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Kalyani Commercial Overview

1. Business Overview

Kalyani Commercials Ltd. operates in the Automobiles - Dealers & Distributors sector in India. Its core business involves the retailing of vehicles, primarily through franchise agreements with various automobile manufacturers (Original Equipment Manufacturers - OEMs). The company's business model revolves around selling new vehicles, facilitating vehicle financing, offering after-sales services (maintenance and repairs), and selling spare parts and accessories. It generates revenue primarily from sales margins on new and potentially used vehicles, service charges, and margins on parts and accessories.

2. Key Segments / Revenue Mix

While specific breakdowns are not publicly available, a typical automobile dealership's revenue mix generally includes:

New Vehicle Sales: The largest component, driven by sales volumes and margins negotiated with OEMs.

Used Vehicle Sales: May contribute if the company has a pre-owned vehicle division.

After-Sales Service: Revenue from vehicle maintenance, repairs, and labor charges.

Spare Parts & Accessories Sales: Margins on the sale of genuine parts and accessories.

Financial Services & Insurance Commission: Income derived from facilitating vehicle financing and insurance for customers.

3. Industry & Positioning

The Indian automobile dealership industry is characterized by a mix of regional and national players, operating under dealership agreements with various OEMs. It is a highly competitive, localized business where performance often depends on brand strength (of the OEM), location, customer service quality, and operational efficiency. Without specific details on the brands Kalyani Commercials represents or its geographical presence, its positioning can be generally described as a regional player serving specific markets for the brands it partners with. Dealerships primarily compete on factors like customer experience, service quality, and pricing within OEM guidelines.

4. Competitive Advantage (Moat)

Automobile dealerships generally possess limited durable competitive advantages due to the standardized nature of products (OEM vehicles) and intense competition. Potential limited advantages for Kalyani Commercials might include:

Strong OEM Relationships: Long-standing and favorable agreements with key automobile manufacturers.

Established Regional Network: A well-located network of showrooms and service centers in its operating geographies.

Customer Loyalty: A reputation for excellent service leading to repeat business, though customer switching costs are generally low.

Operational Efficiency: Ability to manage inventory, sales, and service operations more efficiently than competitors.

However, these are often hard to sustain as true moats in a fragmented market.

5. Growth Drivers

Indian Economic Growth: Rising disposable incomes and urbanization leading to increased demand for personal mobility.

Increasing Vehicle Penetration: India's relatively low vehicle penetration offers significant long-term growth potential.

New Product Launches: Introduction of new and updated models by OEM partners can stimulate demand.

Expansion of Dealership Network: Organic or inorganic expansion into new territories or adding new OEM franchises.

Growth in Aftermarket: Increasing vehicle parc drives demand for maintenance, repairs, and spare parts.

Shift to Premium/EVs: Adaptation to market trends like premiumization or the increasing adoption of electric vehicles, provided the company represents relevant brands.

6. Risks

Cyclicality of Auto Industry: Automobile sales are highly sensitive to economic cycles, interest rates, and consumer sentiment.

Reliance on OEM Partners: Heavy dependence on the performance and product portfolio of the specific manufacturers it represents. Changes in OEM strategy, product failures, or discontinuation of models can significantly impact the dealer.

Intense Competition: Competition from other dealers (of the same or different brands), online sales channels, and used car markets.

Inventory Risk: High working capital requirements and the risk of inventory obsolescence or depreciation, especially during market slowdowns.

Regulatory Changes: Evolving emission norms, safety regulations, and tax policies (e.g., GST rates) can impact vehicle pricing and demand.

Technological Disruption: The shift towards electric vehicles, shared mobility, and direct-to-consumer sales models by some OEMs could disrupt traditional dealership models.

Financing Availability: Availability and cost of vehicle financing can influence customer purchase decisions.

7. Management & Ownership

Detailed information about the promoters and specific management quality is not publicly available without deeper financial filings or company reports. Like many older "Commercials Ltd." companies in India, Kalyani Commercials is likely promoter-led or family-controlled. The ownership structure would typically involve a significant stake held by the promoter group, with the remaining shares held by public shareholders and institutional investors (if any). Without further data, commentary on management quality would be speculative.

