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Kewal Kiran Clothing Ltd. Stock Analysis

Small Cap
Evaluated by 809 users | BSE: 532732 | NSE: KKCL |
Textile
Incorporated in 1981, Kewal Kiran Clothing Limited today 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. The company began as a...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kewal Kiran Clothing Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 24.12%24.2%20.94%22.07%20.49%20.16%17.54%14.7%15.22%13.85%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 237302305374417467467460503530
Y-o-Y Gr. Rt.-27.6%0.9%22.7%11.5%12%-0.1%-1.3%9.2%5.3%
Adjusted EPS (Rs.) 37.4142.0941.749.3951.1551.9950.9948.6356.0954.44
Y-o-Y Gr. Rt.-12.5%-0.9%18.4%3.6%1.6%-1.9%-4.6%15.3%-2.9%
Book Value per Share (Rs.) 160.45183205.97235.78259.48242.38303.86324.26349.28362.21
Adjusted Net Profit 46.151.951.460.96364.162.959.969.167.1
Net Op. Cash Flow (Rs. Cr.) 38.936.966.242.275.346.980.155.6-0.450.9
Debt to Cash Flow from Ops 0.140.40.210.280.150.620.510.87-252.591.73
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kewal Kiran Clothing Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.4%4.9%4.3%5.3%
Adjusted EPS 4.3%1.3%2.2%-2.9%
Book Value per Share 9.56.963.7
Share Price -1.2% -19.1% -23.9% -25.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.7324.5121.4422.3620.6620.7218.6715.4916.6515.3
Operating Profit Margin (%) 29.0424.3124.1824.9823.1622.2821.1621.3322.3417.95
Net Profit Margin (%) 19.4917.1816.8816.2915.1313.7313.4713.0213.7512.67
Debt to Equity 0.030.070.060.040.040.10.110.120.220.2
Working Capital Days 114106113108112120133140166189
Cash Conversion Cycle 5556596165697886115139
Entity Percentage Holding
Promoters 74.25%
Institutions 21.27%
Non-Institutions 4.48%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kewal Kiran Clothing and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kewal Kiran Clothing is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kewal Kiran Clothing's performance infers:

Kewal Kiran Clothing earnings have grown by 1.3%, whereas share price has depreciated -19.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kewal Kiran Clothing share prices over the last 10 years. Here is what we found out:

Kewal Kiran Clothing share price has depreciated 6.3% annually over the past ten years.

Incorporated in 1981, Kewal Kiran Clothing Limited today 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.

The company began as a manufacturer of men’s wear for reputed brands. The company is exposed to global standards in quality, technology, marketing and branding. In 1989, the company introduced “Killer“ the first

Incorporated in 1981, Kewal Kiran Clothing Limited today 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.

The company began as a manufacturer of men’s wear for reputed brands. The company is exposed to global standards in quality, technology, marketing and branding. In 1989, the company introduced “Killer“ the first international denim brand created in India. Today 'Killer' is one of the most successful and widely recognized brands in the Indian apparel industry.

Innovation has been the hallmark of Kewal Kiran Clothing Limited. A marriage of design and technology, the company has constantly introduced new fits, finishes and fabrics. The company’s own R & D team working closely with designers is constantly innovating – creating an exciting array of product lines in a variety of fabrics, washes and cuts, using the latest in technology and processes. The company’s own manufacturing and processing set up enables it to have a speedy ‘go-to-market’ time frame – from design to production.

Fashion with 'Quality' is the cornerstone of each collection introduced by the company. The company’s strong fashion forecasting and trendsetting abilities have created brands which are vibrant, trendy and with an attitude. Each brand has been carefully crafted keeping in mind desires and attitudes of specific market segments. Each brand is an expression of its customer.

The trendiest collections are backed by a strong retail and distribution network. The company’s extensive reach has been built in a strategic and planned manner over the years.

The success of Kewal Kiran Clothing Limited can be attributed to a great extent to its manufacturing capacity. The company has inherent core competency in manufacturing. From sourcing to finishing every aspect of the company’s manufacturing has added to its success.

With 5 units, an annual capacity of 25 lakh pieces, over 800 employees, the latest technologies in jeans manufacturing, the company’s ability to innovate in manufacturing enables it to quickly go from design to market.

