KDDL Limited.

Introduction

Introduction of the Company

KDDL Ltd. Is a company that makes parts for watches and also sells luxury watches. The main office of KDDL Ltd. It is in Parwanoo, which's in Himachal Pradesh. KDDL Ltd. Has become very good at making watch parts, for companies and also at selling watches directly to people who want to buy them.

Industry Overview

India’s luxury goods and high-end watch market is doing well. More people are buying luxury goods and high-end watches. The market for these products in India is increasing. KDDL benefits from both industrial demand for precision components and consumer demand for luxury watches.

Purpose of the Analysis

To evaluate KDDL’s financial performance, strengths, risks, and investment outlook.

Company Overview

Background & History

Founded in 1981, by Yashovardhan Saboo, KDDL started making watch parts. Over time they got into luxury retail too.

Business Model

KDDL works in two areas:

1. Precision and Watch Components: They make watch dials, hands and engineering parts.
2. Luxury Watch Retail: Their subsidiary Ethos Limited runs a luxury watches store in India.

They get money from these two things: selling parts to watch brands and selling high-end watches in their stores.

Product Offerings

Watch dials, hands, indexes, appliques, precision-stamped components, progressive tools, and luxury watch retail.

Market Position

KDDL is a name when it comes to making parts for watches in India. They also sell these parts to countries around the world.

The company does well because more and more people want to buy watches and KDDL sends their watch components to many places, outside of India.

Promoter Introduction

Name of Promoter: Yashovardhan Saboo

Professional Background: 

Mr. Yashovardhan Saboo studied Economics at St. Stephen’s College, Delhi University. Then he did an MBA at IIM Ahmedabad.

He started Kamla Dials and Devices Limited now known as KDDL Limited in 1983. He has been the Managing Director of Kamla Dials and Devices Limited since then. In 1993 Mr. Yashovardhan Saboo set up SBL Coatings, a paint business. In 2003 he founded ETHOS Limited. In 2006 he started EIGEN Engineering, a Precision Stamping unit in Bangalore.

Role in Company Growth: 

Promoters contributed to:

a. Expansion into precision engineering manufacturing.

b. Development of export markets.

c. Launch of luxury watch retail chain through Ethos Limited.

Promoters hold around 50% ownership, indicating strong management control. 

Financial Statement Analysis

Income Statement (₹ Cr.)

The company’s revenue has been increasing steadily. The profits rose quickly from FY2023 to FY2024.However, the margins dropped slightly in FY2025. The company’s earnings per share remain very strong. This indicates that the company is creating value for its shareholders.

The strong earnings per share show that the company is creating value for its shareholders and that's why the earnings per share of the company stays strong.

Balance Sheet

1. Assets have a base in manufacturing and a good amount of luxury retail products in stock.
2. Liabilities: The company does have some debt. The interest costs are something which can be handled.
3. Equity: Company has stable promoter holding and has dividend payout nearly to 6.5%.

Cash Flow Statement

Positive operating cash flows, supported by both manufacturing and retail segments.

Key Financial Ratios

1. Profitability: Net margin ~8.6%.
2. Liquidity: Adequate, with healthy current ratio.
3. Leverage: Moderate debt-to-equity, manageable.
4. Efficiency: Strong operating margins compared to peers.

Year-on-Year Performance

• FY2023 → FY2024 revenue growth: ~24%
• FY2024 → FY2025 revenue growth: ~18%
• Profit growth is strong over 5 years but slightly volatile recently. 

Key Insights & Interpretation

Strengths:

• Strong presence in watch component manufacturing.
• Global export business.
• Ownership of Ethos, a major luxury watch retailer in India.
• Consistent long-term revenue growth.

Weakness

• Dependence on the watch industry cycle.
• Profit margins fluctuate due to raw material costs and demand changes.

Risk Factors: 

• Global luxury demand fluctuations
• Competition from international watch component suppliers
• Currency fluctuations affecting export revenues

Future Outlook: 

Demand for luxury watches in India is rising with increasing disposable income. KDDL’s integration of manufacturing and retail through Ethos provides a strong competitive advantage for long-term growth.

Conclusion

KDDL Ltd. Started as a company that made parts for watches. Over time it has become a company that does a lot of things like making precise engineering parts and selling luxury watches. If you look at how money the company is making you can see that it is getting more and more every year. The company is also making profit, which is good.

The company is in a financial position because it is selling more and more every year. It also does not owe much money, which is a good thing. The company sells its products to countries around the world. However the company’s profit can go up and down depending on what's happening in the industry and how much people want to buy luxury things.

So KDDL Ltd. Is a company that is growing. It is involved in the global luxury and precision engineering markets. This makes it an interesting company to study and see how it will do in the long term. KDDL Ltd. Is an example of a company that is always trying to grow and get better which is why it is worth looking at closely.

Data Sources

https://www.kddl.com/

https://www.nseindia.com/get-quote/equity/KDDL/KDDL-Limited

https://www.screener.in/company/KDDL/consolidated/