Shares of a leading textile company fell sharply by 7 percent after reports surfaced that its promoters are likely to sell a 3.2 percent stake to raise around Rs.1,196 crores. The planned stake sale has triggered concerns among investors, leading to increased selling pressure in Tuesday’s trading session.
During Tuesday’s trading session, the shares of KPR Mill Ltd reached an intra-day low of Rs.1,143.00 per share, falling 7.09 percent from its previous close of Rs.1,230.30 each. Over the past five years, the shares have delivered over 1,300 percent returns.
Promoters Offloading
KPR Mill Ltd shares fell after three of its promoters planned to sell up to a 3.2 percent stake in the company through block deals, aiming to raise around Rs.1,195.6 crores, as reported by CNBC-TV18. The floor price for the transaction is set at Rs.1,107 per share, nearly 10 percent lower than the May 20 closing price of Rs.1,226.
Promoters KP Ramasamy, KPD Sigamani, and P Nataraj will participate in the stake sale, which involves 1.08 crore shares and is being facilitated by IIFL Finance. As of March 2025, each of these promoters held a 20.34 percent stake. Collectively, they owned just over 61 percent, while total promoter holding stood at 70.68 percent. After the sale, their combined holding is expected to fall to 57.82 percent.
Segment-Wise Manufacturing Capacity
KPR Mill Ltd operates six advanced spinning mills with a production capacity of 1,00,000 metric tonnes of yarn and 10,000 metric tonnes of vortex viscose yarn. Its four modern garment facilities can manufacture up to 177 million knitted garments annually. Additionally, the company runs two fabric processing units capable of handling 25,000 metric tonnes, along with a fabric printing facility that can print 15,000 metric tonnes of fabric.
In the sugar and ethanol segment, KPR Mill has a sugar crushing capacity of 20,000 TCD and an ethanol production capacity of 470 KLPD, both located in Karnataka. The company also emphasizes sustainable energy with 61.92 MW of wind power meeting around 40 percent of its textile power needs, supported by 90 MW co-generation and 38 MW rooftop solar power infrastructure.
Earnings Report
According to its latest financial results, KPR Mill Ltd reported consolidated revenue of Rs.1,769 crores in Q4 FY25, marking a 4.24 percent year-on-year increase from Rs.1,697 crores in Q4 FY24 and a 15.70 percent rise compared to Rs.1,529 crores in Q3 FY25.
The company’s net profit for Q4 FY25 stood at Rs.205 crores, showing a slight decline of 4.21 percent year-on-year from Rs.214 crores in Q4 FY24. On a sequential basis, however, it rose by 1.49 percent from Rs.202 crores in Q3 FY25.
The company has a Return on Capital Employed (ROCE) of 20.34 percent and a Return on Equity (ROE) of 16.3 percent. Its Price-to-Earnings (P/E) ratio stands at 51.58, higher than the industry average of 39.68. Furthermore, the company maintains a solid current ratio of 9.16, a debt-to-equity ratio of 0.09, and an Earnings Per Share (EPS) of Rs.23.85.
Shareholding Pattern
As of the March 2025 shareholding pattern, promoters hold a 70.68 percent stake in KPR Mill Ltd, with Foreign Institutional Investors (FIIs) holding 6.25 percent, Domestic Institutional Investors (DIIs) at 16.47 percent, and retail investors owning 6.57 percent.
Written by – Siddesh S Raskar
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