By Aditya Raghunath
Investing.com -- Shares of KPR Mill Ltd (NS: KPRM ) have been on an upside for over a year now. Trading at Rs 442.95 on August 4, 2020, they closed Aug 3, 2021 on Rs 1,980.7. They are trading at Rs 1,994.3 as of this report.
The Coimbatore-based textile company reported solid numbers for Q1 FY22 despite pandemic-related challenges. Revenue was up 67% to Rs 903.7 crore compared to the corresponding quarter last fiscal. It was down 19% on a sequential basis. The textile segment, which accounts for 87% of the company’s revenue, grew 85% while the sugar segment, which accounts for 12%, fell 1.9%, compared to Q1 FY21.
And brokerages feel there is still some more steam left in the stock. ICICI Direct has said key triggers for the company’s future financial performance are “two major capex projects in the pipeline worth Rs. 750 crore towards garmenting facility (Rs. 250 crore) and ethanol facility (Rs. 500 crore)”.
It said, “Capital deployment towards value-accretive projects (targeted RoCE: garmenting: 30%, ethanol: 22%) augurs well for KPR.”
It added, “Robust opportunities in US market gives strong visibility for sustained growth in exports (currently Europe is the key market for garment exports).”
Antique Stock Broking has given the stock a target of Rs 2,397.
An amount of Rs 10,000 invested in the stock on Augusts 4, 2020 would be worth Rs 35,000 today.
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