Kama Holdings (532468)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Low P/E of 9.02 with a PEG of 0.20 suggests attractive earnings yield relative to growth.
• Piotroski F-Score of 7/9 indicates solid financial health and earnings quality.
• ROE of 13.08% and ROCE of 11.75% show reasonable capital efficiency.
• Latest quarter sales of ₹3,743 Cr and net profit of ₹434 Cr reflect healthy scale and margins.
• Dividend yield of 1.28% provides modest income while waiting for value recognition.

Concerns

• P/B of 10.02 is very high; paying over ten times book for 13% ROE leaves little margin of safety.
• Sales growth of only 6.18% is far below the 85.40% profit growth, raising sustainability doubts.
• Debt/Equity is not disclosed, leaving leverage and financial risk unclear.
• Holding company structure can carry inherent complexity and potential discount to underlying asset value.

AI Analysis

Dear investor, when I look at Kama Holdings, I see a classic holding company trading at a reasonable earnings multiple. At ₹2,706, the P/E of 9.02 means I'm paying ₹9 for every ₹1 of trailing earnings. That's not demanding. But Graham would remind me to look beneath the surface. The P/B of 10.02 is a red flag: I'm paying ten times book value for a company whose ROE is just 13.08%. That means the market is pricing in significant future value creation, yet sales growth is only 6.18%. The 85.40% profit growth looks spectacular, but I must ask if it is sustainable or a one-time gain. The PEG ratio of 0.20 suggests the market is underpricing growth, but that assumes the growth persists. The Piotroski F-score of 7/9 does give me confidence in the financial health—this isn't a company on the verge of collapse. ROCE at 11.75% is decent but not exceptional. As a holding company, I get a diversified portfolio, but I also get complexity and potential discounts. The latest quarter shows sales of ₹3,743 Cr and net profit of ₹434 Cr, a margin near 11.6%, which is healthy. However, with a dividend yield of only 1.28%, I'm not being paid much to wait. I would want to understand what's driving that profit jump. For a value investor, this is not a clear bargain; it's a steady compounder with some red flags. I'd wait for a margin of safety.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer