🧹 KHFM Hospitality: PSU Contracts, High Debtors, and 51x P/E – Service Industry Mein Drama

At a Glance

KHFM provides facility management, catering, guest house ops, gardening, pest control and more for government and PSU clients. It bagged ₹261 Cr in contracts recently (SBI, ONGC, BMC, Pondicherry University), but debtor days are now 112, promoter holding is down to 37%, and stock trades at 51x P/E. Something smells off — and it’s not the pantry.

1. 🎬 Intro: Low Promoter Holding, High Valuation

• ₹177 Cr market cap
• P/E: 51.5
• Book Value: ₹27 → P/B: 3.03x
• EPS: ₹1.59
• Dividend: 0.61% yield, but erratic
• Promoter Holding: Crashed from 71.2% → 37.0% in 3 years 😬

And yet, the company is bagging PSU contracts like Diwali sweets.

2. 🧽 WTF Do They Even Do?

KHFM is the janitor to the nation — literally.

Services:

• 🧹 Housekeeping & Building Maintenance
• 🛏️ Guest House Ops (Govt. bungalows? Maybe!)
• 🌻 Gardening & Landscaping
• 🐜 Pest Control (Yes, even that)
• ☕ Pantry & Catering (recently got ₹50+ Cr deals)
• 💼 Front Office Management
• 🏢 Property Management

Client base: PSU, BFSI, Municipal, University, Defence.

Core moat = long-term multi-crore government contracts.

3. 💰 Financials: Stable Sales, Flat Profits