FIIs' favourite micro caps

KDDL: Precisely the right time KDDL has four operating divisions - luxury watches retail, manufacturing of watch components, precision stamping and tool division, and ornamental-packaging business. The company exports watch components primarily to the Swiss watch market. Its subsidiary Ethos Ltd manages the largest retail chain of luxury Swiss watches in the Indian organised sector and boasts a portfolio comprising 65 Swiss and other international watch brands. The company has developed relationships with leading domestic and international watch manufacturers. But it has historically sported a very small profit margin (five-year average PAT margin is 1.8 per cent) and has a poor five-year average ROE of only 7.17 per cent. As a result of the China + 1 strategy of major global companies, KDDL is witnessing a higher volume of enquiries for its precision-engineering products. Moreover, it is focusing on high