Kamdhenu is a steel products company generating recurring royalty income through a franchisee-based TMT bar distribution network. Key segments include franchisee sales (TMT bars, structural pipes), own manufacturing (1.25 lakh metric ton plant), and royalty income (INR435/ton in FY26). Growth will accelerate via 10-15% annual royalty rate hikes, 10% volume expansion from existing franchisees, and South India market share gains. Treasury funds will prioritize steel business reinvestment and shareholder rewards, while government infrastructure spending supports demand. The asset-light model with 26.8% ROCE and 78% franchisee capacity utilization positions the business for 20%+ EBITDA growth through 2028, though franchisee performance consistency remains a critical execution risk.
companyname: Kamdhenu Limited ticker: KAMDHENU sector: Iron and Steel Kamdhenu Limited was incorporated in 1994 and has since built a reputation as India's largest branded TMT bar player in the retail segment. The company manufactures and markets steel products including TMT bars, structural steel, and color-coated profile sheets. It operates through an asset-light franchisee model with over 80 franchise units that produce under the Kamdhenu brand, plus one own manufacturing plant in Bhiwadi. ...
Read the full report →margin expansion, geographic expansion, market share gain
FY27 royalty income growth guided at 10-15% annually driven by 10% volume growth and royalty rate increases
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