Up over 110% in 2 years, Religare bets on this multibagger stock for short-term
Shares of KPR Mills have zoomed as much as 118 per cent over the last two years and more than 400 per cent in last five years, according to BSE data. The multibagger stock, which was quoting around ₹309 in June 2021, has since been on a long-term uptrend since 2014.
KPR Mills achieved a new 52-week high of ₹680 and has recovered around 40 per cent from its 52-week low of ₹479. According to Religare Broking, KPR Mills witnesses more of a time-wise correction, which shows noticeable buying interest during the corrective phase.
‘’In line with past instances, it has trading with the corrective bias for the last one and a half years, after the phenomenal surge from 160 to a new record high of 769,” said the brokerage firm.
‘’It has recently witnessed a breakout from a consolidation range of 480-625 and is likely to retest the record high soon. We recommend creating fresh longs in the mentioned range,” added Religare Broking.
The brokerage recommends a ‘’buy” for KPR Mills with fresh long-positions in the range of ₹660-665 with a stop loss of ₹625 for a month at a target price of ₹740.
One of the largest vertically integrated, publicly traded companies, KPR Mill has a variety of business pursuits, including yarn, fabrics, garments, and white crystal sugar.
During the January-March quarter of fiscal 2022-23, KPR Mills reported a net income of ₹1958.03 crore, up by 33.99 per cent from ₹1461.33 crore in the year-ago period. The net profit reached ₹209.55 crore during the quarter under review, down by 4.65 per cent year-on-year from ₹219.78 crore during the year-ago quarter.
The company’s board recommended a 200 per cent final dividend for fiscal 2-22-23 (Rs.2/- per equity share of Re.1/- each) subject to the approval of the shareholders of the company.
In FY23 the company’s revenue was up by 27.26 per cent year-on-year to ₹6,248.20 crore from ₹4,909.70 crore and EBITDA was up by 2.36 per cent year-on-year to ₹1,336.71 crore from ₹1,305.93 crore in FY22.
On June 22, shares of KPR Mills settled 1.07 per cent higher at ₹675.70 apiece on the BSEM touching an intra day high of ₹679.90 during the session – just points away from its 52-week high of ₹680. The company commands a market capitalisation of ₹23,053.35 crore.
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Updated: 22 Jun 2023, 10:27 PM IST
