Large Rectangle Pattern breakout seen in KPR MILL

27 Nov 2023

Hello Traders and Investors,
Guy's we have seen large neet and clean Rectangle pattern breakout in KPR MILL. Price has given a consolidation almost near to 2 years, earlier trend was uptrend and breakout has seen in uptrend so there is higher probability that we will see huge momentum in coming weeks. Well stock is highly strong as technically and fundamentally. It has already made Billionaires to their investors who invested in ipo times and even later on after ipo. We all know investment needs Time to grow. So now if anybody wants to go long can go with given levels.

ABOUT COMPANY:-
K.P.R. Mill is engaged in one of the largest vertically integrated apparel manufacturing Companies in India. The Company produces Yarn, Knitted Fabric, Readymade Garments and Wind power.

KEY POINTS
Product Range:-
The company produces a wide range of products viz. yarn, fabric, garments, sugar, molasses, ethanol, automobile parts, and others. It has a presence across the textile, sugar, power, and automobile industry.

Presence across Textile Value Chain:-
The company is a vertically integrated producer of textiles. It produces yarns, fabrics, and knitted garments. It uses ~29% of its yarn and ~61% of its fabric for captive production.

Revenue Breakup FY22:-
Presently, yarns & fabric account for 43% of revenues, followed by garments (~40%), sugar (13%), and others (4%).

Geographically Diverse Operations:-
In FY22, the company earned 62% of its revenues from domestic sales and the rest 38% from international sales. The company exports to over 60 countries, its major export destinations are UK, China, Australia, and the USA. Top 5 export destinations contribute ~62% of total exports in FY21.
Diversified Customer Base:-
The company has a strong customer base with ~1,200 regular domestic clients for yarn and fabric and ~60 leading international brands for garments. In FY21, Top 10 export customers account for 72% of total exports and top 10 domestic customer account for 9.3% of domestic revenues. No single customer accounts for over 10% of the company's revenues in FY21 and FY22.

Retail Segment (FASO):-
In 2019, the company started a new brand 'FASO' under which it sells innerwear and athleisure garments. The product categories include Brief, trunk, boxer shorts, vest, gym vest, muscle tee and athleisure. It aims to manufacture 100% of the brand's products in-house.. Faso Products are sold through more than 3000 retail stores.

Order book:-
As of Q4FY22, co. has an order book of 900 crore.

Manufacturing Capabilities:-
Company owns 15 manufacturing units located in Tamil Nadu, Karnataka and Ethiopia.
Combined capacity details
It is one of the largest apparel manufacturers in India with a capacity of 105 million knitted garments. It's Ethiopian manufacturing facility has an installed capacity of 10 million knitted garments p.a.
Expansion
In FY 2022, co. established a new Garment facility with a capacity to produce 42 million knitted garments per annum at Chengappally, Erode District Tamil Nadu. The expansion of sugar, cogeneration and ethanol production capacity with 10,000 TCD, 50 MW and 230 KLPD at Chowdapur, Gulbarga District, Karnataka has also been completed.

Buy-back:-
Co. resorted to a Buyback of 22,36,000 equity shares through the "Tender Route" process at a price of 805 per Share. The total consideration amounted to 80 Crores representing 7.73% of the fully paid-up equity share capital. Buyback was completed on 26th April 2022.

Market Cap
₹ 29,198 Cr.
Current Price
₹ 854
High / Low
₹ 928 / 479
Stock P/E
37.0
Book Value
₹ 118
Dividend Yield
0.47 %
ROCE
24.4 %
ROE
23.4 %
Face Value
₹ 1.00
Debt
₹ 843 Cr.
EPS
₹ 23.1
PEG Ratio
1.63
Promoter holding
73.8 %
Intrinsic Value
₹ 384
Pledged percentage
0.00 %
EVEBITDA
23.6
Change in Prom Hold
-1.02 %
Profit Var 5Yrs
22.7 %
Sales growth 5Years
15.4 %
Return over 5years
48.4 %
Debt to equity
0.21
Net profit
₹ 789 Cr.

PROS

Company has reduced debt.
Company has delivered good profit growth of 22.7% CAGR over last 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 25.6%

Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.

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