Business Overview
Kamdhenu limited is steel sector Company. It started its journey in year 1995. In year 2008 it has also ventured into Paints business. The first manufacturing unit was started in Bhiwadi in Rajasthan.
As of this writing it has more than 50 manufacturing unit in India. The Company operates in franchise model as well. Below are major products from the Company
It is one of the largest TMT producers in India.It is first Company to introduce unique double-rib pattern design.
- Kamdhenu TMT bar
- Kamdhenu SS 10000
- Kamdhenu Nxt
- Structural Steel (Under Franchise model)
- Color coated PPGI/PPGL sheets – Roofing sheets
- Pre Engineered Building
- Kamdhenu Paints
You might have seen ads for Kamdhenu TMT bars. It is decently recognized brand. The Pre Engineered buildings and Kamdhenu paints are newer growth areas for the Company.
As of now the focus is on Housing Paints segment. It has not ventured into Industrial paints segment.
Stock Performance
This is long term performance graph of the Stock. As you can clearly see it did not made any money for investors post listing. In fact it destroyed wealth of investors post listing for around one decade.
It has gained positive movement only recently in year 2016. But the entire gain was wiped out in last couple of years. So the Company has not performed well for investors in this long term chart. The dividend yield is good at above 1% but with no appreciable price gain it does not make investors happy.
My Opinion
There are few Steel TMT bars Company in market. What sets apart this Company is entry into Pre Engineered building and Paints sector. These two are growth sector and has potential to do good in coming years if played well.
Pre Engineered buildings are new development in India. These are steel structures built as per requirement of the Customer. This is increasingly becoming popular in developed countries like US and is slowly being adopted in India as well.
Paints sector (Decorative) in which Company has ventured into has selected few players who dominate the organized paints sector with majority of market share.
It is important to see progress of the Company in this two segments. TMT bars segment is competitive one. Interesting point will be how well Company managers to integrate these three different business segments and progress well.
As of now I will wait for these segments to perform before making decision about it. Based on stock price it is trading at lower levels and has pricing comfort for investors.