How Did KPR Mill Begin Its Journey?
Founded in 1984 and headquartered in Coimbatore, KPR Mill Ltd has grown from a small textile manufacturer into one of India’s most vertically integrated textile conglomerates. With operations spanning yarn, knitted fabric, garment manufacturing, and even sugar and ethanol production, the company has established a strong footprint both domestically and internationally.
Listed on the NSE and BSE since 2007, KPR Mill has steadily expanded its operations and market reach, serving leading global apparel brands.
What Are the Core Businesses of KPR Mill?
KPR Mill’s business is divided into three main segments:
- Textiles: It produces 1,00,000 MT of yarn annually and manufactures over 157 million garments per year.
- Sugar & Ethanol: Operates a 10,000 TCD sugar plant and a 90 KLPD ethanol plant.
- Renewable Energy: Owns wind mills and solar power projects to sustainably power its facilities.
Its fully integrated operations, from spinning to garmenting, give it cost efficiencies and supply chain control that few in the industry can match.
Who Are the Company’s Clients and Where Does It Export?
KPR Mill caters to reputed global clients including H&M, Marks & Spencer, and Primark. It exports to more than 60 countries with a focus on Europe and the US. This strong export orientation shields the company from domestic consumption volatility.
What Is the Financial Health of KPR Mill in 2025?
As of May 2025, the company’s financial snapshot is:
| Metric | Value (FY25) |
|---|---|
| Market Cap | ₹39,290 Cr |
| CMP | ₹1,149 |
| P/E Ratio | 48.2 |
| Book Value | ₹146 |
| Net Profit (Quarterly) | ₹204.55 Cr |
| Quarterly Profit Change | -4.24% |
| Quarterly Sales | ₹1,768.98 Cr |
| Quarterly Sales Growth | 4.26% |
| ROCE | 20.3% |
| ROE | 17.4% |
| Dividend Yield | 0.43% |
| 52 Week High / Low | ₹1,395 / ₹743 |
Compared to peers:
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | Div. Yield % | NP Qtr (₹ Cr) | Qtr Profit Var % | Sales Qtr (₹ Cr) | Qtr Sales Var % | ROCE % |
|---|---|---|---|---|---|---|---|---|---|
| Page Industries | 46395.00 | 76.85 | 51748.39 | 1.50 | 204.66 | 34.34 | 1313.05 | 7.14 | 45.02 |
| KPR Mill Ltd | 1149.00 | 48.2 | 39290.00 | 0.43 | 204.55 | -4.24 | 1768.98 | 4.26 | 20.3 |
| Vedant Fashions | 735.70 | 45.98 | 17873.39 | 1.17 | 101.11 | -12.68 | 367.44 | 1.18 | 26.66 |
| Gokaldas Exports | 1010.95 | 48.16 | 7224.92 | 0.00 | 50.34 | 65.48 | 987.77 | 79.08 | 10.76 |
| Pearl Global Ind | 1134.15 | 24.30 | 5209.73 | 0.78 | 48.24 | 43.06 | 1022.53 | 45.25 | 21.39 |
| Kitex Garments | 251.70 | 40.58 | 5021.43 | 0.20 | 40.51 | 170.61 | 276.32 | 68.35 | 6.92 |
| Kewal Kiran Clothing | 463.90 | 20.30 | 2858.78 | 0.44 | 27.96 | -25.62 | 234.19 | 6.73 | 23.54 |
KPR Mill remains among the top two players by market cap and quarterly earnings, although its Q4FY25 profit declined slightly. It ranks in the mid-range on ROCE, behind Page and Vedant, but ahead of most others on profitability and size.
What’s New with KPR Mill?
- Q4 FY25 Net Profit: ₹204.6 Cr, a 4% YoY dip (CapitalMarket)
- Brand Focus: Domestic expansion of its in-house fashion brand ‘FASO’ is a key growth initiative.
- Capex Plans: New investments in garment manufacturing and ethanol production to increase capacity.
How Is the Textile Sector Positioned in 2025?
The Indian textile sector is projected to reach $350 billion by 2030 (Fibre2Fashion). With tailwinds like:
- India-UK FTA reducing tariffs
- Retailers like Walmart diversifying sourcing away from China (Reuters)
- Union Budget 2025 support for textile infrastructure (InvestIndia)
KPR Mill is strategically positioned to benefit from both global and domestic textile growth.
What Are Analysts Saying?
According to AlphaSpread, the average 1-year price target is ₹1,021.17, suggesting some correction may be expected from the current price of ₹1,149. The recommendation consensus stands at ‘Hold’ (AlphaSpread).
What Are KPR Mill’s Strengths?
- Vertically integrated operations from cotton to clothing
- Low debt and healthy profitability
- Global client base with repeat business
- Focus on green energy and sustainability
What Could Be the Risks for Investors?
- Recent margin compression due to input cost pressures
- Trading at a high valuation vs peers (P/B Ratio ~7.8 using Book Value ₹146)
- Sensitive to export incentives and FX rates
- A 4% YoY profit dip despite revenue growth
Who Should Track KPR Mill?
Suitable for:
- Investors seeking exposure to export-oriented manufacturing
- Those looking for companies with ESG focus and low leverage
- Investors interested in sustainable business models
Unsuitable for:
- Those focused on deep value or high dividend yields
- Investors avoiding stocks with international exposure risk
What’s the Road Ahead for KPR Mill?
KPR Mill is doubling down on:
- Brand building: FASO is being positioned for urban retail growth
- Ethanol production: As part of the biofuel push, this diversifies revenues
- Automation and tech adoption: For efficiency gains across plants
Combined with India’s growing role as a textile supplier, KPR Mill’s future remains intertwined with both global demand and its ability to scale operations efficiently.
Final Word
KPR Mill presents a robust case of a legacy company adapting to the demands of modern manufacturing, sustainability, and global competitiveness. The numbers tell a story of operational prudence, while its strategic moves indicate preparedness for the next decade. Investors should weigh its strengths and cyclicality before forming any decision.
This blog is purely for informational purposes and does not constitute investment advice.
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