KPR Mill
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
KPR Mill's recent management commentary highlights a robust growth strategy, with a significant Rs.1,225 Crore expansion plan aimed at enhancing garmenting capacity and vertical integration. This strategic focus is expected to drive revenue growth and margin expansion, aligning with Vista's forecast of stable revenue growth and margins. The company's commitment to funding this expansion through internal accruals reflects strong operational cash flow, which is crucial for maintaining financial stability. However, KPR Mill faces potential headwinds from global textile demand cycles and execution risks associated with large-scale projects. The textile industry is currently expanding, supported by stable pricing power and increasing consumer demand, which bodes well for KPR Mill's long-term growth. Nevertheless, macroeconomic factors such as inflationary pressures and geopolitical uncertainties could impact consumer spending and operational costs. Over the next 12-24 months, key opportunities include leveraging Free Trade Agreements and government support to enhance competitiveness, while watchpoints include raw material price volatility and global supply chain disruptions. Overall, KPR Mill's strategic initiatives and favorable industry dynamics support Vista's outlook for stable growth and fair valuation
Why We Like This Stock
- Significant Rs.1,225 Crore expansion plan to enhance garmenting capacity and vertical integration
- Strong operational cash flow allows for funding expansion without external debt
- Favorable industry dynamics with stable pricing power and increasing consumer demand support revenue growth
Things To Watch Out For
- Exposure to global textile demand cycles and execution risks associated with large-scale projects
- Potential inflationary pressures and geopolitical uncertainties could impact operational costs and consumer spending
- Raw material price volatility, particularly for cotton, poses a risk to profit margins
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,060 | 6,388 | 6,650 | 7,065 | 7,494 |
| Profit Before Tax (Cr.) | 1,015 | 1,040 | 1,134 | 1,223 | 1,308 |
| PBT Margin | 16.7% | 16.3% | 17.1% | 17.3% | 17.5% |
| Net Profit (Cr.) | 807 | 808 | 882 | 948 | 1,013 |
| Earnings Per Share | 23.6 | 23.6 | 25.8 | 27.7 | 29.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ► Neutral | 1,200 | 11-Aug-2026 |
| Elara Capital | ▲ Buy | 1,287 | 17-May-2026 |
Company Overview
Show Company Profile
K.P.R. Mill Limited operates as an integrated apparel manufacturing company in India and internationally. It operates through three segments: Textile, Sugar, and Others. The company offers textile products, such as compact, cotton combed, carded, polyester cotton, viscose, grindel yarn, red label yarn, colour melange, slub yarn, cotton, poly cotton, melange, BCI, organic, and CMIA REEL yarns; knitted cotton fabrics and readymade knitted apparel; and readymade garments comprising casual, sports, active, sleep, and work wear for men, women, and children. It also produces sugar; ethanol; green energy through co-gen power; and wind power; and acts as a dealer for cars. The company offers its products under FASO brand name. K.P.R. Mill Limited was founded in 1984 and is based in Coimbatore, India.