This small-cap paint firm's shares outpace Asian Paints & Berger Paints in 5 months; now eyes 4x revenue growth

A small-cap company, Kamdhenu Ventures, the paints business of Kamdhenu Group, on Saturday announced its strategy to achieve four-fold revenue growth by the end of financial year 2027-28 (FY28). The company is looking to enhance its market share in the South and West of the country by expanding its product portfolio with the launch of new and innovative products.

Shares of the company have already been buzzing on Dalal Street due to their superlative performance since listing in January 2023. Kamdhenu Ventures (Kamdhenu Paints) has advanced 41 per cent to Rs 252.45 apiece as on June 16, from the close of Rs 178 on January 24, when the shares got listed on the bourses after the demerger from Kamdhenu Ltd. Meanwhile, the market capitalisation of the company jumped to Rs 793.59 crore from Rs 480.80 crore.

On the other hand, shares of paint majors Asian Paints, Berger Paints, and Kansai Nerolac Paints gained 18 per cent, 20 per cent, and 10 per cent, respectively, during the same period. The benchmark BSE Sensex advanced nearly 4 per cent since January 24.

Kamdhenu Paints further said that it will tap the deep markets in the North and East by increasing its dealer and distribution network. The key objective is to increase market share from unorganised players and tap into tier-2 and -3 cities.

With the expansion plan, the company is looking for a fourfold growth in revenue to Rs 1,000 crore by the end of FY28. Kamdhenu Paints reported revenue of Rs 251 crore in FY23.

Commenting on the business expansion plan, Satish Kumar Agarwal, Chairman and Managing Director of Kamdhenu Group, said, “After a strategic review of the current business operations commensurate with the revenue growth that we have achieved till date, we have set an ambitious target of achieving a 4 times revenue growth by the end of FY 2028. We have a strong presence in the North and East part of the country and we will strengthen it further.”

“We have accessed the potential for deeper penetration in the South and West regions and a concerted marketing initiative across the country is already under execution. Our aim is to increase the current 4,000-plus dealer network across the country to 8,000-plus and achieve revenue of Rs 1,000 crore by the end of FY28. Our strong relationship with our dealer network across the country will help us achieve our target,” Agarwal said.

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