KPRMILL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.6

📊 Core Financials & Profitability

Revenue Growth: Annual revenue rose to ₹6,387 Cr in FY25 from ₹6,059 Cr in FY24 — a steady upward trajectory

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Profit Margins: Net profit increased to ₹815 Cr from ₹805 Cr YoY, with quarterly PAT at ₹162 Cr — up 5.48% QoQ

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Return Metrics

ROE: 17.6% and ROCE: 21.5% — excellent, reflecting strong capital efficiency.

EPS: ₹19.4 — solid for a ₹1,118 stock.

Debt Profile: Debt-to-equity at 0.06 — virtually debt-free, offering financial resilience.

Dividend Yield: 0.45% — modest, but consistent with a ₹2.50/share payout announced twice in FY25

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💸 Valuation Indicators

Metric Value Insight

P/E Ratio 57.9 Richly valued vs. industry PE of 23.0.

P/B Ratio ~9.89 Expensive relative to book value ₹113.

PEG Ratio -14.5 Negative PEG suggests unreliable growth forecast or earnings compression.

🔍 Conclusion: Valuation is stretched, but justified by strong fundamentals and low debt. PEG ratio flags caution on future earnings momentum.

🧵 Business Model & Competitive Edge

Core Operations: KPR Mill is a vertically integrated textile company with operations in yarn, fabric, garments, and sugar.

Strategic Strengths

Strong export base and backward integration.

Consistent EBITDA margins and high delivery volumes (80%+).

Active investor engagement and analyst meetings signal transparency

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Growth Outlook

Bullish sentiment from analysts with targets ranging from ₹1,075 to ₹1,140

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Stock split history and dividend consistency reflect shareholder-friendly policies.

📉 Technicals & Entry Zone

RSI: 69.4 — nearing overbought territory.

MACD: 8.83 — bullish momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — strong trend.

📌 Suggested Entry Zone: ₹1,050–₹1,080 — near 50-DMA, offering better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and sector tailwinds support long-term value.

Buy on Dips: Prefer entry below ₹1,080, especially if RSI cools off.

Monitor: Export demand, cotton price trends, and margin sustainability.

You can explore Moneycontrol’s full financial breakdown or long-term valuation insights from Stocks-Buy for deeper analysis. Let me know if you'd like a peer comparison with Page Industries or Gokaldas Exports next.

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