'Hold' KPR Mill Shares Says Systematix Citing Stable Performance, Steady Outlook Despite Global Uncertainties

For FY26, KPR Mill's management reiterated its guidance of 10-15% revenue growth in textiles, driven by 15-20% growth in garment volumes and ~20% Ebitda margin.The current export order book stands at ~Rs 15 billion (up 12% YoY) to be executed over the next six months..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.We present key takeaways from our meeting with the senior management of KPR Mill Ltd. Discussions focused on the demand environment across key export markets, progress on UK free trade agreement, implications of US tariffs, and outlook for the textiles and sugar sectors. Management cited Q1 FY26 as a routine quarter, which saw minimal disruption from tariffs, as the company had already executed nearly half of its US orders (~20% of exports) and shipped the balance with minor delays and at 2-5% discount, with no reported cancellations.The company has held back fresh US orders for the second half of the year. It intends to reassess intake during Oct-Nov 2025, once clarity emerges on tariffs. Europe (~60% of revenue) continues to provide stability, and the UK FTA is expected to gradually lift volumes, with the share of UK revenue expected to rise from ~20% to ~25% in the coming quarters. For FY26, management reiterated its guidance of 10-15% revenue growth in textiles, driven by 15-20% growth in garment volumes and ~20% Ebitda margin. The current export order book stands at ~Rs 15 billion (up 12% YoY) to be executed over the next six months. Management expects the current garment capacity to touch peak utilization in FY26, with expansion plans for FY27 under evaluation. The temporary removal of cotton import duty until Dec 2025 provides short-term relief, while yarn trends remain stable. Sugar crushing is set to commence during Q3, with both revenue and margins expected to improve YoY, supported by a favorable monsoon and higher cane availability.We expect muted garmenting volumes in FY27, given that any new green field capex takes at least 12-15 months to commence operations. The key strategic challenge lies in resolving the tension between its 10-15% volume growth target and its current full capacity utilization, making the final decision on expansion plans a critical catalyst for future performance. We have tweaked our revenue/Ebitda/PAT estimates by 1% each for FY26E and FY27E. Reiterating Hold with a revised SoTP-based target price of Rs 1,041 (earlier Rs 1,027), based on implied FY27E P/E of 28x and EV/Ebitda of 19x. We have assigned EV/EBIT of 25x to textiles and 12x to the sugar and ethanol business..Click on the attachment to read the full report:.VIP, Safari Industries Gets Motilal Oswal's 'Buy' Rating As It Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Hold' KPR Mill Shares Says Systematix Citing Stable Performance, Steady Outlook Despite Global Uncertainties

Despite recent US tariff issues, KPR Mill managed to execute nearly half its US orders with minor delays and 2–5% discounts, avoiding cancellations.

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