Khadim India Limited (KHADIM) AI Stock Analysis

• Market Cap: ₹2.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.28K
• Price to Earnings (P/E): 67.2
• Beta (1Y): 1.22
• Revenue Growth: -26.54%
• EPS Growth: -21.93%
• Country: IN
• Employees: 780
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.10
• Shares Outstanding: 18,378,382
• 10 Day Avg. Volume: 1,869
• 30 Day Avg. Volume: 1,279
• PEG Ratio: -1.39
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 2.67
• 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: 53 Neutral
• Price Target: ₹125.00 ▼(-28.33% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

Overall score reflects mixed financial performance (improving margins and cash generation but low net profitability and meaningful leverage) offset by weak technicals (price below all key moving averages with negative MACD) and an expensive earnings multiple (high P/E with no dividend yield provided).

Positive Factors

Omnichannel retail footprint

A large branded store network combined with online channels gives durable distribution scale, multi-channel revenue diversification and stronger brand presence. This supports steady customer access, purchasing scale and resilience to local demand swings over a 2-6 month horizon.

Improving gross and operating margins

Improving gross margins and recovering EBIT/EBITDA margins indicate better cost management and operating leverage. Sustained margin improvement enhances cash generation potential and buffers profitability against revenue volatility, supporting reinvestment and debt reduction over the medium term.

Positive operating and free cash flow

Rising operating cash flow and positive free cash flow provide durable internal funding for capex, store investment and deleveraging. Even with inconsistent growth, current cash generation reduces reliance on external financing and supports strategic initiatives over coming quarters.

Negative Factors

Material revenue decline and volatility

A near-39% reported revenue decline signals structural demand weakness or execution issues. Sustained or recurring revenue volatility undermines operating leverage, complicates margin recovery and makes medium-term planning and investment riskier unless topline stabilizes.

Significant leverage on balance sheet

Material leverage limits financial flexibility, increases interest expense sensitivity and constrains the ability to fund growth organically. Even with slight improvement, high debt elevates downside risk in demand slowdowns and reduces capacity for opportunistic investments.

Low net profitability due to high operating expenses

Persistently low net margins driven by elevated operating costs weaken retained earnings and the firm's ability to self-fund growth or pay down debt. Without sustained revenue recovery or further cost control, margin pressure could persist and limit long-term value creation.

Khadim India Limited Business Overview & Revenue Model

Company Description

Khadim India Limited manufactures, wholesales, and retails footwear primarily under the Khadim's brand. It also provides footwear and leather accessories for men, women, and children under the British Walkers, Lazard, Turk, Adrianna, Bonito, Pro, Softouch, Sharon, Cleo, Waves, Adrianna, and Schooldays brands. As of March 31, 2021, the company operated 757 retail stores, as well as a network of 575 distributors selling to multi brand outlets in 23 states and one Union territory in India. It also exports its products. The company was formerly known as Khadim Chain Stores Limited and changed its name to Khadim India Limited in August 2005. Khadim India Limited was incorporated in 1981 and is based in Kolkata, India.

How the Company Makes Money

Khadim India Limited generates revenue through multiple streams, primarily by selling footwear products through its extensive retail network, which includes both company-owned and franchise stores. The company operates a significant number of outlets across India, enhancing its reach and visibility in the market. Revenue is primarily derived from direct sales to consumers, both in physical stores and through its online platform. Additionally, KHADIM benefits from strategic partnerships with suppliers and manufacturers, allowing for cost-effective production and distribution of its products. The company also occasionally engages in promotional campaigns and collaborations that boost brand visibility and sales. Overall, its revenue model is driven by a combination of retail sales growth, brand expansion, and efficient supply chain management.

Khadim India Limited Financial Statement Overview

Summary

Mixed fundamentals: improving gross margins and recovering EBIT/EBITDA trends, but revenue declined in 2025, net margins remain low due to high operating expenses, and leverage is still substantial despite slight improvement. Cash flow is positive with better operating cash flow, yet free cash flow growth has been inconsistent.

