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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532732 | NSE: KKCL

Kewal Kiran Clothing Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:55 pm

Market Cap 3,726 Cr.
Current Price 602
High / Low818/582
Stock P/E23.2
Book Value 124
Dividend Yield0.33 %
ROCE31.0 %
ROE25.1 %
Face Value 10.0
PEG Ratio0.47

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Kewal Kiran Clothing Ltd

Competitors of Kewal Kiran Clothing Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Go Fashion (India) Ltd 5,740 Cr. 1,0641,408/93367.0 1210.00 %15.7 %14.6 % 10.0
7NR Retail Ltd 14.7 Cr. 5.2410.7/4.72 9.870.00 %3.31 %4.00 % 10.0
Vaibhav Global Ltd 4,475 Cr. 269543/26334.7 77.92.23 %14.0 %10.8 % 2.00
V2 Retail Ltd 4,251 Cr. 1,2261,484/222102 83.50.00 %10.8 %10.6 % 10.0
Trent Ltd 2,29,913 Cr. 6,4608,346/2,630169 1320.05 %23.8 %27.2 % 1.00
Industry Average46,429.00 Cr1,415.7579.1883.800.37%14.12%16.07%7.57

All Competitor Stocks of Kewal Kiran Clothing Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales92175171170155226199199178262200219151
Expenses84143144137125176166160144201161177124
Operating Profit8322832295034393462394228
OPM %9%18%16%19%19%22%17%20%19%24%19%19%18%
Other Income464406781189811
Interest1111112221111
Depreciation2222222223333
Profit before tax9352933265236424166444835
Tax %2%23%25%24%18%25%25%26%18%25%25%21%27%
Net Profit9272125223927323450333825
EPS in Rs1.394.393.464.023.506.354.385.135.498.085.406.104.11

Last Updated: October 22, 2024, 4:41 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 4:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales294363398444466460503530303608779860833
Expenses220270301340368362391435284508628683663
Operating Profit74939710499981129519100152177171
OPM %25%26%24%23%21%21%22%18%6%16%19%21%20%
Other Income121287172122181717203737
Interest3333357975644
Depreciation654456887791010
Profit before tax7797981041081091199622105157200193
Tax %31%31%32%34%31%33%33%24%13%22%24%23%
Net Profit53676668757380731982119155146
EPS in Rs8.6710.8810.7511.0312.1111.8913.0411.863.1513.2519.3625.0723.69
Dividend Payout %40%39%47%109%31%56%52%73%146%143%26%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)26.42%-1.49%3.03%10.29%-2.67%9.59%-8.75%-73.97%331.58%45.12%30.25%
Change in YoY Net Profit Growth (%)0.00%-27.91%4.52%7.26%-12.96%12.26%-18.34%-65.22%405.55%-286.46%-14.87%

Kewal Kiran Clothing Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:42%
TTM:-2%
Compounded Profit Growth
10 Years:10%
5 Years:14%
3 Years:99%
TTM:13%
Stock Price CAGR
10 Years:5%
5 Years:26%
3 Years:39%
1 Year:-25%
Return on Equity
10 Years:19%
5 Years:18%
3 Years:21%
Last Year:25%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121212121262626262
Reserves242278307286362387418434421417486615705
Borrowings14121129414893915082662086
Other Liabilities566879969810912299100183204142263
Total Liabilities3243714104245135576466375827438178381,116
Fixed Assets44435460657082838286101110121
CWIP1043792311100
Investments122167178161205230236195131146158185372
Other Assets159161174200236248325356368510557543622
Total Assets3243714104245135576466375827438178381,116

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +664275478056-051975775136
Cash from Investing Activity +-79-37-2410-9-1434662-7-10-13
Cash from Financing Activity +-28-31-42-79-27-46-11-70-85-32-55-64
Net Cash Flow-41-279-2243-4-82674171059

