Shares of this apparel stock surged by nearly 10 percent on Monday following the company’s impressive 156 percent QoQ rise in net profit and robust revenue growth in its latest quarterly results.
Share Price Movement
The share price of Kewal Kiran Clothing Ltd increased by 10.3 percent during Monday’s trading session, reaching an intra-day high of Rs.657.90 per share, up from the previous close of Rs.596.65 apiece. However, the shares have since declined and are now trading at Rs.648.90 each.
What Happened
Such a bullish movement in the stock price was an outcome of an increase in revenue and net profits of the company in the recent quarter.
According to its recent filing, in the quarter ending September 2024, Kewal Kiran Clothing Ltd reported a 18 percent increase in revenue to Rs.308 crore compared to Rs.262 crore in Q2 FY24 but on a quarter-over-quarter basis, the company saw a significant increase of 103 percent from Rs.151 crore in Q1 FY25.
In the same period, the company has reported a significant increase in net profit of 36 percent to Rs.68 crore in Q2 FY25, up from Rs.50 crore Q2 FY25 and staggering 172 percent from Rs.25 crores in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 31.0 percent, while return on equity (ROE) is at 25.1 percent. The company has a strong current ratio of 2.67 and a low debt-to-equity ratio of 0.11.
Brand Portfolio
KKCL features a diverse portfolio of in-house brands that cater to various consumer segments. Killer serves as the flagship brand targeting the premium luxury market, while Integriti focuses on the premium mass market.
LawmanPg3 is known for its fashionable party wear, and Easies is positioned in the premium mid-market segment. The recently launched Junior Killer caters to children’s apparel, and Desi Belle is dedicated to women’s clothing.
Manufacturing Facility
KKCL has several manufacturing facilities across India, primarily situated in Mumbai, Vapi (Gujarat), and Daman. The company prioritises quality, operating ISO 9000 certified production units that leverage advanced technology to produce over 3 million apparel pieces each year.
Company Profile
Kewal Kiran Clothing Limited (KKCL) is a prominent player in the Indian apparel industry, known for its extensive portfolio of fashion brands. Headquartered in Mumbai, KKCL has evolved into one of the largest branded apparel manufacturers in India, catering to both domestic and international markets, including Asia and the Middle East.
Written by – Siddesh S Raskar
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