⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KPRMILL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | KPRMILL | Market Cap | 28,615 Cr. | Current Price | 837 ₹ | High / Low | 1,395 ₹ |
| Stock P/E | 48.6 | Book Value | 119 ₹ | Dividend Yield | 0.60 % | ROCE | 21.5 % |
| ROE | 17.6 % | Face Value | 1.00 ₹ | DMA 50 | 895 ₹ | DMA 200 | 970 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.20 % | PAT Qtr | 142 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 43.9 | MACD | -21.1 | Volume | 3,79,537 | Avg Vol 1Wk | 19,58,761 |
| Low price | 796 ₹ | High price | 1,395 ₹ | PEG Ratio | -12.2 | Debt to equity | 0.05 |
| 52w Index | 6.91 % | Qtr Profit Var | 3.65 % | EPS | 17.2 ₹ | Industry PE | 20.5 |
📊 Core Financials
- Revenue & Profitability: PAT grew sequentially (₹132 Cr → ₹142 Cr), showing steady improvement. EPS at ₹17.2 supports earnings strength.
- Margins: ROCE at 21.5% and ROE at 17.6% reflect solid efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.05 indicates an almost debt-free balance sheet.
- Cash Flow: Strong operating efficiency ensures healthy cash generation.
💹 Valuation Indicators
- P/E: 48.6, significantly above industry average (20.5), suggesting premium valuation.
- P/B: 7.03 (₹837 / ₹119), reflecting high market expectations.
- PEG Ratio: -12.2, distorted due to earnings growth slowdown, making valuation less attractive.
- Intrinsic Value: Current price ₹837 is above fair value; better entry closer to ₹796–820.
🏢 Business Model & Competitive Advantage
- Strong presence in textiles and garments with diversified product lines.
- Efficient capital utilization reflected in high ROCE.
- Near debt-free balance sheet enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹796–820 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking steady compounding, though valuation premium warrants caution.
✅ Positive
- Sequential PAT growth (+3.65%).
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Strong ROCE (21.5%) and ROE (17.6%) highlight efficient capital use.
⚠️ Limitation
- High P/E (48.6) compared to industry average (20.5).
- High P/B ratio reflects premium valuation.
- PEG ratio (-12.2) indicates distorted valuation due to earnings slowdown.
- Stock trading below DMA 50 (₹895) and DMA 200 (₹970), showing weak momentum.
📉 Company Negative News
- Technical indicators (RSI 43.9, MACD -21.1) suggest bearish momentum.
- DII holdings decreased by 0.20%, showing reduced domestic institutional confidence.
📈 Company Positive News
- Sequential PAT growth from ₹132 Cr to ₹142 Cr.
- FII holdings increased slightly (+0.04%), reflecting foreign investor interest.
- Near debt-free status enhances long-term stability.
🏭 Industry
- Industry P/E at 20.5, much lower than company’s P/E, indicating premium valuation.
- Textile sector remains cyclical but supported by export demand and domestic consumption.
🔎 Conclusion
- KPR Mill demonstrates strong fundamentals with efficient capital use and low debt.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹796–820 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term momentum weakness and valuation premium warrant caution.