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow60.0081.0086.0075.0058.0050.0019.004.00-31.0018.0086.00157.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5964719083961291181581038086
Inventory Days115138123156128146262267168376493123
Days Payable7878931319912014114812217814365
Cash Conversion Cycle97123101114112121250237205301430144
Working Capital Days435648745162111122116727373
ROCE %30%32%30%31%30%26%26%20%6%19%26%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.25%74.25%74.25%74.25%74.25%74.26%74.26%74.26%74.26%74.26%74.26%74.26%
FIIs1.33%1.66%1.87%3.95%3.48%2.44%2.62%2.60%2.53%2.10%2.80%2.81%
DIIs6.01%6.01%5.90%5.60%5.76%5.95%6.53%7.99%8.61%8.85%6.91%6.83%
Public18.40%18.08%17.98%16.21%16.51%17.34%16.58%15.14%14.59%14.80%16.03%16.11%
No. of Shareholders31,34729,02625,40625,66235,08330,94229,34230,26332,01633,37233,49534,814

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Small Cap Fund - Regular Plan915,4940.3360.86575,8882024-11-2158.97%
Bandhan Small Cap Fund825,1570.6554.86575,8882024-11-2143.28%
UTI Small Cap Fund575,8880.8238.29575,8882024-11-210%
Aditya Birla Sun Life Dividend Yield Fund435,1311.7828.93575,8882024-11-21-24.44%
WhiteOak Capital Flexi Cap Fund182,1880.2912.11575,8882024-11-21-68.36%
Aditya Birla Sun Life Manufacturing Equity Fund155,9790.8310.37575,8882024-11-21-72.92%
UTI India Consumer Fund118,0001.017.84575,8882024-11-21-79.51%
Bandhan Multi Asset Allocation Fund110,4190.417.34575,8882024-11-21-80.83%
WhiteOak Capital Mid Cap Fund103,4750.276.88575,8882024-11-21-82.03%
Mahindra Manulife Consumption Fund54,0000.953.59575,8882024-11-21-90.62%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)25.0019.3113.2516.0759.25
Diluted EPS (Rs.)25.0019.3113.2516.0759.25
Cash EPS (Rs.)26.7020.7514.4121.1965.94
Book Value[Excl.RevalReserv]/Share (Rs.)109.6588.7677.57351.19361.80
Book Value[Incl.RevalReserv]/Share (Rs.)109.6588.7677.57351.19361.80
Revenue From Operations / Share (Rs.)139.63126.4898.60245.62429.75
PBDIT / Share (Rs.)34.7327.9318.9928.9791.39
PBIT / Share (Rs.)33.0526.5217.8523.5484.70
PBT / Share (Rs.)32.3425.4817.1218.0177.56
Net Profit / Share (Rs.)25.0119.3413.2715.7659.26
NP After MI And SOA / Share (Rs.)25.0019.3113.2416.0759.25
PBDIT Margin (%)24.8722.0819.2611.7921.26
PBIT Margin (%)23.6620.9618.109.5819.71
PBT Margin (%)23.1520.1417.367.3318.04
Net Profit Margin (%)17.9115.2813.466.4113.79
NP After MI And SOA Margin (%)17.9015.2613.436.5413.78
Return on Networth / Equity (%)22.8021.7517.074.5716.37
Return on Capital Employeed (%)29.3229.1822.806.6022.89
Return On Assets (%)18.4014.5710.983.4011.47
Long Term Debt / Equity (X)0.000.000.000.010.01
Total Debt / Equity (X)0.000.090.160.110.20
Asset Turnover Ratio (%)1.040.990.910.490.82
Current Ratio (X)4.792.562.373.282.69
Quick Ratio (X)4.211.921.942.922.20
Inventory Turnover Ratio (X)1.251.472.331.332.25
Dividend Payout Ratio (NP) (%)15.9941.4245.29186.7264.13
Dividend Payout Ratio (CP) (%)14.9838.5941.70139.5257.63
Earning Retention Ratio (%)84.0158.5854.71-86.7235.87
Cash Earning Retention Ratio (%)85.0261.4158.30-39.5242.37
Interest Coverage Ratio (X)49.0926.9625.865.2412.78
Interest Coverage Ratio (Post Tax) (X)36.3619.6619.073.859.29
Enterprise Value (Cr.)3912.212454.701110.61954.23789.00
EV / Net Operating Revenue (X)4.553.151.833.151.49
EV / EBITDA (X)18.2814.269.4926.727.00
MarketCap / Net Operating Revenue (X)4.803.302.033.541.47
Retention Ratios (%)84.0058.5754.70-86.7235.86
Price / BV (X)6.114.712.582.481.74
Price / Net Operating Revenue (X)4.803.302.033.541.47
EarningsYield0.030.040.060.010.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kewal Kiran Clothing Ltd as of November 22, 2024 is: 724.46

