2,500 per cent Multibagger Returns in 5 Years: This Watch Component Company Incorporates New Subsidiary Artisan Watch Products with Rs 5 Crore Capital
The company boasts a market capitalisation of Rs 4,047 crores, with a notable 1-year return of 29.01 per cent and a 3-year return of 255 per cent.
KDDL Ltd has recently incorporated a new subsidiary named Artisan Watch Products Private Limited, marking a strategic expansion in its business operations. The subsidiary, established on 19th March 2025, has an authorised share capital of Rs 5 crore, with an initial subscribed and paid-up capital of Rs 2 crore. KDDL will hold an 80 per cent stake in the subsidiary, while Mr. Yashovardhan Saboo, a promoter of KDDL, has committed to subscribing to 20 per cent equity. Although the subsidiary is yet to commence commercial operations, it signifies KDDL's commitment to broadening its footprint in the watch products industry.
This move aligns with KDDL's broader strategy to enhance its market presence and product offerings in the luxury watch and precision engineering sectors. The company, known for its significant growth in the luxury watch retail segment, continues to diversify its portfolio, leveraging its expertise and market position to explore new opportunities.
As of 21 March 2025, KDDL's stock is trading at Rs 3,226. The stock's 52-week high is Rs 3586.4, and the 52-week low is Rs 2129.2, indicating that it is trading near its 52-week low. This multibagger stock has delivered 2,514 per cent returns over the past 5 years.
KDDL Limited, established in 1981, is a prominent manufacturer of watch components, including dials and hands, under the brand Eigen. The company operates India's largest luxury watch retail chain, Ethos, offering over 60 premium brands. This segment has seen substantial growth, driven by digital initiatives and portfolio expansion.
DSIJ's 'Large Rhino' service recommends blue chip stocks of Large Cap companies that have leadership positions in their category. If this interests you, do download the service details here.
DDL also manufactures precision engineering goods and has a strong presence in both India and Switzerland. The company has been expanding its retail footprint, now operating 63 stores across 24 cities in India. Recent strategic moves include the acquisition of the Swiss watch brand Favre-Leuba and the establishment of new manufacturing facilities. KDDL is focused on expanding its product range and increasing its market share in precision engineering, aiming for a revenue growth of 20 per cent-25 per cent CAGR over the next few years.
KDDL Ltd boasts a market capitalisation of Rs 4,047 crores, with a notable 1-year return of 29.01 per cent and a 3-year return of 255 per cent.
As of December 2024, the shareholding pattern is as follows: Promoters hold 50.44 per cent, FIIs hold 9.33 per cent, DIIs hold 1.71 per cent, the government holds 0.11 per cent, and the public holds 38.42 per cent. There is a notable decline in FII holdings from 11.69 per cent in June 2024 to 9.33 per cent in December 2024, while public shareholding has increased from 36.34 per cent to 38.42 per cent over the same period
The company has ROCE of 18.6 per cent and ROE of 17.2 per cent. The company has been maintaining a healthy dividend payout of 31.10 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.