year, an increase of 37.52%. Revenue for the quarter fell by 1.57% to Rs. 2405.16 million from Rs. 2443.47 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 0.96 a share during the quarter as against Rs. 0.70 over previous year period. Profit before interest, depreciation and tax is Rs. 81.35 million as against Rs. 68.00 million in the corresponding period of the previous year, grew by 19.63%.”

“At the current market price of Rs. 43.05, the stock P/E ratio is at 10.75 x FY15E and 9.49 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 4.00 and Rs. 4.53 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 30% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 5.76 x for FY15E and 5.31 x for FY16E. Price to Book Value of the stock is expected to be at 0.97 x and 0.88 x for FY15E and FY16E respectively. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 50.00 for Medium to Long term investment”, says Firstcall Research report.

Read More