Business Overview
Kamla Dials & Devices Limited known as KDDL now started its journey in year 1983 by manufacturing watch dials. It is the only company to manufacture watch dial hands in India. It also exports the watch dials and hands to Swiss watch companies.
For export of these products it uses brand name TARATEC.It also started manufacturing packaging products for watches & other accessories after successfully establishing itself in Watch hands and watch dials.
It has established separate entity called Eigen Engineering. Eigen Engineering manufactures high precision stamping parts, press tools and moulds.
It has also started selling its own brand of Luxury watches through subsidiary Ethos limited. They have wide range of products for all segments starting from 2 thousand to 2 lakh INR. It also has online portal for sell of these watches.As of this writing it has 40 retail stores under Ethos.
Stock Performance
The stock is listed in year 2016. The Company listed itself on exchanges pretty late considering it came into existence in year 1983. It did not perform on exchanges for nearly year or so and then had a good run almost doubling money of investors.
There is correction off late but it has given decent returns to investors post that as well. The dividend yield of the stock is pretty good and is just below 1% which can be considered good yield.
My Opinion
The Company has monopoly position is manufacturing Watch dials and Watch hands. So if there is any growth in consumption of watches it will be direct beneficiary.
Also it exports the products as well. So growth in international market as well as national market will help the stock expand its revenue as well as profit.
Along with that it has expanded its footprint with Eigen Engineering. It creates products which will be used in Electrical & Electronics, Auto Ancillaries, Aerospace, Consumer Durables, Industrial applications, Instrumentation.
This is an effort to diversify the dependency on Watches and proper future growth using the expertise in Watch component manufacturing. It has also started its own online watch store and retail store.
The Company has monopoly in one area of operation and is exploring new geographies to expand further. It will be good to keep this Company on radars.