ICICI Direct has given Buy recommendation for KPR Mill with a target price of Rs. 815 in its research report issued on Apr 29, 2022

ICICI Direct’s research report on KPR Mill

KPR Mill is among select vertically integrated textile players in India (from yarn to garments) that has displayed consistent revenue growth and positive operating margin trajectory with strong return ratios. • It is one of India’s largest knitted garment manufacturer with total capacity of 157 million pieces (post expansion) • Over the years, it has consistently maintained ~18-20% margins with average RoCE of ~20% and D/E ratio of 0.4x.

Outlook

We like KPR as a structural long term story to play the apparel export space. Maintain BUY recommendation on the stock. We value KPR at Rs 815 i.e. 28x FY24E EPS.

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