Kewal Kiran Q3 Review — Kraus Acquisition Drives Growth Amid Standalone Slowdown; Anand Rathi Retains 'Buy'

With production schedules streamlined, Kewal Kiran has guided to doubledigit revenue growth in Q4 and FY26. Ebitda margin to sustain at 18- 20%..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..Anand Rathi Report.Kewal Kiran Clothing Ltd.’s Q3 revenue grew 27.5% YoY on Kraus’ acquisition. Standalone sales growth was muted at 0.8% YoY. Some of the revenue loss was on Lawman brand’s discontinuation from multi brand outlet channel; the brand will focus on retail channel ahead. Kraus’ Q3 sales were Rs 534 million, and the Ebitda margin was 19.7%. Same-store sales growth (exclusive brand outlet) was ~14%. 57 (net) EBOs were added in Q3, with 27 Killer and 29 Lawman EBOs. In FY26, 50-60/40-50 EBOs for Killer/Lawman, respectively, would be added. Q3 ended with inventory at Rs 2.04 billion, in line with historical levels. Per management, with current inventory, it can deliver double-digit growth ahead. Total debt was Rs 1.1 billion and cash and cash equivalents at Rs 3 billion. With production schedules streamlined, the company has guided to doubledigit revenue growth in Q4 and FY26. Ebitda margin to sustain at 18- 20%. We lower our FY25e-27e revenue 4.7% each year, led by slower growth in the standalone business. Our Ebitda estimate is 7.9% lower on avg. each year. We retain our Buy, with a 12-mth target price of Rs 690 (earlier Rs 803), 15 times FY27e EV/Ebitda (16x FY27e EV/Ebitda)..Click on the attachment to read the full report:.Ashok Leyland Q3 Results Review: Anand Rathi Retains 'Buy' On The Stock, But Lowers Target Price — Here's Why.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.

Kewal Kiran Q3 Review — Kraus Acquisition Drives Growth Amid Standalone Slowdown; Anand Rathi Retains 'Buy'

The brokerage retains Buy rating, with a lower target price of Rs 690, 15 times FY27e EV/Ebitda.

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