Please refer to important disclosures at the end of this report
1
K.P.R. Mill Limited (KPR) one of the largest vertically integrated manufacturing
capacities in India producing Superior Quality Readymade Knitted Apparel,
Fabrics, Compact, Melange, Carded & Combed Yarn. A KPR came out with
strong set of performance despite higher cotton prices due to prudent
procurement of RM. The company has expanded its garment capacity to meet
increasing demand and better its profitability. Garment capacity is now around
95mn pieces, double din last 2 years and they are now one of the largest in the
country. Around 12mn garment green field capacity is ramping up and
construction of new 36mn garment green field facility is in progress. Now, the
company is planning to increase its processing capacity to further expand
profitability. With higher capacity, now the company has started targeting the US
market as well, for higher growth. Considering new garment capacity on stream,
doubling processing capacity plan, recent government support for garment
industry and recovery in sugar price one can see an upward move in the
financials. The company has reported consistent profit growth of 23.30% CAG
R
over the past 5 years and has been maintaining a healthy dividend payout o
f
18.65%. Hence Buy.
BUY
CMP `601
Stock Info
Sector
Beta 1.1
Bloomberg Code
Shareholding Pattern (%)
Promoters 75.0
MF / Banks / Indian Fls 13.3
FII / NRIs / OCBs 3.2
Indian Public / Others 8.6
Abs. (%) 3m 1yr 3yr
Sensex (5.4) 1.0 27.9
KPR Mill 3.8 44.9 634.5
Reuters Code KPRM.BO
KPR@IN
5
BSE Sensex 26,394
Nifty 8,142
Face Value (
`
)
Textiles
Market Cap (
`
cr) 4,499
52 Week High / Low 637/310
Avg. Daily Volume 4,697
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
K.P.R. Mill
Others | Textiles
November 30, 2016
K.P.R. Mill | Textile
November 30, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement K.P.R. Mill
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
(
< -15