Kewal Kiran Clothing Ltd Stock Analysis

BSE: 532732 | NSE: KKCL | Textile | Small Cap

BSE Share Price 26-May-2023 18:01
496.60 -2.95 (-0.59%)

DeciZen - Make an Informed Decision on Kewal Kiran Clothing

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Kewal Kiran Clothing Price Chart

P/E Ratio ( SA) :
25.65
Market Cap :
3,060.3 Cr.
52-wk low :
224.1
52-wk high :
592.4
Bole Toh?

1. Is Kewal Kiran Clothing Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Kewal Kiran Clothing Ltd is a good quality company.

2. Is Kewal Kiran Clothing Ltd undervalued or overvalued?

The key valuation ratios of Kewal Kiran Clothing Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Kewal Kiran Clothing Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Kewal Kiran Clothing Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Kewal Kiran Clothing:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 20.9%22.1%20.5%20.2%17.5%14.7%15.2%13.9%4.8%16.3%-
Value Creation Index 0.50.60.50.40.30.10.1-0.0-0.70.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 305374417467467460503530303608779
YoY Gr. Rt. %-22.7%11.5%12%-0.1%-1.3%9.2%5.3%-42.9%100.7%-
Adj EPS 8.39.910.210.410.29.711.210.93.213.119.4
YoY Gr. Rt. %-18.5%3.5%1.7%-1.9%-4.6%15.3%-2.9%-70.8%313.2%-
BVPS (₹) 41.247.251.948.560.864.969.972.470.377.688.8
Adj Net Profit 51.460.96364.162.959.969.167.119.681119
Cash Flow from Ops. 66.242.275.346.980.155.6-0.450.996.756.9-
Debt/CF from Ops. 0.20.30.20.60.50.9-252.61.70.51.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8%5.4%6.5%100.7%
Adj EPS 5.2%5.2%5.4%313.2%
BVPS 7.353.610.5
Share Price 11.7% 10% 52.3% 101.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 21.422.420.720.718.715.516.715.34.517.823.3
Op. Profit Mgn % 24.22523.222.321.221.322.3186.216.519.5
Net Profit Mgn % 16.916.315.113.713.51313.812.76.513.315.3
Debt to Equity 0.1000.10.10.10.20.20.10.20
Working Cap Days 113108112120133140166189296160297
Cash Conv. Cycle 596165697886115139193108181

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 23.30%

Sales growth is good in last 4 quarters at 32.97%

Sales growth has been subdued in last 3 years 6.51%

Net Profit has been subdued in last 3 years 5.41%

Latest Financials - Kewal Kiran Clothing Ltd.

Standalone Consolidated
TTM EPS (₹) 19.4 19.3
TTM Sales (₹ Cr.) 779 779
BVPS (₹.) 88.8 88.8
Reserves (₹ Cr.) 486 485
P/BV 5.59 5.58
PE 25.65 25.64
From the Market
52 Week Low / High (₹) 224.10 / 592.35
All Time Low / High (₹) 18.30 / 592.35
Market Cap (₹ Cr.) 3,060
Equity (₹ Cr.) 61.6
Face Value (₹) 10
Industry PE 26.7

Management X-Ray of Kewal Kiran Clothing :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Kewal Kiran Clothing

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Kewal Kiran Clothing Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Kewal Kiran Clothing on 26-May-2023 18:01 is : 496.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-May-2023 18:01 the market cap of Kewal Kiran Clothing stood at ₹ 3,060.3.
The latest PE ratio of Kewal Kiran Clothing as of 26-May-2023 18:01 is 25.65.
The latest PB ratio of Kewal Kiran Clothing as of 26-May-2023 18:01 is 5.59
The 52-week high of Kewal Kiran Clothing is ₹ 592.4 and the 52-week low is ₹ 224.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Kewal Kiran Clothing is ₹ 779.5 ( Cr.) .

About Kewal Kiran Clothing Ltd

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.

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