Kewal Kiran Clothing shares zoom 10% as Q2 net profit grows 16%

The quarterly net profit was at Rs 49.80 crore, marking a 27.27% rise from Rs 39.13 crore last year.

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26 Aug, 2025 12:21

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Shares of Kewal Kiran Clothing Ltd rallied over 10 percent on the back of better-than-expected earnings for the September quarter.

The stock scaled a high of Rs 797 and gained as much as 10.03 percent intraday before shedding some gains. At 10.07am, the stock was trading at Rs 775 a share, up 7 percent from its previous close.

In the September 2023 quarter, Kewal Kiran Clothing reported net sales of Rs 262.48 crore, a 15.97 percent increase from Rs 226.34 crore a year ago. Its quarterly net profit stood at Rs 49.80 crore, marking a 27.27 percent rise from Rs 39.13 crore last year. EBITDA stood at Rs 70.03 crore, up 25.23 percent from Rs 55.92 crore, while EBITDA margin increased to 23.5 percent from 22.1 percent.

Kewal Kiran launched Junior Killer to enter the kidswear category to expand its age and gender portfolio. This brand is designed for boys aged 4 to 16, making Brand Killer a brand for ages 4 and beyond.

The company is also reinforcing its Brand Focused EBOs with 49 additions in H1 FY24, bringing the total Killer exclusive brand outlets (EBO) to 271 and overall EBOs to 470 as of September 30. The company said it is actively working on an additional 49 EBOs, set to be launched in the coming months.

Kewal Kiran said it enhanced visibility through branding and advertisements, including in-stadium branding during the India versus West Indies T-20 series and focused outdoor advertising.

ICICI Securities highlighted Kewal Kiran's strengths: Backward integration for quality and competitive pricing, brands leaving MBO channels due to competition, a strong brand history, excellent reputation with distribution partners, quality advantage, sound working capital management, and effective e-commerce competition with SKU differentiation.

Kewal Kiran also maintains an inventory turnover of around 140 days on COGS and 78 days on revenue for FY23. Inventory risk is minimal at 1-2 percent annually. Debtor days at 80 are due to varied channel payment timelines. Timely vendor payments ensure quality and efficiency, and Kewal Kiran excels with a healthy 30-day creditor days, one of the lowest among peers, the report said.