This is my first post to this forum. I would like to get some inputs from the experts on KPR mills.
Please have a look on the following data. I am currently holding 10% of portfolio with kpr mills as no loss no gain and invested in since last year. Query should I stay invested or exit.
KPR Mill Ltd. is an apparel manufacturing company engaged in the production of yarn, knitted fabric and readymade garments. It has one of the largest vertically integrated manufacturing capacities in India, enabling the company to utilize and customize the products as per client specifications. Building on its maiden business in 1984, the company currently has 0.35 Mn spindles to produce 90,000 MT of yarn per annum, knitting facility to produce 27,000 MT per annum and garmenting facility to produce 95 Mn pieces per annum (one of the largest garment manufacturers in India). The power requirements are met through the company owned 66 wind mills and through green power through a Co-gen Cum Sugar Factory with capacity of 30 MW and 5000 Tons Crushed per Day (TCD). The board, including Chairman Mr. K.P. Ramasamy and Mr. K.P.D. Sigamani, the Managing Director, has vast experience in the textile industry, which has aided in the company’s evolution into fabric and garment segments.
Vertically integrated operations
KPR has one of the largest vertically integrated manufacturing capacities in India, producing superior readymade apparels, fabrics and various types of value added yarn. Vertical integration has helped the company diversify the business and move up the value chain (into fabric and garments) along with maintaining cost benefits. As of Q1FY18, nearly 44% yarn and 29% of fabric are used for captive consumption in the manufacturing of value added products such as fabric and knitted garments.
- Volatility in cotton prices, Raw material price fluctuation
- Forex volatility
- Change in government policies (international and domestic)
- Slower than expected ramp up in the garment business
Parameter MAR’17 MAR’16
Earnings Per Share (Rs) 32.26 41.28
DPS(Rs) 0.75 10.00
Book NAV/Share(Rs) 151.29 260.36
ROA(%) 13.51 8.91
ROE(%) 22.72 16.93
ROCE(%) 22.35 17.15
Karvy report Oct 24, 2017 Click here
Holding Disclosure: I am currently holding 10% of portfolio with kpr mills at no loss no gain and invested in since last year. Query, should I stay invested or exit?