Hold Kewal Kiran Clothing; target of Rs 1770: Sharekhan

Sharekhan's research report on Kewal Kiran Clothing

FY2018 – Challenging year for Kewal Kiran Clothing Limited (KKCL) on account of hiccups in macro environment and intense competition from online players. Investors with a long-term view and looking for a lean balance sheet company can stay invested in KKCL.  Revenue of KKCL declined and higher operating expenses led to dent in margins and profitability in Q4FY2018.

Outlook

We reduce our earnings estimates substantially for FY2019/FY2020 and maintain our Hold rating with a revised price target of Rs. 1,770.