KPRMILL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a full-spectrum evaluation of KPR Mill Ltd. (KPRMILL) — a vertically integrated textile player with a diversification strategy that’s helping it punch above its weight 🧵📦

💼 Core Financial Strength

ROCE: 19.8% and ROE: 17.0% — solid profitability metrics that reflect efficient capital deployment and operational strength.

PAT Qtr: ₹205 Cr. vs ₹202 Cr. — marginal decline (-4.2%) but overall earnings remain stable.

EPS: ₹23.8 — commendable earnings considering its diversification into ethanol and garments.

Debt-to-Equity: 0.09 — conservative leverage profile that supports sustainability.

📊 Valuation Snapshot

Metric Value Commentary

P/E Ratio 49.3 ⚠️ High vs. industry average (27.8); reflects premium pricing

P/B Ratio ~7.9 Valuation above book; market confident in long-term story

PEG Ratio -64.9 ❌ Negative implies questionable growth assumptions

🔍 Verdict: Valuation is stretched — investors are pricing in aggressive growth expectations that may be difficult to justify based on near-term earnings trajectory.

🧠 Business Model & Competitive Advantage

Fully integrated operations across spinning, knitting, dyeing, garments — boosts margin control and scalability.

Diversified into ethanol production (from sugar byproducts) and renewables — enhances future earnings potential.

Strong export exposure and domestic retail footprint gives it resiliency across cycles.

Institutional sentiment rising: FII Holding ↑ 0.30%, DII Holding ↑ 2.51% — clear accumulation underway.

📉 Technical Outlook & Entry Guidance

Current Price: ₹1,151

Hugging DMA-50 ₹1,149 and above DMA-200 ₹1,029 — neutral-to-positive setup.

RSI: 45.0 — nearing oversold; watch for bounce.

MACD: 12.6 — signals upward momentum returning.

🎯 Suggested Entry Zone: ₹1,110–₹1,140 🧱 Support: ₹1,075 🔼 Resistance: ₹1,180–₹1,210

⏳ Long-Term Investment View

KPR Mill’s blend of textile core, ethanol growth, and low debt makes it a strong compounder candidate.

Premium valuation demands flawless execution — particularly in export growth and ethanol monetization.

Suitable for 5+ year horizon with a moderate risk appetite and belief in India’s manufacturing/renewables theme.

If you'd like, I can chart how KPR stacks against textile peers like Page Industries, or even ethanol-focused plays like Balrampur Chini. There might be tactical opportunities worth spotting 👓📘.

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