Khadim India (KHADIM)
Asset PlayScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹98.59 |
| Market Cap | ₹181.19 Cr |
| P/E Ratio | 58.34 |
| ROCE | 9.34% |
| ROE | 1.35% |
| Dividend Yield | 0% |
| Profit Growth | -39.1% |
| Debt/Equity | 1.49 |
| Sales Growth | -18.7% |
| Promoter Holding | 59.85% |
| 52-Week Range | ₹77.47 — ₹295.8 |
| Sector | Consumer Durables |
| Book Value | ₹90.87 |
Strengths
- Price-to-book of 0.72: market cap of ₹221 Cr is below book value of ₹142.69 per share.
- Promoter holding of 59.85% aligns owners with minority shareholders.
- 52-week range shows the stock has already declined sharply from ₹295.80, removing some speculative froth.
Concerns
- ROE of 1.35% and ROCE of 9.34% indicate poor returns on capital.
- Sales down 21.77% and profit down 75.48%; latest quarter net profit is effectively nil.
- Debt-to-equity of 1.54 and Piotroski F-score of 3/9 suggest financial strain.
- No dividend yield, so shareholders receive no income while waiting for recovery.
AI Analysis
Facts first: Khadim India sells at ₹103.35 against book value of ₹142.69, so on paper you get a 28% discount. But a low price-to-book ratio can be a trap when the business earns poor returns. ROE is only 1.35%, ROCE is 9.34%, and the company carries debt-to-equity of 1.54. Sales have fallen 21.77%, profit is down 75.48%, and the latest quarter shows ₹86 Cr of sales with no meaningful net profit. The Piotroski F-score of 3/9 reinforces the picture of a company under financial stress. With no dividend, shareholders are not being paid to wait. The market cap is just ₹221 Cr, and the price has fallen from ₹295.80 to ₹103.35 in the last year, so the market has already marked it down. Promoter holding at 59.85% does show alignment, but at these levels of profitability, minority investors are betting on a revival, not on current earning power. I cannot call this a wonderful business; footwear is a competitive, low-margin industry, and this balance sheet is leveraged. The only reason I would continue to study Khadim is the gap between price and book value. If the company can stabilise sales, produce positive and growing quarterly profits, and pay down debt, book value can be defended. If not, the discount may simply reflect the slow destruction of equity. This is an asset play, but only for patient—and careful—bargain hunters.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer