K
KPRMILL
701234567895012345678930123456789.1012345678900123456789
+4.20 (+0.56%)
NSE Volume
95.5K+
Broker Reports
BUY
BUY
BUY
BUY
BUY
BUY
BUY
BUY
BUY
HOLD
BUY
Given the market penetration, margin profile and the high return ratios, the stock warrants a premium valuation. The stock trades at 1 year forward P/E of 10x. and we upgrade our target multiple to 12x (near the 5 year average 1 year forward P/E) and revise our rating from ‘HOLD’ to ‘BUY’ with a revised target price of Rs. 836. Risk to the call include slowdown in the garmenting division expansion on the back of lower consumer sentiments and lower acceptance of the new brand in rest of India.
HOLD
With no clarification on the utilization levels /regarding launch of domestic innerwear business, we lower our revenue growth forFY20 (to 7.2% - lowest in the last 3 fiscals), but expect marginal improvement inmargins on the back of increasing garment share in the mix (+20 bps). We retain our ‘HOLD’ recommendation with a lowered target price of Rs.629.
HOLD
The stock trades at a 1 year forward valuation of 11x. While increasing garmentingsegment is a positive, we await clarity on the order flow for the Ethiopia plant andalso look forward to the soft launch for the innerwear segment which though is a large market (with few organized players) will be a challenge for the company to penetrate into the same. Thus we are cautious on the valuations and value the stock at 10x, slightly below the 5 year average 1 year fwd P/E on FY21E EPS of Rs. 64.5.
BUY
ACCUMULATE
BUY
BUY
ACCUMULATE
ACCUMULATE
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