8. Outlook

Kalyani Commercials operates in a foundational sector of the Indian economy, poised to benefit from long-term trends of urbanization and rising affluence. The bull case rests on the robust growth of the Indian automobile market, the company's ability to forge strong relationships with successful OEMs, and efficient management of its dealership operations and customer service. Expanding its network or diversifying OEM partnerships could also fuel growth.

Conversely, the bear case highlights the significant inherent risks in the dealership model: the cyclical nature of auto sales, intense competition, and high dependency on OEM performance. Furthermore, the evolving landscape of mobility (EVs, direct sales models, shared mobility) presents structural challenges to traditional dealerships. The company's ability to adapt to these shifts, manage working capital efficiently, and maintain profitability in a competitive environment will be key determinants of its future performance.

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Kalyani Commercial Key Financials

Market Cap ₹14 Cr.

Stock P/E 5.9

P/B 0.7

Current Price ₹138.1

Book Value ₹ 199.4

Face Value 10

52W High ₹138.1

Dividend Yield 0%

52W Low ₹ 119.3

Kalyani Commercial Share Price

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Volume
Price

Kalyani Commercial Quarterly Price

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Kalyani Commercial Peer Comparison

Kalyani Commercial Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 76 77 62 58 90 137 103 95 118 181
Other Income 0 1 0 0 0 0 1 0 0 0
Total Income 76 78 63 58 90 137 104 95 119 182
Total Expenditure 75 76 61 57 88 135 102 93 116 179
Operating Profit 2 2 1 1 2 2 2 2 3 3
Interest 1 1 1 0 1 2 1 1 2 2
Depreciation 0 0 0 0 0 0 0 0 0 0
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 1 1 0 1 1 0 1 1 0 1
Provision for Tax 0 0 0 0 0 0 0 0 0 0
Profit After Tax 0 1 0 1 1 0 1 1 0 1
Adjustments 0 -0 0 0 0 0 -0 0 0 -0
Profit After Adjustments 0 1 0 1 1 0 1 1 0 1
Adjusted Earnings Per Share 4.9 5.7 3.2 6.2 7.4 2.6 7.3 6.3 2.4 6.3

Kalyani Commercial Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 319 536 454 495 401 228 135 230 332 278 387 497
Other Income 0 0 0 0 0 1 0 1 0 1 2 1
Total Income 319 536 455 496 402 229 135 231 332 279 389 500
Total Expenditure 314 530 447 487 393 222 132 225 324 272 380 490
Operating Profit 5 6 7 9 9 6 3 5 8 7 9 10
Interest 4 5 6 7 8 4 1 2 3 3 5 6
Depreciation 1 1 1 1 1 1 1 0 0 0 0 0
Exceptional Income / Expenses 0 0 0 0 -0 0 0 1 0 0 0 0
Profit Before Tax 1 1 1 1 1 1 1 3 4 3 3 3
Provision for Tax 0 0 0 0 0 0 0 1 1 1 1 0
Profit After Tax 0 1 1 1 1 1 1 2 3 2 2 3
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 0 1 1 1 1 1 1 2 3 2 2 3
Adjusted Earnings Per Share 4.8 6.2 5.5 5.2 5.5 8.8 6.3 24.9 31.5 23.6 23.3 22.3

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 39% 19% 11% 2%
Operating Profit CAGR 29% 22% 8% 6%
PAT CAGR 0% 0% 15% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 16% NA% NA% NA%
ROE Average 12% 17% 16% 12%
ROCE Average 15% 15% 13% 12%

Kalyani Commercial Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 5 6 7 7 8 9 9 12 15 18 20
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 2 1 3 4 5 7 6 1 0 0 0
Other Non-Current Liabilities -0 0 -0 -0 -0 0 -0 -0 0 0 0
Total Current Liabilities 44 63 58 77 67 18 47 57 49 30 56
Total Liabilities 51 69 68 88 79 34 62 69 65 48 77
Fixed Assets 6 7 6 6 6 6 4 3 3 2 2
Other Non-Current Assets 1 1 4 5 5 5 5 3 3 3 3
Total Current Assets 44 62 58 77 69 23 54 64 59 42 72
Total Assets 51 69 68 88 79 34 62 69 65 48 77

