Buy KPR Mill; target of Rs 800: Sharekhan

Sharekhan is bullish on KPR Mill has recommended buy rating on the stock with a target price of Rs 800 in its research report dated June 13, 2023.

Broker Research

June 14, 2023 / 14:21 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on KPR Mill

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 (of 17% over FY23-25E). 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 a greater competitive advantage in export markets. Cumulative FCF to stand at Rs. 1,450 crore over the next two years; RoCE will improve to 28% in FY25E from 24.3% in FY23. KPR will deleverage its balance sheet in next two to three years.

Outlook

We re-iterate a Buy on KPR Mill (KPR) and revise upwards our target price to Rs. 800. The stock is trading at 21x and 17x its FY24E and FY25E earnings. With double-digit earnings growth visibility and a favourable risk-reward, KPR is the best bet in the textile space.

For all recommendations report, click here