The company has chalked out plans for growth in manufacturing capacities to meet the growing markets for its brands internationally.

Product range of the company includes:

Jeans, Cotton Shirts, Jackets, Denim Shirts, Non-Cotton Shirts, Knitted T-Shirts, Cotton Trousers, Non-Cotton Trousers and Accessories like bags, belts, caps, etc.

Brand Variety

  • Killer-  Launched in 1989, Killer is the flagship brand of the company. A power brand. A brand that is youthful, trendy, vibrant and with an attitude. The focus of the brand is 16-25 years segment. The power brand enjoys a leadership position in the premium menswear in this segment. Killer Jeans is the largest selling denim brand in India. The brand's product line includes jeans, shirts and jackets.
  • Lawman-The Clubwear range of Shirts, Denims, Cotton Trousers and Denim Jackets from the Kewal Kiran Clothing Limited stable is Lawman. The range targets the young age group between 18 to 28 years. A distribution network of 15 distributors and 750 retailers and a price range from Rs 695 to Rs 1,995, the brand is growing aggressively.
  • Easies-A brand for the young executives and for the new times- when being successful is also being cool. A Semi-formal range for men between the age group of 25 – 40 yrs the brand continues relation of Kewal Kiran Clothing Limited with its customers through the various phases of life and the various aspects of life.
  • Integriti-Launched in 2002, Integriti from the Kewal Kiran Clothing Limited. portfolio is a brand for the masses. Unpretentious! Casuals and Formal shirts, T-shirts, Jeans, Cotton trousers. A brand that is positioned as a FMCG. It is aiming for a significant share of the Rs 5000 crore branded market. A brand that promises quality at an economical price and comes from Kewal Kiran Clothing Limited.
  • K-Lounge-K-Lounge is a trendsetting Fashion Retail Chain promoted by India's premiere Fashion House - Kewal Kiran Clothing Limited The company boasts of revolutionizing Fashion India Inc. through their 4 brands Killer, Easies, Lawman and Integriti. All these brands have attained a cult status and are exclusively available through the K-Lounge Fashion Chain.

Awards/ Achievements

  • 1996 Killer - Brand of the year - The Arvind Mills Limited 2001-02 (National Garment Fair) - CMAI AWARDS• Golden Scale TrophyAdvertising Campaign of the year• Golden Scale TrophyDenim Brand of the year• Silver SalverMost Innovative Display
  • 2003 (National Garment Fair) CMAI AWARDS• Silver SalverPresented to 'Lawman'• First PrizeMost Innovative Display (Brand Wagon)IFA 1st Inside Fashion Award (IFA)• â€œPower Brand – For Excellence in Retail performance'Award Category – Men’s Wear Jeans - ‘Killer’
  • 2001 IFA • HALL of FAME Jeans wear brand of the year - ‘Killer’IFA IFA -3rd Inside Fashion Award • Campaign of the year – ‘Killer’
  • 2005 • CNBC TV 18 – ICICI Bank Award for best SME Company in Textile/ Apparel Sector• Golden Trophy by CMAI for casual wear brand of the year (small & medium) INTEGRITI

Milestones of the company:

  • 1980- Kewal Kiran & Co. was incorporated.
  • 1989- Launch of Killer
  • 1994- Exporting of Killer brand to UAE
  • 1998- Launch of Easies -Launch of Lawman
  • 2000- Move towards corporate structure
  • 2002- Launch of Integrity
  • 2004- Launch of first K- Launge
  • 2005- Consolidation of business under one entity
  • 2006- IPO of 31 lakh shares
  • 2007- Killer Women wear launched -Killer & Integrity exclusive brand outlets launched
  • 2008- Over 100 retail stores (Including EBOS)

Recent developments

Kewal Kiran Clothing in May 2009 has raised funds to the tune of Rs 806 million by issuing 3.10 million equity shares of Rs 10 each at a premium of Rs 250 a share. The proceeds of the issue would be utilized for capital expenditure in setting up new manufacturing facilities, expansion of distribution network by opening additional exclusive outlets, building corporate office and to meet other general corporate purposes.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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