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KPRMILL - Fundamental Analysis: Financial Health & Valuation

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Rating: 4

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental 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.

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