Check Before You Invest : Kama Holdings Ltd

Snapshot

Q.1 Which industry/sub-sector does Kama Holdings Ltd belong to?

Kama Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Kama Holdings Ltd a good quality company?

Kama Holdings Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Kama Holdings Ltd undervalued or overvalued?

Kama Holdings Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Kama Holdings Ltd a good buy now?

Kama Holdings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Kama Holdings Ltd?

Kama Holdings Ltd Operating Income growth is -65.62% for FY-2025, which is below its 5-year CAGR of 21.09%, indicating slower growth.

Q.2 Return on Assets of Kama Holdings Ltd?

Kama Holdings Ltd Return on Asset is 11.9%, which is below its 5-year historical median of 15.8%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	96.23	97.11
PPOP%	-66.04	51.43
RoA%	11.9	15.8

Q.3 Return on Equity (ROE) of Kama Holdings Ltd?

Kama Holdings Ltd Return on Equity is 12.4% for FY-2025, which is below its 5-year historical median of 18.2%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Kama Holdings Ltd?

Kama Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -66.04% for FY-2025, which is below its 5-year median(51.43%), indicating decreasing margins.

Q.5 Net Profit Margin of Kama Holdings Ltd?

Kama Holdings Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 96.23% for FY-2025, which is below its 5-year median( 97.11%), indicating decreasing margins.

Q.6 Total Asset growth of Kama Holdings Ltd?

Kama Holdings Ltd Total Asset growth is 6.55% for FY-2025, which is below its 5-year CAGR of 9.08%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kama Holdings Ltd?

Promoters hold 75.00% of the Kama Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Kama Holdings Ltd vs Industry Peers?

Kama Holdings Ltd AUM CAGR is 9.08%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Kama Holdings Ltd vs industry peers

Kama Holdings Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	96.23	9.95
PPOP%	-66.04	-13.4
RoA%	11.9	0.8

Q.3 Operating efficiency of Kama Holdings Ltd vs industry peers?

Kama Holdings Ltd ROCE (18) is above the industry median of (1.9); while the current ROE (18.2) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	96.23	9.95
PPOP%	-66.04	-13.4
RoA%	11.9	0.8
ROCE%	12.4	1.9
ROE%	12.4	1.2

Valuation & price assessment

Q.1 Stock return of Kama Holdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 24.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	24.2%	12.3%	-0.4%	-3.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	71.64	69.40	33.72
Price to Book	9.42	11.19	0.94
Price to Sales	69.34	68.15	12.44
EV to EBITDA	71.72	69.04	9.97

Q.4 Valuation ratios of Kama Holdings Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 9.42% is lower than its historical median of 11.19%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Kama Holdings Ltd return on invested capital (ROIC) is 12.37% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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