K.P.R. Mill Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹1,105.00+₹6.40 (+0.58%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of K.P.R. Mill Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

K.P.R. Mill Limited operates as an integrated apparel manufacturing company in India and internationally. It operates through three segments: Textile, Sugar, and Others.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees20,308

Annual revenue₹6,378 Cr

How does it make money?

Turns over ₹6,378 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 20,308 employees supports ₹31.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.2% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 13.3% and earnings to grow about 15.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.3%

Est. earnings growth+15.2%

Analysts12

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +7% while net margin moved -1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+7%

Margin effect-1%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 41.4x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 39.6x
✗ P/B of 6.63x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

41.4x

3Y Median

39.6x

40 monthly readings · mean 39.6x · range 31.6x–49.4x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 39.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 40% below the peer median of 69.2x.

vs. its own history

Fair

39.6x median over 40 months · +5%

vs. sector peers

Cheap

69.2x median of 4 peers · -40%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.2x

PEG

19.70

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 56% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 20.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.0% to 15.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.0% to 20.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 56% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹793 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 2.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 22.0% to 15.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.3% CAGR
Latest reported year was 9.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹793 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹37,849 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

41.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.63x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹26.69

Profitable

Profitable on a per-share basis

ROE

15.2%

Strong

Strong capital efficiency

ROCE

20.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

9.6%

Modest

Modest growth

Profit Growth (YoY)

21.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.45%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹793 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.4%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

4.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1098.3 / 1115.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,960 Cr	₹5,824 Cr	₹6,136 Cr	₹6,378 Cr	+2.3%
EBITDA	₹1,296 Cr	₹1,270 Cr	₹1,288 Cr	₹1,363 Cr	+1.7%
EBITDA Margin	21.7%	21.8%	21.0%	21.4%	—
PAT (Net Profit)	₹814 Cr	₹805 Cr	₹815 Cr	₹867 Cr	+2.1%
EPS	₹23.81	₹23.56	₹23.85	₹25.35	+2.1%
ROE	22.0%	18.5%	16.3%	15.2%	—
ROCE	27.0%	23.1%	21.3%	20.0%	—
Total Debt	₹1,348 Cr	₹1,158 Cr	₹466 Cr	₹596 Cr	-23.8%
Free Cash Flow	-₹80 Cr	₹354 Cr	₹1,233 Cr	₹793 Cr	—

🟢 Revenue has grown at 2.3% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.7% a year).

🟡 EBITDA Margin has held roughly flat at 21.4% over 3 years.

🟢 PAT (Net Profit) has grown at 2.1% a year over 3 years.

🟢 EPS has grown at 2.1% a year over 3 years.

🔴 ROE has fallen from 22.0% to 15.2% over 3 years (-6.8 pts).

🔴 ROCE has fallen from 27.0% to 20.0% over 3 years (-7.0 pts).

🟢 Total Debt has shrunk at 23.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹80 Cr to ₹793 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,833 Cr

Total Liabilities

₹1,135 Cr

Cash & Equivalents

₹64 Cr

Operating Cash Flow

₹1,108 Cr

Capex

-₹315 Cr

Shareholding (proxy)

Institutional Holding

22.7%

Insider Holding

67.5%

Corporate Actions

Next Earnings

28 Oct 2026

Dividend Rate

₹5

Ex-Dividend Date

20 Jul 2026

Analyst Consensus

Recommendations

11 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,220.33

+10.4% vs CMP

Target Range

₹1,021 – ₹1,380

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive2 mixed2 general

Be Sure To Check Out K.P.R. Mill Limited (NSE:KPRMILL) Before It Goes Ex-Dividend

Simply Wall Street, 16 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

K.P.R. Mill Ltd. Share Price Up 4.79%: Price Rise Analysis

Univest, 11 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

KPR Mill Announces ₹2.50 Dividend as Share Price Climbs 0.68%

HDFC Sky, 21 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Did K P R Mill Shares Skyrocket 18% Today? Here’s the Reason By Trade Brains

Investing.com India, 24 Jun

Compare with KPR MILL

Equitymaster, 14 Oct

KPRMILL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Risk

MiddlingProfitability

WeakGrowth · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