Sai Silks (Kalamandir) Ltd.
NSE: KALAMANDIR | Q3 FY2025 Results
Value Pick Multibagger Stock for long term investment
Investment Highlights
Market Cap
₹2,767 Cr
Current Price
₹180
52-Week Range
₹253 / ₹144
P/E Ratio
27.5x
Book Value
₹70.0
Dividend Yield
0.55%
ROCE
15.9%
ROE
13.8%
Q3 FY2025 Financial Performance
| Financial Metric | Q3 FY2025 | Q3 FY2024 | % Change (YoY) |
|---|---|---|---|
| Revenue from Operations | ₹448.56 Cr | ₹382.45 Cr | +17.3% |
| EBITDA | ₹78.91 Cr | ₹58.20 Cr | +35.6% |
| EBITDA Margin | 17.6% | 15.2% | +240 bps |
| PAT | ₹46.02 Cr | ₹31.98 Cr | +43.9% |
| PAT Margin | 10.3% | 8.4% | +190 bps |
9M FY2025 Performance
- Revenue: ₹1,063.17 Cr (+4.86% YoY)
- EBITDA: ₹153.20 Cr (-2.93% YoY)
- PAT: ₹71.88 Cr (-0.35% YoY)
Growth Strategy & Store Expansion
Current Stores
66 stores across 18 cities
Total Retail Area
6.85 lakh sq. ft
Revenue per Store
₹22.9 Cr (FY24)
FY26 Target
8-12 new outlets
Omnichannel Strategy
- Coverage: 25 states & 6 Union Territories
- Features: Live commerce, social media shopping, influencer-led promotions
- E-commerce Target: 10-12% of total revenue in next two years
- Average Online Order Value: ₹4,664
Product Portfolio
| Brand | Category | Target Segment | Price Range |
|---|---|---|---|
| Kalamandir | Mid-range ethnic wear | Middle-income | ₹1,000 – ₹1,00,000 |
| Mandir | Ultra-premium designer sarees | Affluent customers | ₹6,000 – ₹3,50,000 |
| Varamahalakshmi | Premium wedding & handloom sarees | Upper middle class | ₹4,000 – ₹2,50,000 |
| KLM Fashion Mall | Ethnic & value fashion | Budget-conscious buyers | ₹200 – ₹75,000 |
Competitive Analysis
| Competitor | Presence | Business Model | Competitive Advantage |
|---|---|---|---|
| Sai Silks (Kalamandir) | South India | Offline + E-commerce | Strong saree segment dominance |
| Nalli Silks | National | Offline-focused | Legacy premium saree brand |
| Reliance Trends | Pan-India | Offline + Online | Aggressive discounting |
| FabIndia | National | Offline + Online | Focus on handloom and organic |
| Manyavar | National | Offline + Online | Premium men’s ethnic wear |
Key Risks & Challenges
- Consumer Spending Volatility: Potential slowdown in wedding and festive demand
- Raw Material Price Inflation: Fluctuations in silk, handloom fabrics, and cotton prices
- Competition: Digital-first brands expanding in ethnic wear segment
- Regulatory & Taxation: Potential GST rate changes impact
- Debt & Expansion Risk: Debt reduced from ₹257.75 Cr to ₹159.10 Cr
Valuation & Price Target
| Metric | FY25E | FY26E |
|---|---|---|
| Expected EPS | ₹7.2 | ₹8.3 |
| Target P/E Range | 30-32x | 30-32x |
| Fair Value Range | ₹215-230 | ₹250-265 |
Valuation Metrics
Current P/E
27.5x
In line with sector averageROCE
15.9%
Strong capital efficiencyROE
13.8%
Healthy returnsDebt Reduction
₹98.65 Cr
Improved financial flexibilityIndustry Growth Potential
The Indian wedding & festive wear market is expected to grow at 27.3% CAGR
Investment Thesis & Recommendation
Bullish Scenario
Stock could reach ₹250+ in the next 12-18 months, driven by:
- Strong festive demand
- Successful store expansion
- Margin improvement
- E-commerce growth
Bearish Scenario
Downside support at ₹160-170, potential risks:
- Weakening consumer spending
- Intense e-commerce competition
- Raw material cost pressures
- Execution challenges in expansion
Final Investment Call
Moderate Buy – Strong long-term growth story with valuation re-rating potential
Company Strengths
- Market Leadership: 69.5% of total revenue from saree segment
- Regional Dominance: Strong presence in South India, which contributes 50% of total saree market
- Operational Excellence: Templatized store roll-out model ensures higher efficiency
- Brand Portfolio: Well-positioned brands across price segments
- Financial Health: Improving margins and reducing debt levels
Conclusion
Sai Silks (Kalamandir) is well-positioned to capitalize on India’s fast-growing organized ethnic wear market. The company demonstrates:
- Strong revenue growth trajectory
- Improving operational margins
- Successful omnichannel expansion
- Clear growth strategy with focus on premium segments
- Robust brand portfolio across price points
While competition and macroeconomic risks need to be monitored, the company’s strong fundamentals and growth strategy make it an attractive investment proposition for long-term investors.
Leave a Reply
You must be logged in to post a comment.