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Kewal Kiran Clothing Ltd is Undervalued by 20.34% compared to the current share price 602.00

Intrinsic Value of Kewal Kiran Clothing Ltd as of November 22, 2024 is: 1,084.59

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Kewal Kiran Clothing Ltd is Undervalued by 80.16% compared to the current share price 602.00

Last 5 Year EPS CAGR: 49.71%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.58%, which is a positive sign.
  2. The company has higher reserves (412.15 cr) compared to borrowings (49.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (526.23 cr) and profit (114.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 75.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 186.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kewal Kiran Clothing Ltd:
    1. Net Profit Margin: 17.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.32% (Industry Average ROCE: 14.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.8% (Industry Average ROE: 16.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 36.36
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 4.21
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 23.2 (Industry average Stock P/E: 79.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Kewal Kiran Clothing Ltd. is a Public Limited Listed company incorporated on 30/01/1992 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L18101MH1992PLC065136 and registration number is 065136. Currently Company is involved in the business activities of Manufacture of wearing apparel, except fur apparel. Company’s Total Operating Revenue is Rs. 607.61 Cr. and Equity Capital is Rs. 61.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Retail - Apparel/Accessories460/7, Kewal Kiran Estate, I.B. Patel Road, Mumbai Maharashtra 400063info@kewalkiran.com
http://www.kewalkiran.com
Management
NamePosition Held
Mr. Kewalchand P JainChairman & Managing Director
Mr. Hemant P JainJoint Managing Director
Mr. Dinesh P JainWhole Time Director
Mr. Vikas P JainWhole Time Director
Mr. Paresh H ClerkIndependent Director
Ms. Ushma S SuleIndependent Director
Mr. Jayraj S ShethIndependent Director
Mr. Vivek K ShiralkarIndependent Director

FAQ

What is the latest intrinsic value of Kewal Kiran Clothing Ltd?

The latest intrinsic value of Kewal Kiran Clothing Ltd as on 21 November 2024 is ₹724.46, which is 20.34% higher than the current market price of ₹602.00.

What is the Market Cap of Kewal Kiran Clothing Ltd?

The Market Cap of Kewal Kiran Clothing Ltd is 3,726 Cr..

What is the current Stock Price of Kewal Kiran Clothing Ltd as on 21 November 2024?

The current stock price of Kewal Kiran Clothing Ltd as on 21 November 2024 is ₹602.

What is the High / Low of Kewal Kiran Clothing Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kewal Kiran Clothing Ltd stocks is 818/582.

What is the Stock P/E of Kewal Kiran Clothing Ltd?

The Stock P/E of Kewal Kiran Clothing Ltd is 23.2.

What is the Book Value of Kewal Kiran Clothing Ltd?

The Book Value of Kewal Kiran Clothing Ltd is 124.

What is the Dividend Yield of Kewal Kiran Clothing Ltd?

The Dividend Yield of Kewal Kiran Clothing Ltd is 0.33 %.

What is the ROCE of Kewal Kiran Clothing Ltd?

The ROCE of Kewal Kiran Clothing Ltd is 31.0 %.

What is the ROE of Kewal Kiran Clothing Ltd?

The ROE of Kewal Kiran Clothing Ltd is 25.1 %.

What is the Face Value of Kewal Kiran Clothing Ltd?

The Face Value of Kewal Kiran Clothing Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kewal Kiran Clothing Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE