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

• Market Cap: ₹15.41B
• Dividend Yield: 1.31%
• Average Volume (3M): 319.79K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.44
• Revenue Growth: 23.15%
• EPS Growth: 47.46%
• Country: IN
• Employees: 5,424
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 2.59
• 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: ₹107.00 ▼(-29.74% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

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 and EBIT margins

Sustained high gross margin (~41.8%) and a strong EBIT margin (28.2%) in 2025 indicate durable unit economics. This supports pricing power, covers fixed retail costs across store network, and preserves operating profitability through seasonal swings, aiding long-term reinvestment.

Conservative capital structure

A high equity ratio (~69%) and relatively low debt-to-equity (~0.36) show a conservative balance sheet and improving ROE (7.5%). This financial strength increases resilience to downturns, supports capital allocation for expansion or modernization, and lowers refinancing vulnerability.

Improving cash generation

Free cash flow turned positive at 542.6m in 2025 with operating cash flow to net income of 1.25, reflecting improved cash conversion. Reliable cash generation enhances flexibility to fund inventory for festival seasons, capex, dividends, or debt reduction over the medium term.

Negative Factors

Weak FCF conversion & volatility

A free-cash-flow-to-net-income ratio of 0.63 and prior volatility mean earnings do not consistently convert to available cash. This limits the predictability of funding for growth, dividends, or inventory buildup and raises sensitivity to working-capital swings in retail cycles.

Fluctuating debt levels

While leverage is moderate, documented fluctuations in total debt introduce refinancing and interest-rate risks. Variability in debt can compress margins or constrain investment if funding conditions worsen, reducing strategic flexibility during slower periods.

Brick-and-mortar & seasonal exposure

Revenue is concentrated in owned physical stores and heavily influenced by wedding/festival seasonality. This structural exposure risks uneven cash flows, inventory mismatches, and competitive pressure from e-commerce, making long-term growth dependent on store productivity and digital adaptation.

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

The company primarily makes money by retailing ethnic apparel and related merchandise through its owned brick-and-mortar store network. Revenue is generated from the sale of products such as sarees and other traditional/occasion-wear items, with earnings driven by (a) store-level sales volumes, (b) product mix (including premium and value segments), and (c) gross margin earned on merchandise sold (the spread between procurement/production cost and retail selling price). Additional contributors typically include seasonal and wedding-festival demand cycles that increase footfall and average bill values. Specific details on breakdown by brand, channel (e.g., e-commerce), store formats, private-label vs third-party sourcing, partnerships, or other operating income are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.71B	14.62B	13.74B	13.51B	11.36B	6.79B
Gross Profit	6.31B	6.11B	5.59B	5.29B	2.77B	1.31B
EBITDA	2.87B	1.86B	2.43B	2.18B	1.46B	514.74M
Net Income	1.30B	853.90M	1.01B	975.90M	544.10M	59.37M
Balance Sheet
Total Assets	18.02B	16.41B	16.42B	12.20B	10.57B	8.43B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.95B	447.80M	497.00M	486.37M	257.99M
Total Debt	3.01B	4.05B	4.64B	5.26B	3.93B	2.79B
Total Liabilities	6.15B	5.09B	5.79B	8.23B	7.41B	5.82B
Stockholders Equity	11.88B	11.32B	10.63B	3.97B	3.16B	2.62B
Cash Flow
Free Cash Flow	1.58B	542.60M	-626.60M	-188.80M	822.55M	-140.09M
Operating Cash Flow	1.80B	1.07B	-214.60M	412.30M	736.72M	-84.35M
Investing Cash Flow	-349.80M	1.18B	-3.32B	-601.40M	-435.40M	-181.91M
Financing Cash Flow	-1.92B	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 105.52, above the 50-day MA of 112.76, and above the 200-day MA of 151.11, indicating a bearish trend. The MACD of -4.85 indicates Negative momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 47.46 is Neutral, 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	₹15.41B	14.42	―	1.31%	23.15%	47.46%
DEVYANI	63 Neutral	₹128.23B	-438.93	―	―	20.91%	-202.35%
V2RETAIL	62 Neutral	₹69.73B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MANYAVAR	61 Neutral	₹86.23B	26.22	―	1.37%	5.77%	-4.37%
OLAELEC	43 Neutral	₹108.59B	-7.78	―	―	―	―
ALOKINDS	40 Underperform	₹63.80B	-9.11	―	―	-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.