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Last Updated : Nov 02, 2018 12:31 PM IST | Source: Moneycontrol.com

Buy Kewal Kiran Clothing; target of Rs 1704: Anand Rathi

Anand Rathi is bullish on Kewal Kiran Clothing has recommended buy rating on the stock with a target price of Rs 1704 in its research report dated October 26, 2018.

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Anand Rathi's research report on Kewal Kiran Clothing


In H1 FY19 Kewal Kiran?s net revenue grew ~4% y/y, to `2,582m. The EBITDA margin expanded 417bps to 26.8%. The RoCE improved 386bps to 30% up from 26% last year. However, due to vigorous expansion in LFS and e-commerce, the cash-conversion cycle lengthened to 144 days, from 103 in FY18. The recent fall in the stock price lead us to upgrade our rating to a Buy, with a revised target of `1,704.


Outlook


We introduce FY21e and roll-over our valuation to FY21. The stock price has fallen ~15% in the last quarter, leading us to upgrade our rating to a Buy with a revised target of `1,704 valuing it at 15x FY21e EV/EBITDA.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Nov 2, 2018 12:31 pm
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