Kewal Kiran Clothing shares zoom 10% post-Q2 nos; what should you do?
At around 10:00 a.m., shares of the apparel manufacturer traded 5.9 per cent higher on the BSE at Rs 767.05 apiece. The market capitalisation of the company at around the same time stood at Rs 4,726.96 crore.
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Shares of Kewal Kiran Clothing (NSE: KKCL) jumped over 10 per cent on Wednesday, October 25, touching the day's high of Rs 797.45 apiece on the BSE after snapping a three-day losing streak. The uptrend in the stock came after the company reported an encouraging set of numbers for the September quarter (Q2FY24).
At around 10:00 a.m., shares of the apparel manufacturer traded 5.9 per cent higher on the BSE at Rs 767.05 apiece. The market capitalisation of the company at around the same time stood at Rs 4,726.96 crore.
The Mumbai-based company posted a consolidated profit after tax (PAT) of Rs 49.7 crore against Rs 39.1 crore a year ago. For the quarter ending September, Kewal Kiran Clothing logged a revenue of Rs 262.5 crore against Rs 226.3 crore, up 16 per cent.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 61.7 crore against Rs 50 crore, up 23.4 per cent a year ago. The margin of the company came in at 23.5 per cent as against 22.1 per cent in the corresponding quarter of the previous fiscal.
Analysts' views
The stock has breached the target price of Rs 735 apiece given by Zee Business Senior Research Analyst Kushal Gupta .
ICICI Securities has maintained a 'buy' call on the stock for the target price of Rs 830 apiece, which translates to an upside of 14.6 per cent from Monday's closing.
The brokerage believes that the company is well positioned to capitalise on its strengths of backward integration and healthy working capital management, including faster payments to vendors compared to peers.
Brokerage firm Antique has initiated a 'buy' call on the stock with a target price of Rs 805 apiece, which implies an upside of 11.1 per cent from Monday's closing.
"KKCL has built a robust business model with consistent double-digit margins, a healthy balance sheet/ cash generation, and strong return metrics," the brokerage said.
Kewal Kiran Clothing share price: Past performance
In 2023, so far, the stock has gained over 50 per cent outperforming the headline index's rise of over 6 per cent.
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