Buy KPR Mill: target of Rs 755: Sharekhan

Trading Calls - Equity F&O

Sharekhan is bullish on KPR Mill has recommended buy rating on the stock with a target price of Rs 755 in its research report dated December 17, 2021.

Broker Research

December 20, 2021 / 10:25 AM IST

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Sharekhan’s research report on KPR Mill

Integrated business model, sustained export demand, and strong return profile makes it a best play in the textile space. New garment production capacity of 42 million garments is commissioned at Tamil Nadu; garment business revenue is expected to post a CAGR of 22% over FY2021-FY2024 with total capacity of 157 million garments. Capital allocation in high RoCE business (garment – 30%; ethanol – 22-23%) will help in improving RoCE to 31.9% in FY2024 from 25.2% in FY2021. Export demand remains strong in the US and Europe, while free trade agreement with European Union, retailers/large international players scouting for sustainable supply option in Asia, and US likely to put sanctions on countries such as Bangladesh are potential growth drivers for the company in the medium term.

Outlook

We maintain Buy on KPR Mill Limited (KPR) with a revised PT of Rs. 755.

For all recommendations report, click here

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