Buy KPR Mill; target of Rs 710: Sharekhan

Sharekhan is bullish on KPR Mill has recommended buy rating on the stock with a target price of Rs 710 in its research report dated August 03, 2022.

Broker Research

August 05, 2022 / 22:23 IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

26 Aug, 2025 12:21

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Sharekhan's research report on KPR Mill

In Q1FY23, KPR Mill’s (KPR’s) revenue growth was strong for yet another quarter, at 75.5% y-o-y to Rs. 1,584.8 crore aided by a 63% y-o-y growth in the textile business, while the sugar business reported 2.6x y-o-y growth. Yet, EBITDA margin fell by 160 bps y-o-y to 23.2%, as cotton/yarn prices surged. PAT grew by 35.3% y-o-y to Rs. 226.7 crore. Textile business PBIT margin came in at 22.8% (down 106 bps y-o-y), while sugar business PBIT margin stood at 9.7% (up 426 bps y-o-y). A slowdown in global export markets and higher input prices would keep near-term performance stressed but KPR’s integrated business model would help it recover faster than peers.

Outlook

Stock trades at 21.0x/17.8x its FY2023E/FY2024E EPS and 13.7x/11.5x its FY2023E/FY2024E EV/EBITDA. We maintain a Buy with a revised PT of Rs. 710.

For all recommendations report, click here