KPRMILL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: KPR Mill Ltd. (₹1,151)

Investment Rating: 4.1

KPR Mill stands out as a high-quality, long-term investment candidate with robust financial metrics, operational efficiency, and low debt. However, signs of premium valuation and a negative PEG ratio suggest close monitoring on price and earnings growth trends.

💼 Fundamental Overview

ROCE: 19.8%, ROE: 17.0%

✅ Excellent efficiency and shareholder return indicators — mark of a well-run company.

Debt-to-Equity: 0.09

✅ Very low leverage — offers resilience and room for growth-driven borrowing if needed.

Dividend Yield: 0.43%

Steady but minor income stream — not central to long-term wealth creation in this stock.

EPS: ₹23.8, Book Value: ₹146

Price-to-book ≈ 7.9 — suggests it trades at a premium, justified only if growth persists.

PAT Qtr: ₹205 Cr vs ₹202 Cr

Stable earnings, though slight dip in quarterly variation (-4.24%) shows cyclical sensitivity.

⚖️ Valuation & Technicals

P/E: 49.3 vs Industry PE: 27.8

Rich valuation — demands high earnings growth to justify pricing.

PEG Ratio: -64.9

❌ Likely due to negative or negligible projected EPS growth — requires caution in expecting earnings acceleration.

DMA50: ₹1,149, DMA200: ₹1,029

Price hovering around 50DMA — technically balanced. Above 200DMA implies overall trend remains bullish.

RSI: 45.0, MACD: 12.6

Neutral to mildly bullish signals — no clear momentum extremes.

FII ↑ 0.30%, DII ↑ 2.51%

Institutional backing rising — reinforces long-term stability and investor confidence.

🎯 Ideal Entry Price Zone

Suggested Entry: ₹1,050–₹1,100

Provides slight discount vs current price and aligns with technical support near 50DMA.

Prefer entry when RSI reaches 40 and MACD begins to flatten after a pullback.

🛣️ Exit Strategy / Holding Period

If already holding

Holding Period: Long-term (2–4 years) — supported by strong ROCE/ROE and financial stability.

Exit Targets

Consider booking profits in ₹1,300–₹1,375 range, especially if RSI breaches 70 and valuation metrics remain stretched.

Re-Evaluate If

PEG stays negative for multiple quarters.

ROCE/ROE trend down toward industry averages.

Quarterly earnings shrink beyond seasonal fluctuations.

📌 Verdict

KPR Mill is a quality compounder in the textile space — robust fundamentals, low debt, and institutional interest suggest it’s built for durability. While current valuation is steep, investors with a long horizon and tolerance for cyclical soft patches can benefit from its consistent operating performance.

Want to visualize earnings trends over time or compare it with peers like Page Industries or Trident? Let’s sketch it out together.

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