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KPRMILL - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.4

Last Updated Time : 04 May 26, 11:25 am

Fundamental Rating: 4.4

Stock Code KPRMILL Market Cap 32,014 Cr. Current Price 937 ₹ High / Low 1,395 ₹
Stock P/E 54.4 Book Value 119 ₹ Dividend Yield 0.53 % ROCE 21.5 %
ROE 17.6 % Face Value 1.00 ₹ DMA 50 893 ₹ DMA 200 949 ₹
Chg in FII Hold 0.15 % Chg in DII Hold 0.29 % PAT Qtr 142 Cr. PAT Prev Qtr 132 Cr.
RSI 64.5 MACD 20.0 Volume 2,47,861 Avg Vol 1Wk 2,36,032
Low price 796 ₹ High price 1,395 ₹ PEG Ratio -13.6 Debt to equity 0.05
52w Index 23.4 % Qtr Profit Var 3.65 % EPS 17.2 ₹ Industry PE 20.2

Entry Zone: 920 ₹ – 940 ₹ (near 50 DMA support)

Exit Guidance: 980 ₹ – 1,020 ₹ (resistance cluster)

Holding View: Strong candidate for long-term holding with valuation caution

Positive

  • Solid ROCE (21.5%) and ROE (17.6%) indicate efficient capital utilization
  • Low debt-to-equity ratio (0.05) ensures strong balance sheet stability
  • Quarterly PAT growth (132 Cr → 142 Cr) reflects operational resilience
  • EPS of 17.2 ₹ supports profitability and valuation strength
  • Healthy institutional sentiment with both FII (+0.15%) and DII (+0.29%) additions

Limitation

  • High P/E of 54.4 compared to industry PE of 20.2 — valuation stretched
  • Negative PEG ratio (-13.6) indicates growth mismatch with valuation
  • Price below 200 DMA (949 ₹) suggests overhead resistance

Company Negative News

  • Valuation premium relative to industry peers may limit upside
  • 52-week index performance (23.4%) moderate compared to sector leaders

Company Positive News

  • Consistent quarterly profit growth supports investor confidence
  • Strong technical momentum (RSI 64.5, MACD 20.0) indicates bullish trend
  • Institutional accumulation signals long-term support

Industry

  • Industry PE at 20.2, significantly lower than KPRMILL’s 54.4 — sector valuations more moderate
  • Sector momentum steady with mixed valuation signals

Conclusion

KPRMILL demonstrates strong fundamentals with efficient capital returns, low leverage, and consistent profit growth. However, stretched valuations relative to industry peers and resistance near 200 DMA warrant caution. Entry near 920–940 ₹ offers a favorable setup, with exits around 980–1,020 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring is essential.

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