Kamdhenu Ltd: 29 Years, 8,500 Dealers & A Royalty Income That’s Flexing Harder Than Steel

1. At a Glance

Kamdhenu Ltd (KL) — India’s largest TMT brand in retail — trades at ₹29.4 with a market cap of ₹829 Cr, sporting a fresh P/E of just ~9.67 based on the latest EPS annualisation. The company’s sales have crawled at –4% CAGR over the last 5 years, but profit CAGR has been a sizzling 19% thanks to higher margins and record-breaking royalty income from its franchise model. Debt is nearly extinct, and ROCE is strutting around at 29%.

2. Introduction

If you think steel is boring, you haven’t met Kamdhenu. Founded in 1994, this is the company that turned TMT bars into a franchise empire. Instead of building 100 plants themselves, they slapped their brand on 80+ franchise units, pocket royalty income, and keep capital light.

The business has faced sales hiccups, but profits keep surprising — largely because they collect money from franchisees like an OTT platform collects subscriptions. And just like Netflix, the content (steel bars) isn’t changing much, but the margins are juicy.

3. Business Model (WTF Do They Even Do?)

• Core Products: TMT bars, structural steel, colour-coated profile sheets.
• Distribution Muscle: 8,500+ dealers, 250+ distributors nationwide.
• Franchise Model: 80+ partner plants manufacture under Kamdhenu’s brand → Kamdhenu