Sai Silks (Kalamandir) Ltd. (KALAMANDIR) AI Stock Analysis

• Market Cap: ₹17.18B
• Dividend Yield: 1.31%
• Average Volume (3M): 319.79K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.50
• Revenue Growth: 23.15%
• EPS Growth: 47.46%
• Country: IN
• Employees: 5,424
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 2.72
• Shares Outstanding: 153,366,120
• 10 Day Avg. Volume: 64,383
• 30 Day Avg. Volume: 319,787
• PEG Ratio: -1.03
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 36.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹124.00 ▼(-18.58% Downside)

The score is primarily supported by solid underlying financial performance (improving profitability, strong equity base, and positive free cash flow) and reasonable valuation (P/E ~14 and ~1.76% dividend yield). These positives are partly offset by very weak technical conditions, with the stock trading below all key moving averages and showing strongly bearish momentum indicators.

Positive Factors

High gross & EBIT margins

Sustained high gross and EBIT margins indicate strong sourcing, pricing power, and cost control in its ethnic-wear retail model. Such margin durability supports reinvestment in stores, product assortment and marketing, cushioning earnings through seasonal swings over the next 2-6 months.

Conservative capital structure

A high equity ratio and low leverage provide financial flexibility to fund expansion, manage inventory cycles and absorb demand shocks. This conservative structure reduces refinancing risk and enables steady execution of store-level strategies over the medium term.

Positive cash flow recovery

Return to positive free cash flow and strong operating cash to net income shows improved cash generation and operational discipline. Positive FCF enhances capacity to fund working capital and capex demands of retail stores, supporting sustainable operations in coming quarters.

Negative Factors

Debt volatility risk

While leverage is currently modest, historical swings in total debt introduce uncertainty around refinancing timing and interest burden. Episodic debt increases can constrain strategic spending and elevate liquidity risk during weaker seasonal periods, affecting medium-term stability.

Moderate FCF conversion

Only converting ~63% of net income into free cash flow implies earnings are not fully translating into discretionary cash. That limits ability to sustainably fund dividends, expand cautiously, or absorb inventory buildup during festival seasons without external financing.

Physical retail & seasonal concentration

Heavy reliance on physical stores and festival-driven sales creates structural revenue volatility and higher fixed costs. Lack of disclosed e-commerce/channel detail suggests limited omnichannel reach, which may hinder market share gains versus competitors investing in digital channels over the next several months.

Sai Silks (Kalamandir) Ltd. Business Overview & Revenue Model

Company Description

Sai Silks (Kalamandir) Limited engages in the retail sale of apparel in India. The company offers ultra-premium and premium sarees for weddings, parties, and occasional and daily wear; ethnic fashion for middle income customers; and value fashion products comprising fusion wear and western wear for women, men, and children, as well as lehengas, men's ethnic wear, and children's ethnic wear. It operates in its stores in various formats under the Kalamandir, Kancheepuram VaraMahalakshmi Silks, Brand Mandir, and KLM Fashion Mall brands. The company was founded in 2005 and is based in Hyderabad, India.

How the Company Makes Money

Kalamandir generates revenue primarily through the sale of its ethnic clothing, with a focus on silk sarees and traditional outfits. The company operates on a retail model, with income derived from direct sales in their physical stores as well as through online platforms. Key revenue streams include seasonal collections, bridal wear, and festive collections which attract significant customer interest. Additionally, partnerships with local artisans and craftsmen enhance product offerings and contribute to unique sales propositions. Promotions, loyalty programs, and strategic marketing campaigns further boost customer engagement and drive sales, contributing to the overall profitability of the business.

Sai Silks (Kalamandir) Ltd. Financial Statement Overview

Summary

Strong income statement trends with improved profitability (net margin ~5.8% in 2025) and solid gross margin (~41.8%). Balance sheet is healthy with a high equity ratio (~69%) and low debt-to-equity (~0.36), but debt fluctuations add some risk. Cash flow has turned positive with free cash flow of 542.6m in 2025, though prior volatility and only moderate free-cash-flow conversion (FCF/NI ~0.63) temper the score.

Income Statement

Sai Silks (Kalamandir) Ltd. has demonstrated strong growth in revenue and improved profitability over the years. The gross profit margin stands at approximately 41.8% for 2025, indicating strong cost control. The net profit margin improved significantly to 5.8% in 2025 from the previous year, reflecting better operational efficiency. Revenue growth has been consistent, with a notable increase of around 6.4% from 2024 to 2025. The company also shows a strong EBIT margin of 28.2% in 2025, indicating solid core operational profitability.

