Our 20th company in the Series of Best Stocks to Buy in India for Long term 2022 is KPR Mill Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
KPR Mill Limited is an apparel manufacturing company, which is engaged in the business of producing yarn, knitted fabric, readymade garments and wind power.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹20,956cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 24.89
Sector PE Ratio: 136.21
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 6.58
Sector PB Ratio : 5.82
PB Ratio of this company is high than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.02%
Sector Dividend Yield : 0.58%
Dividend of this company is Low than Sector’s dividend. So it’s Below Average PB than the peers of this company.
ROE: 27.76%
ROCE: 37.10%
ROE (Return on equity) and ROCE (Return on capital equity) is Good.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2022 | 4,920.49 | 841.84 |
| 2021 | 3,572.94 | 515.26 |
| 2020 | 3,389.09 | 376.68 |
| 2019 | 3,420.91 | 334.87 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2022 | 2021 | 2020 | 2019 |
| 1,671.10 | 901.21 | 1,016.55 | 1,183.57 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 , Company have 1,671.10 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2022 | 2021 | 2020 | 2019 |
| -398.14 | 373.91 | 491.64 | -26.52 |
Debt Level: KPR Mill net debt to equity ratio (22.4%) is considered satisfactory.
Reducing Debt: KPR Mill debt to equity ratio has reduced from 53.2% to 37.2% over the past 5 years.
Debt Coverage: KPR Mill debt is well covered by operating cash flow (41.7%).
Interest Coverage: KPR Mill interest payments on its debt are well covered by EBIT (38.6x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2022 | 74.78% | 3.74% | 12.99% | 0.00% | 8.33% |
| Mar 2022 | 74.78% | 4.33% | 12.03% | 0.00% | 8.85% |
| Dec 2021 | 74.78% | 4.33% | 11.98% | 0.00% | 8.85% |
| Sep 2021 | 74.78% | 4.33% | 13.00% | 0.00% | 8.85% |
Above table showing there is no big change in Promotors holding which is 74.78% in June 2021. FIIs invested in June 2022 with 3.74% and retail investor is 8.33%.
Investment Checklist for KPR Mill Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 14.8% per year for the next 3 years
- Debt level is low and not considered a risk
- Dividend is too low to be a concern
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or KPR Mill became profitable
- They have sufficient analyst coverage
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹55B)
- Market cap is meaningful (₹209B)
- KPR Mill does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
[/membership_protected_content]
[membership_protected_content]
Entry Buying Zone : 500 to 550
Target: 800 (50% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
[/membership_protected_content]
Hope you liked Our 20th company in the Series of Best stocks to buy in India for Long term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss