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What is the story about?
Shares of KPR Mill Ltd. gained 18% to hit a fresh 52-week high on Wednesday, June 24. This is its biggest single-day gain since October 13, 2008, when the stock had risen 20%.
The textile company snapped a three-day losing streak, before which it had surged 13.7% last week as well.
Brokerage firm Motilal Oswal on Tuesday initiated coverage a "neutral" rating on KPR Mills with a target price of ₹1,200 per share. The stock is trading 11% higher than this level on Wednesday.
It said the company is well-positioned from its leadership in the Indian textile and apparel industry, supported by the largest garmenting capacity among listed peers, followed by the sugar and ethanol business.
The brokerage has projected a revenue, earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted profit after tax (APAT) compound annual growth rate (CAGR) of 13%, 20% and 20%, respectively, over financial year 2026-2028.
Motilal Oswal values the company at an EV/EBITDA multiple of 22 times its estimated earnings for financial year 2028.
US trade representative Jamieson Greer is in India on a two-day visit leading the talks for the proposed bilateral trade agreement. Greer met India's commerce and industry minister Piyush Goyal
in New Delhi on Tuesday.
The trade negotiations have continued for over a year since the India-US Bilateral Trade Agreement process was launched in February last year.
Motilal Oswal in its note on textiles on Tuesday said moving forward, it expects export growth to recover supported by upcoming free trade agreements (FRAs) with the UK and EU, favourable tariff realignments and improving incentives such as Rebate of State and Central Taxes and Levies (RoSCTL).
It said the Centre has set a target to scale the textile market to $350 billion from $194 billion in FY26, implying a CAGR of 13%, driven by strong export growth and steady domestic demand.
Shares of KPR Mill surged another 18% on Wednesday to hit an intraday high of ₹1,334. The stock is off those highs but is trading with gains of 11% at ₹1,257. The stock is up 32% in the last one month and 38% so far for the year.
Also Read: Biocon shares gain after partner wins insulin contracts worth 225 million Ringgit in Malaysia
The textile company snapped a three-day losing streak, before which it had surged 13.7% last week as well.
Above Motilal Oswal's Target
Brokerage firm Motilal Oswal on Tuesday initiated coverage a "neutral" rating on KPR Mills with a target price of ₹1,200 per share. The stock is trading 11% higher than this level on Wednesday.
It said the company is well-positioned from its leadership in the Indian textile and apparel industry, supported by the largest garmenting capacity among listed peers, followed by the sugar and ethanol business.
The brokerage has projected a revenue, earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted profit after tax (APAT) compound annual growth rate (CAGR) of 13%, 20% and 20%, respectively, over financial year 2026-2028.
Motilal Oswal values the company at an EV/EBITDA multiple of 22 times its estimated earnings for financial year 2028.
India-US Trade Negotiations
US trade representative Jamieson Greer is in India on a two-day visit leading the talks for the proposed bilateral trade agreement. Greer met India's commerce and industry minister Piyush Goyal
The trade negotiations have continued for over a year since the India-US Bilateral Trade Agreement process was launched in February last year.
Motilal Oswal in its note on textiles on Tuesday said moving forward, it expects export growth to recover supported by upcoming free trade agreements (FRAs) with the UK and EU, favourable tariff realignments and improving incentives such as Rebate of State and Central Taxes and Levies (RoSCTL).
It said the Centre has set a target to scale the textile market to $350 billion from $194 billion in FY26, implying a CAGR of 13%, driven by strong export growth and steady domestic demand.
Shares of KPR Mill surged another 18% on Wednesday to hit an intraday high of ₹1,334. The stock is off those highs but is trading with gains of 11% at ₹1,257. The stock is up 32% in the last one month and 38% so far for the year.
Also Read: Biocon shares gain after partner wins insulin contracts worth 225 million Ringgit in Malaysia
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