KPRMILL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | KPRMILL | Market Cap | 30,402 Cr. | Current Price | 888 ₹ | High / Low | 1,395 ₹ |
| Stock P/E | 52.1 | Book Value | 119 ₹ | Dividend Yield | 0.56 % | ROCE | 21.5 % |
| ROE | 17.6 % | Face Value | 1.00 ₹ | DMA 50 | 929 ₹ | DMA 200 | 998 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.20 % | PAT Qtr | 132 Cr. | PAT Prev Qtr | 162 Cr. |
| RSI | 49.0 | MACD | -16.9 | Volume | 10,41,687 | Avg Vol 1Wk | 15,93,589 |
| Low price | 756 ₹ | High price | 1,395 ₹ | PEG Ratio | -13.0 | Debt to equity | 0.05 |
| 52w Index | 20.7 % | Qtr Profit Var | -37.1 % | EPS | 17.1 ₹ | Industry PE | 17.6 |
📊 Financials: KPR Mill shows healthy fundamentals with ROCE at 21.5% and ROE at 17.6%, reflecting efficient capital usage. Debt-to-equity ratio of 0.05 indicates negligible leverage, ensuring financial stability. However, quarterly PAT declined from 162 Cr. to 132 Cr. (-37.1%), signaling earnings pressure. Cash flows remain stable due to strong operational efficiency.
💹 Valuation: Current P/E of 52.1 is significantly higher than industry average (17.6), suggesting premium valuation. P/B ratio (~7.5) is elevated, while PEG ratio (-13.0) indicates weak growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 820–860 ₹, offering better margin of safety compared to current price (888 ₹).
🏢 Business Model & Advantage: KPR Mill operates in textiles and garments with integrated manufacturing, spanning yarn, fabric, and apparel. Its competitive advantage lies in scale, efficiency, and diversified product portfolio. Market cap of 30,402 Cr. positions it as a large-cap textile player with global exposure.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 820–860 ₹. Long-term investors may hold cautiously given strong fundamentals and low debt, but premium valuation and profit decline warrant careful monitoring. Short-term weakness is visible (MACD negative, RSI neutral at 49), but long-term sector demand supports resilience.
Positive
- Strong ROCE (21.5%) and ROE (17.6%) highlight efficient capital usage.
- Debt-to-equity ratio of 0.05 ensures financial stability.
- Dividend yield of 0.56% adds moderate income appeal.
- FII holding increased slightly (+0.04%), showing foreign investor confidence.
Limitation
- High P/E (52.1) compared to industry average (17.6) indicates overvaluation.
- PEG ratio (-13.0) reflects weak growth-adjusted valuation.
- Quarterly profit decline (-37.1%) signals earnings pressure.
- Stock trading below DMA 50 (929 ₹) and DMA 200 (998 ₹) shows bearish trend.
- Volume lower than weekly average, indicating reduced liquidity.
Company Negative News
- Decline in DII holding (-0.20%) reflects reduced domestic institutional confidence.
- Quarterly PAT contraction highlights margin and demand challenges.
Company Positive News
- FII inflows (+0.04%) show continued foreign investor interest.
- Strong integrated textile operations provide resilience and scalability.
Industry
- Industry P/E at 17.6 indicates moderate valuation levels.
- Textile sector benefits from global demand but faces cyclical pressures.
- Companies with scale and efficiency hold competitive advantage.
Conclusion
⚖️ KPR Mill demonstrates solid fundamentals with strong return metrics and negligible debt. However, premium valuation, weak PEG ratio, and profit decline temper the outlook. Entry around 820–860 ₹ is recommended for long-term investors, with cautious monitoring of earnings performance and sector trends.
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