NBFC Stock Skyrockets 10% After Receiving Approval to Sell Stake in SRF

Synopsis: Shares of Kama Holdings Limited surged 10% after its board approved selling up to a 3% stake in SRF Limited. The move signals potential value unlocking and possible narrowing of the holding company discount, alongside improved Q3 FY26 earnings growth.

The shares of this company, which is a core investment company, while the principal activities of its subsidiaries are the manufacturing, purchasing, and sale of technical textiles, chemicals, packaging films, and other polymers, had its shares in momentum today after the company’s board took a decision regarding the selling of a stake in one of its companies.

With a market cap of Rs 8,600 crore, the shares of Kama Holdings Ltd jumped 10 per cent in today’s trading session and reached a high of Rs 2785 . When compared to its previous day’s closing price of Rs 2539.95, the shares are trading at a PE of 9.23 compared to its industry PE of 18.7. 

Why did the shares jump 10%?

The 10% increase in KAMA Holdings Ltd stocks seems to be triggered by the Board’s approval for the disposal of not exceeding a 3% equity stake in SRF Ltd, as reported in. Given that SRF accounts for almost 99.5% of the consolidated turnover and 87.5% of the net worth, a partial realization of value in a holding company that normally trades at a discount to its intrinsic value is a positive indication of unlocking value.

Moreover, as of December 2025, the promoters possess 50.26% equity in KAMA Holdings, while KAMA Holdings retains 50.21% in SRF. The plan to dispose of up to 3% equity in SRF may reduce their holding below the 50% level, which would have a bearing on their status as a subsidiary and could change the dynamics of consolidation.

The market may also be taking into account the possibility of a narrowing of the holding company discount. As the transactions are to be done in the open market and do not include entities of the promoter group, there is transparency involved. The factors of stake monetisation, potential re-rating catalysts, and clarity on the promoter shareholding structure may have contributed to the sharp increase in the stock price.

Financials

The revenue from operations for the company stood at Rs 3,743 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 3,526 crores, up by about 6 per cent YoY. Similarly, the net profit stood at Rs 434 crore in Q3 FY26, up compared to the Rs 272 crore profit in Q3 FY25.

Kama Holdings Limited is a diversified holding firm that is family-owned by Arun Bharat Ram’s family, with business interests in education, real estate, and financial investments through wholly owned subsidiaries. The education business, Shri Educare Limited, concentrates on establishing and managing schools in India and internationally, based on the Shri Ram Schools model, which shows a planned and brand-centric approach to the education sector. 

The real estate business, KAMA Realty (Delhi) Limited, owns commercial properties in prime locations such as Gurgaon and Mumbai, which shows steady asset-backed income streams. On the other hand, SRF Transnational Holdings Limited is a registered NBFC that conducts investment business, which shows a financial portfolio management approach. In sum, the profile of the firm shows a diversified and targeted holding approach that combines asset management, education services, and financial investments.

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