Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

Buy KPR Mill: target of Rs 1420: Sharekhan

Sharekhan is bullish on KPR Mill has recommended buy rating on the stock with a target price of Rs 1420 in its research report dated April 16, 2021.

April 21, 2021 / 01:55 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on KPR Mill


Reduction in replacement cycle to 15-20 days from 20-25 days earlier will give boost to garment demand; the garmenting division’s revenue is expected to post a CAGR of 21% over FY2020-FY2023 with new capacity. New sugar facility (Sugar – 10,000 TCD and ethanol 230 kilo litre per day) will contribute additional revenue of Rs. 500-600crore in FY2023E; sugar division’s margins are expected to be at 25%. Balance sheet remains strong with Rs. 350 crore of cash on books and debt:equity ratio standing at 0.3x as of December 2020. The company expects return ratios to significantly improve once new capacities reach optimum utilisation.



Outlook


We maintain our Buy recommendation on KPR Mill with a revised PT of Rs. 1,420. Integrated business model, deleveraged balance sheet, and strong growth prospects in the garmenting business make it a good pick in the textile space with decent valuation of 12x its FY2023E EPS.


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.

Broker Research
first published: Apr 21, 2021 01:55 pm

stay updated

Get Daily News on your Browser
Sections