KPR Mill, Gokaldas Exports - Strong, Sustainable Earnings Visibility Drives Re-Rating: ICICI Direct

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Textile stocks, in the past one year, have witnessed a significant re-rating with readymade garment exporters stocks like KPR Mill Ltd. and Gokaldas Exports Ltd. rallying six times since our initiation reports. A material improvement in financial performance (return on capital employed for KPR Mill improved 440 basis points to ~24% in FY21), deleveraging of balance sheet (debt-to-equity for Gokaldas Exports declined from 0.9 times to 0.5 times) and robust order book for the companies have been key triggers for the re-rating. We continue to like KPR Mill and Gokaldas Exprots to play the structural long term story in the apparel export space owing to their strong business models and long standing relationships with marquee global clients..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KPR Mill, Gokaldas Exports - Strong, Sustainable Earnings Visibility Drives Re-Rating: ICICI Direct

KPR Mill, Gokaldas Exports - Strong, Sustainable Earnings Visibility Drives Re-Rating: ICICI Direct

Choose a plan