Balance Sheet

The balance sheet of Sai Silks (Kalamandir) Ltd. reflects a stable financial position with an equity ratio of 69% in 2025, suggesting a healthy capital structure. However, the debt-to-equity ratio is at 0.36, which is relatively low, indicating conservative leverage. The return on equity (ROE) has been improving, reaching 7.5% in 2025, showcasing effective use of shareholder funds. However, fluctuations in total debt levels over the years pose potential risks that need monitoring.

Cash Flow

The cash flow position shows improvement with a positive free cash flow of 542.6 million in 2025, recovering from negative values in previous years. The operating cash flow to net income ratio stands at 1.25, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.63 suggests room for improvement in translating net income into free cash flow. The overall positive trend in cash flows enhances financial flexibility, although past volatility warrants caution.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.74B	14.62B	13.74B	13.51B	11.36B	6.79B
Gross Profit	6.01B	6.11B	5.59B	5.29B	2.77B	1.31B
EBITDA	2.73B	1.86B	2.43B	2.18B	1.46B	514.74M
Net Income	1.13B	853.90M	1.01B	975.90M	544.10M	59.37M
Balance Sheet
Total Assets	0.00	16.41B	16.42B	12.20B	10.57B	8.43B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.95B	447.80M	497.00M	486.37M	257.99M
Total Debt	0.00	4.05B	4.64B	5.26B	3.93B	2.79B
Total Liabilities	-11.32B	5.09B	5.79B	8.23B	7.41B	5.82B
Stockholders Equity	11.32B	11.32B	10.63B	3.97B	3.16B	2.62B
Cash Flow
Free Cash Flow	0.00	542.60M	-626.60M	-188.80M	822.55M	-140.09M
Operating Cash Flow	0.00	1.07B	-214.60M	412.30M	736.72M	-84.35M
Investing Cash Flow	0.00	1.18B	-3.32B	-601.40M	-435.40M	-181.91M
Financing Cash Flow	0.00	-1.84B	3.93B	149.00M	-271.82M	194.26M

Sai Silks (Kalamandir) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KALAMANDIR, the sentiment is Negative. The current price of 152.3 is above the 20-day moving average (MA) of 122.39, above the 50-day MA of 143.20, and below the 200-day MA of 153.01, indicating a bearish trend. The MACD of -9.91 indicates Positive momentum. The RSI at 31.72 is Neutral, neither overbought nor oversold. The STOCH value of 16.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KALAMANDIR.

Sai Silks (Kalamandir) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KALAMANDIR	68 Neutral	₹17.18B	13.34	―	1.31%	23.15%	47.46%
V2RETAIL	62 Neutral	₹72.83B	69.42	―	―	65.91%	139.39%
MANYAVAR	62 Neutral	₹117.90B	30.59	―	1.37%	5.77%	-4.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DEVYANI	54 Neutral	₹143.32B	-424.42	―	―	20.91%	-202.35%
OLAELEC	43 Neutral	₹142.60B	-5.89	―	―	―	―
ALOKINDS	40 Underperform	₹75.02B	-11.98	―	―	-20.02%	25.52%

Sai Silks (Kalamandir) Ltd. Corporate Events

Sai Silks (Kalamandir) Files Quarterly IPO Proceeds Utilisation Report Monitored by CARE Ratings

Sai Silks (Kalamandir) Limited has disclosed that CARE Ratings Limited, acting as the appointed monitoring agency, has submitted its report on the utilisation of the company’s initial public offering proceeds of Rs 600 crore for the quarter ended 31 December 2025. The filing, made to both BSE and NSE in compliance with SEBI’s listing and capital-raising regulations, confirms that the quarterly monitoring of IPO funds usage is ongoing, signalling continued regulatory compliance and transparency for investors regarding how the capital raised is being deployed.

Sai Silks Expands with 75th Store in Mysore

Sai Silks (Kalamandir) Ltd. has announced the opening of its 75th store in Mysore, Karnataka, under the Kanchipuram Varamahalakshmi Silks format. This expansion reflects the company’s ongoing growth strategy and strengthens its presence in the Indian retail market, potentially enhancing its market share and influence in the traditional silk saree segment.

Sai Silks Releases Conference Call Recording on Financial Results

Sai Silks (Kalamandir) Ltd. announced that the audio recording of their recent conference call discussing the un-audited financial results for the quarter and half-year ending September 30, 2025, is now available on their website. This move reflects the company’s commitment to transparency and keeping investors informed, potentially reinforcing stakeholder trust and enhancing its industry positioning.

Sai Silks (Kalamandir) Ltd. Releases Un-Audited Financial Results

Sai Silks (Kalamandir) Ltd. announced the publication of its un-audited financial results for the quarter and half-year ending September 30, 2025. The results were published in Business Standard and Nava Telangana, indicating the company’s commitment to transparency and regulatory compliance. This announcement may impact stakeholders by providing insights into the company’s financial health and operational performance.