KPRMILL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | KPRMILL | Market Cap | 28,130 Cr. | Current Price | 823 ₹ | High / Low | 1,395 ₹ |
| Stock P/E | 47.8 | Book Value | 119 ₹ | Dividend Yield | 0.61 % | ROCE | 21.5 % |
| ROE | 17.6 % | Face Value | 1.00 ₹ | DMA 50 | 890 ₹ | DMA 200 | 967 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.20 % | PAT Qtr | 142 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 41.5 | MACD | -21.3 | Volume | 2,00,498 | Avg Vol 1Wk | 3,19,924 |
| Low price | 796 ₹ | High price | 1,395 ₹ | PEG Ratio | -12.0 | Debt to equity | 0.05 |
| 52w Index | 4.51 % | Qtr Profit Var | 3.65 % | EPS | 17.2 ₹ | Industry PE | 20.2 |
📊 Financials: KPR Mill shows solid fundamentals with ROCE at 21.5% and ROE at 17.6%, reflecting efficient capital use. Debt-to-equity of 0.05 indicates negligible leverage. Quarterly PAT improved from ₹132 Cr. to ₹142 Cr. (+3.65%), showing steady earnings growth. Cash flows remain stable, supporting long-term sustainability.
💹 Valuation: Current P/E of 47.8 is significantly higher than industry average (20.2), suggesting premium valuation. P/B ratio is ~6.9, reflecting expensive pricing relative to book value. PEG ratio of -12.0 indicates valuation concerns due to slower growth expectations. Intrinsic value analysis suggests caution, though current price (₹823 vs. 52W high ₹1,395) offers potential entry opportunities.
🏢 Business Model: KPR Mill operates in textiles and garments with integrated manufacturing capabilities. Its competitive advantage lies in scale, efficiency, and diversified product portfolio, enabling resilience in a cyclical industry.
📈 Entry Zone: Attractive entry between ₹800–₹850, close to support levels (RSI 41.5, MACD negative). Current price (₹823) offers margin-of-safety accumulation opportunity for long-term investors.
🔒 Holding Guidance: Recommended for long-term holding due to strong fundamentals, low debt, and industry resilience. Monitor valuation multiples and momentum indicators for confirmation of sustained recovery.
Positive
- Strong ROCE (21.5%) and ROE (17.6%) highlight efficient capital use.
- Negligible debt-to-equity ratio (0.05) ensures financial stability.
- Quarterly PAT growth (+3.65%) reflects steady earnings momentum.
- Dividend yield of 0.61% adds shareholder value.
Limitation
- High P/E (47.8) compared to industry average (20.2) suggests premium pricing.
- P/B ratio (~6.9) reflects expensive valuation relative to book value.
- Negative PEG ratio (-12.0) indicates valuation concerns.
- Weak momentum (MACD -21.3, RSI 41.5) suggests near-term pressure.
Company Negative News
- Foreign institutional investors reduced holdings (-0.04%).
- Stock trading below DMA 50 (₹890) and DMA 200 (₹967), showing technical weakness.
Company Positive News
- Domestic institutional investors increased holdings (+0.20%).
- Quarterly PAT improved sequentially (₹132 Cr. → ₹142 Cr.).
Industry
- Industry P/E (20.2) is much lower than KPR Mill’s P/E (47.8), indicating sector peers trade at cheaper valuations.
- Textile and garment industry remains cyclical but benefits from export demand and integrated manufacturing efficiencies.
Conclusion
⚖️ KPR Mill presents a fundamentally strong case with efficient capital metrics, negligible debt, and steady earnings growth. However, premium valuation and weak technical momentum are risks. Current levels (₹800–₹850) provide an attractive entry zone for long-term investors, with gradual accumulation recommended under a margin-of-safety approach.
Would you like me to extend this into a peer benchmarking overlay comparing KPR Mill with other textile and garment sector leaders (like Page Industries, Arvind, and Vardhman Textiles) to highlight relative valuation and compounding strength?