Sharekhan's research report on KPR Mill
KPR Mills (KPR) reported mixed performance in Q3FY25, with revenue growing by 23% y-o-y to Rs. 1,592 crore, while EBITDA margin fell 211-bps y-o-y to 19.8%, leading to 8.1% y-o-y PAT growth to Rs. 202 crore. The textile business delivered good performance with volume-led 22% y-o-y revenue growth and ~190 bps y-o-y rise in margins. Sugar volumes rose ~3x y-o-y, while ethanol volumes fell ~34% y-o-y. Profitability of the sugar business was severely impacted with margins sharply falling to 6.7% (from 25% in Q3FY24).
Outlook
The stock has corrected by 27% since its recent high and trades at 37x/30x/25x its FY25E/FY26E/FY27E EPS and 24x/19x/16x its FY25E/FY26E/FY27E EV/EBITDA, respectively. We maintain Buy with a revised PT of Rs. 1,018.
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