KPRMILL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | KPRMILL | Market Cap | 32,010 Cr. | Current Price | 938 ₹ | High / Low | 1,257 ₹ |
| Stock P/E | 52.8 | Book Value | 126 ₹ | Dividend Yield | 0.53 % | ROCE | 18.6 % |
| ROE | 14.9 % | Face Value | 1.00 ₹ | DMA 50 | 914 ₹ | DMA 200 | 948 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 0.29 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 142 Cr. |
| RSI | 54.4 | MACD | 11.4 | Volume | 94,989 | Avg Vol 1Wk | 2,11,584 |
| Low price | 796 ₹ | High price | 1,257 ₹ | PEG Ratio | 66.0 | Debt to equity | 0.09 |
| 52w Index | 30.8 % | Qtr Profit Var | 11.6 % | EPS | 17.7 ₹ | Industry PE | 22.4 |
📊 Financials: KPR Mill demonstrates solid fundamentals with ROCE at 18.6% and ROE at 14.9%, reflecting efficient capital use. Debt-to-equity ratio of 0.09 indicates very low leverage. EPS stands at ₹17.7, supported by PAT growth from ₹142 Cr. to ₹170 Cr. Quarterly profit variation (+11.6%) highlights steady earnings momentum. Dividend yield at 0.53% provides modest shareholder returns.
💹 Valuation: Current P/E of 52.8 is significantly higher than the industry average of 22.4, suggesting premium valuation. P/B ratio (~7.4, 938/126) reflects heavy premium pricing relative to book value. PEG ratio of 66.0 indicates overvaluation relative to growth prospects. Intrinsic value analysis suggests the stock is richly valued, with limited margin of safety.
🏢 Business Model & Health: KPR Mill operates in textiles and garments with strong competitive advantage in integrated manufacturing and exports. Low debt, consistent profitability, and robust demand support long-term sustainability. Institutional participation is positive, with FII holdings increasing (+0.15%) and DII holdings rising (+0.29%).
📈 Entry Zone: Technical indicators (RSI 54.4, MACD 11.4, DMA 50 at ₹914, DMA 200 at ₹948) suggest neutral momentum. Accumulation near ₹880–₹920 could be favorable. Long-term investors may hold, though valuations are stretched compared to industry peers.
Positive
- ✅ Strong PAT growth (+11.6%) indicates earnings resilience.
- ✅ Healthy ROCE (18.6%) and ROE (14.9%) reflect efficient capital use.
- ✅ Very low debt-to-equity ratio (0.09) ensures financial stability.
- ✅ Institutional support with both FII and DII holdings increasing.
Limitation
- ⚠️ High P/E (52.8) compared to industry average (22.4) suggests overvaluation.
- ⚠️ P/B ratio (~7.4) reflects significant premium pricing.
- ⚠️ PEG ratio (66.0) highlights overvaluation relative to growth.
Company Negative News
- 📉 Valuations remain stretched compared to industry peers.
- 📉 Dividend yield at 0.53% offers limited shareholder returns.
Company Positive News
- 📈 PAT growth from ₹142 Cr. to ₹170 Cr. shows strong operational performance.
- 📈 Institutional confidence reflected in rising FII and DII holdings.
Industry
- 🌐 Industry P/E at 22.4 indicates moderate sector valuations.
- 🌐 Textile and garment sector benefits from export demand and domestic consumption growth.
Conclusion
🔎 KPR Mill is fundamentally strong with steady earnings growth, efficient capital returns, and low debt. However, valuations are stretched with a high P/E and PEG ratio. Entry near ₹880–₹920 offers a balanced risk-reward opportunity. Long-term holding is justified, though investors should monitor valuation risks and dividend policy closely.