Buy KPR Mill; target of Rs 685: Sharekhan

Sharekhan is bullish on KPR Mill has recommended buy rating on the stock with a target price of Rs 685 in its research report dated May 04, 2023.

Broker Research

May 07, 2023 / 11:22 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on KPR Mill

KPR Mill (KPR) posted a mixed bag of numbers, with revenue growing by 34% y-o-y, while higher cotton prices and a change in revenue mix affected both gross and EBITDA margins, which plunged by 744 bps and 675 bps y-o-y, to 33.4% and 16.4% respectively, leading to 5% y-o-y decline in PAT to Rs. 209.6 crore. Management expects export demand for garments to recover gradually in 6-8 months. This along with higher realisations and strong growth in sugar business will aid double-digit revenue growth. EBIDTA margins would improve with a correction in input prices. Modernisation and capacity expansion (in textile/power/ethanol business) to add Rs. 250 crore in revenues in the coming years and will provide more competitive advantage in the export markets.

Outlook

At 19x/15x its FY2024E/FY2025E EPS and 12x/10x its FY2024E/FY2025E EV/EBITDA, stock offers favourable risk-reward. We maintain a Buy on the stock with a revised price target (PT) of Rs. 685.

For all recommendations report, click here