Credit rating agency, CRISIL Independent Equity Research (IER) has maintained fundamental grade of ‘4/5’ on Kewal Kiran Clothing indicating good fundamentals. The rating agency has also assigned a Valuation Grade of ‘1/5’ to the company.
The company’s top-line grew 15.6% y-o-y to Rs 89.20 crore driven by volume and realisations. However, owing to higher raw material cost as a percentage of sales, EBITDA margin contracted 251 bps y-o-y. Despite a decline in EBITDA margin, adjusted PAT grew 25.5% to Rs 20.70 crore driven by higher other income.
Kewal Kiran Clothing is amongst the few large branded apparel manufacturers in India. The company with sales in Asia, Middle East and CIS, designs, manufactures and markets branded jeans, semi-formal and casual wear for men.
