Tata-backed textile company order book at all-time high; reduced its debt and healthy ROE!

Furthermore, the company has reduced its debt and maintains an impressive track record of return on equity (ROE)

Indian markets experienced pressure on Monday following a promising performance in the previous week. Despite this, one stock that exhibited stability was KPR Mill Ltd.

KPR Mill Ltd stands as a leading vertically integrated apparel manufacturing company in India, renowned for its strong values. With 12 state-of-the-art manufacturing facilities and a workforce exceeding 30,000 employees, it exports to prominent international brands.

In the nine months ending December 2023, despite challenges, KPR achieved a consolidated revenue of Rs 4,418 crores and a net profit of Rs 592 crores. Key factors influencing the financials during this period included a decline in cotton prices, leading to reduced selling prices for yarn, and a decrease in yarn margins due to subdued demand in international markets.

Garment shipments faced delays in December due to cyclones affecting Tamil Nadu, particularly in the Chennai and Tuticorin port areas. Additionally, a government ban on using sugar juice for ethanol production aimed to regulate sugar prices. However, the current quarter presents an optimistic outlook, bolstered by our modernization and expansion plans, further supported by our strong financial position and healthy cash flow.

The company boasts an order book of Rs 1,100 crore, currently at an all-time high, with significant inquiries underway. Notably, Tata AIA Life Insurance Company Limited A/C Group Defensive Managed Fund holds 3,599,177 shares of the company.

Furthermore, the company has reduced its debt and maintains an impressive track record of return on equity (ROE), with a three-year average ROE of 25.6 percent.

Disclaimer: The article is for informational purposes only and not investment advice.