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.