KPR Mill

Dalal Street Investment Journal - - COVER STORY -

KPR Mill, es­tab­lished in 1984, op­er­ates as an in­te­grated ap­parel man­u­fac­tur­ing com­pany. The com­pany op­er­ates through three seg­ments, namely, tex­tile, su­gar and oth­ers. It is en­gaged in the man­u­fac­ture of cot­ton yarn, knit­ted fab­ric and ready­made gar­ments. The com­pany also pro­duces wind power and su­gar. On the fi­nan­cial front, KPR Mill posted 6.30 per cent in­crease in its rev­enue to ₹555.63 crore in Q1FY18 from ₹522.69 crore in Q1FY17. The com­pany’s PBDT stood at ₹92.84 crore in the first quar­ter of FY18, which is al­most same as in the cor­re­spond­ing pe­riod last year. The com­pany’s net profit rose 1.85 per cent to

₹46.17 crore dur­ing the same pe­riod.

On an an­nual ba­sis, the com­pany’s rev­enue rose 13.14 per cent to ₹2219.14 crore in FY17 com­pared to the pre­vi­ous fis­cal. The com­pany’s PBDT in­creased 38.30 per cent to ₹427.74 crore in FY17 from ₹345.20 crore in FY16. The com­pany’s net profit in­creased tremen­dously from ₹155.54 crore in FY16 to ₹238.42 crore in FY17, reg­is­ter­ing 53.85 per cent in­crease. On the valu­a­tion front, the com­pany is trad­ing at a PE mul­ti­ple of 18.10 whereas its peers Arvind Ltd and SRF Ltd are trad­ing at PE mul­ti­ples of 32.94 and 25.68, re­spec­tively. Its re­turn on cap­i­tal em­ployed stood at 20.71 per cent, while its re­turn on eq­uity stood at 23.98 per cent. The com­pany has shown good and con­sis­tent profit growth of 54.59 per cent over the last five years. We rec­om­mend our reader-in­vestors to BUY the stock.

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