Kalyani Commercial Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 1 4 2 0 4 3 1 9 1 1 1
Cash Flow from Operating Activities 5 -2 -1 3 27 118 -2 -1 -18 25 -25
Cash Flow from Investing Activities -1 -1 -3 -2 4 5 0 4 -1 0 0
Cash Flow from Financing Activities -1 0 2 2 -32 -125 10 -12 19 -24 24
Net Cash Inflow / Outflow 3 -2 -1 2 -1 -1 9 -9 -0 1 -1
Closing Cash & Cash Equivalent 4 2 0 3 3 2 9 1 1 1 0

Kalyani Commercial Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 4.83 6.21 5.47 5.19 5.49 8.84 6.32 24.88 31.53 23.63 23.33
CEPS(Rs) 12.93 13.79 12.91 12.11 12.36 18.26 12.63 29.08 35.67 28.22 26.15
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 54.33 60.53 66 71.2 76.68 87.88 92.31 121.67 153.33 175.37 199.43
Core EBITDA Margin(%) 1.5 1.15 1.56 1.7 2.19 2.36 1.89 1.93 2.31 2.14 1.81
EBIT Margin(%) 1.33 1.06 1.45 1.61 2.06 2.41 1.68 2.45 2.26 2.44 2.13
Pre Tax Margin(%) 0.21 0.17 0.17 0.17 0.18 0.5 0.73 1.43 1.33 1.18 0.87
PAT Margin (%) 0.15 0.12 0.12 0.1 0.14 0.39 0.47 1.08 0.95 0.85 0.6
Cash Profit Margin (%) 0.41 0.26 0.28 0.24 0.31 0.8 0.94 1.27 1.07 1.02 0.68
ROA(%) 1.01 1.03 0.8 0.67 0.65 1.57 1.32 3.77 4.69 4.2 3.74
ROE(%) 9.25 10.81 8.64 7.57 7.42 10.74 7.01 23.25 22.93 14.38 12.45
ROCE(%) 9.72 11.75 13.7 12.36 10.77 11.13 6.41 14.83 15.88 13.44 14.61
Receivable days 20.86 18.25 36 33.25 31.08 34.94 36.62 37.66 38.22 35.92 22.74
Inventory Days 22.2 15.28 10.57 12.86 30.39 35.15 43.47 40.26 25.59 27.21 24.28
Payable days 3.29 6.47 12.67 6.54 4.61 8.77 31.1 43.23 19.78 3.89 2.54
PER(x) 0 0 0 0 0 0 0 4.8 0 0 0
Price/Book(x) 0 0 0 0 0 0 0 0.98 0 0 0
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0.12 0.08 0.09 0.15 0.15 0.09 0.18 0.15 0.14 0.08 0.14
EV/Core EBITDA(x) 7.33 6.92 5.28 8.71 6.72 3.24 8.23 6.22 5.67 3.24 6.17
Net Sales Growth(%) 20.05 67.94 -15.22 9.02 -18.98 -43.25 -40.7 70.06 44.55 -16.27 39.34
EBIT Growth(%) 7.82 33.99 15.93 21.5 3.53 -33.79 -58.68 148.81 32.97 -9.7 21.74
PAT Growth(%) -9.35 28.51 -11.92 -4.96 5.67 61.05 -28.55 293.87 26.73 -25.04 -1.3
EPS Growth(%) -9.35 28.51 -11.92 -4.96 5.67 61.05 -28.55 293.87 26.73 -25.04 -1.3
Debt/Equity(x) 7.34 7.48 5.78 10.89 8.02 2.34 3.48 1.85 2.89 1.34 2.6
Current Ratio(x) 0.99 0.99 1 1.01 1.03 1.3 1.13 1.12 1.2 1.42 1.27
Quick Ratio(x) 0.46 0.64 0.91 0.62 0.49 0.89 0.6 0.67 0.77 0.73 0.72
Interest Cover(x) 1.19 1.19 1.13 1.11 1.1 1.26 1.76 2.4 2.43 1.94 1.69
Total Debt/Mcap(x) 0 0 0 0 0 0 0 1.89 0 0 0

Kalyani Commercial Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 53.14 53.14 53.14 53.14 53.14 53.14 53.14 53.14 53.14 53.14
FII 0 0 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 46.86 46.86 46.86 46.86 46.86 46.86 46.86 46.86 46.86 46.86
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Kalyani Commercial News

Kalyani Commercial Pros & Cons

Pros

  • Stock is trading at 0.7 times its book value
  • Debtor days have improved from 3.89 to 2.54days.

Cons

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