Income Statement

Khadim India Limited shows fluctuating revenue with a decline in 2025 after a rise in 2024. Gross profit margins have improved since 2023, indicating better cost management, though net profit margins remain low due to high operating expenses. EBIT and EBITDA margins show a recovering trend, yet profitability needs to be sustained for stronger performance.

Balance Sheet

The company's debt-to-equity ratio indicates significant leverage, though it has improved slightly over time. Stockholders' equity has grown, enhancing the equity ratio, which is a positive sign of increasing shareholder value. However, the company still carries substantial debt, which could pose risks in volatile market conditions.

Cash Flow

Operating cash flow has increased, reflecting improved core business operations. Free cash flow is positive and growing, but the free cash flow growth rate has been inconsistent. The cash flow generation ability relative to net income shows potential for reinvestment, yet the company needs consistent cash flow growth to support long-term investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.10B	4.18B	6.15B	6.60B	5.91B	6.26B
Gross Profit	2.28B	2.27B	2.59B	1.24B	875.02M	1.52B
EBITDA	744.27M	768.81M	832.72M	922.15M	654.64M	228.82M
Net Income	52.61M	50.60M	62.78M	174.78M	64.38M	-329.44M
Balance Sheet
Total Assets	0.00	7.61B	7.32B	7.35B	6.51B	6.30B
Cash, Cash Equivalents and Short-Term Investments	131.28M	81.26M	55.48M	64.30M	31.13M	12.46M
Total Debt	0.00	2.95B	3.21B	3.10B	2.42B	2.44B
Total Liabilities	-2.51B	5.10B	4.92B	5.10B	4.44B	4.30B
Stockholders Equity	2.51B	2.51B	2.40B	2.25B	2.08B	2.01B
Cash Flow
Free Cash Flow	0.00	551.27M	410.37M	243.61M	223.36M	444.17M
Operating Cash Flow	0.00	670.68M	514.56M	393.77M	306.12M	478.33M
Investing Cash Flow	0.00	-88.78M	-95.30M	198.73M	-138.29M	-20.67M
Financing Cash Flow	0.00	-415.31M	-505.10M	-627.98M	-417.83M	-445.37M

Khadim India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 174.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KHADIM, the sentiment is Negative. The current price of 174.4 is above the 20-day moving average (MA) of 147.83, above the 50-day MA of 160.39, and below the 200-day MA of 225.45, indicating a bearish trend. The MACD of -12.29 indicates Positive momentum. The RSI at 18.68 is Positive, neither overbought nor oversold. The STOCH value of 12.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KHADIM.

Khadim India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹60.38B	18.46	―	1.07%	14.37%	12.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BATAINDIA	57 Neutral	₹98.90B	56.99	―	0.95%	-0.95%	-50.96%
RELAXO	56 Neutral	₹82.45B	51.60	―	0.75%	-8.39%	-3.74%
KHADIM	53 Neutral	₹2.20B	67.17	―	―	-26.54%	-21.93%
LANDMARK	51 Neutral	₹16.80B	72.31	―	0.10%	27.97%	-35.12%

Khadim India Limited Corporate Events

CARE Reaffirms Khadim India’s Bank Facility Ratings, Assigns Stable Outlook

Khadim India Limited has received a revised communication from CARE Ratings on its bank facilities totaling ₹182.95 crore, with the long-term facilities of ₹151.45 crore reaffirmed at CARE BBB with a Stable outlook and the short-term facilities of ₹31.50 crore reaffirmed at CARE A3+. The ratings have been removed from the previous Rating Watch with Developing Implications, suggesting a clearer outlook on the company’s credit profile following a review based on its FY25 audited and H1FY26 unaudited performance, which may provide greater confidence to lenders and stakeholders regarding the company’s financial stability and access to bank funding.