Thursday, March 21, 2019

Hold Kewal Kiran Clothing; target of Rs 1415: Sharekhan


Sharekhan's research report on Kewal Kiran Clothing


Our meeting with the CFO of KKCL suggests that the company has taken adequate steps to revive revenue growth (including selling 1/4th garments on sale-or-return basis in north India and improving deliver time from manufacturing to availability of product on retail shelves). However the revival in the revenue growth will be gradual and is expected to remain in the range of 8-10% in the near term. The revamped strategies would not put any stress on OPM (likely to remain at 20%+) and Balance Sheet in the near term.


Outlook


We maintain Hold on the stock of KKCL with unchanged TP of Rs. 1,415 and advise long term investors to stay invested in the stock given its lean balance.


For all recommendations report, click here


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Read More First Published on Mar 20, 2019 04:11 pm

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