Kewal Kiran Clothing Ltd. share price target

KKCL reported healthy revenue growth of 13.6% YoY to | 126.2 crore despite a challenging market scenario in Q3FY20. The growth was mainly supported by volumes (up 16% YoY to 13.45 lakh pieces). Rejig in product mix (higher sales of tops compared to jeans) and spike in sales from nontraditional channel translated into a decline in realisations by 2.4% YoY to | 1008/piece. Growth was visible across all channels with multi brand outlets (MBOs) (39% of sales) and exclusive stores (15.8%) reporting growth of 10.3% and 25.4%, respectively. In recent times, KKCL has enhanced its focus on higher revenue growth. However, the same has weighed on its...

Revenue grew by 9.5% y-o-y, as volumes and realisations each rose ~4% and the core brand Killer clocked strong sales growth. However, gross margins plunged by 473 bps owing to a rise in cost of goods sold, higher discounts and trade margins. The management expects gross margins to stabilise in the coming quarters. Consumer demand is yet to recover, while primary sales (from company to trade-channels/retail partners) are affected by liquidity crisis. Hence, KKCL is expected to end FY2020 with high single-digit revenue growth. The company is organising trade fairs,...

grew by 11% y-o-y to Rs. 133.1 crore from Rs. 120 crore in Q4FY2019 (in-line with our estimates) led by a growth of 10.5% in the quantity of apparel sales. On the other hand, realization was flat at Rs. 910 per unit. The apparel sales quantity was at 13.8 lakh units as against 12.5 lakh units in Q4FY2018. Gross margins improved by 593 BPS because of a considerable reduction...

KKCL reported steady revenue growth of 10.9% YoY to YoY to | 133.1 crore. The topline growth was mainly derived through volume growth of 10.5% YoY to 13.8 lakh pieces. EBITDA margins declined by 120 bps YoY to 20.7% Higher cash discounts and rebates to dealers led to significant spike in selling & distribution expense (up 140% YoY to | 14.8 crore). However, enhanced bargaining power with fabric vendors (owing to higher volume commitments by NCS) resulted in lower input price. This translated into...

We met the management of Kewal Kiran Clothing to gain an insight into the company's business outlook. Kewal Kiran is one of India's leading branded apparel companies with popular home-grown brands like Killer, Integriti', Lawman' and Easies'. Though KKCL has a strong brand portfolio, revenue growth has remained sluggish over FY17-9MFY19 owing to the onslaught of discounting by e-commerce players. KKCL has shied away from discounting its brands, leading to slower revenue growth. However, the management is looking to revive revenue growth by introducing lower priced products as...

ICICI Securities Ltd | Retail Equity Research KKCL reported healthy revenue growth 17.7% YoY to | 111.1 crore (I-direct estimate: | 107.0 crore). The topline was mainly driven by volume growth of 21.8% YoY to 11.6 lakh pieces. The strong volume offtake was largely attributed to higher discounts provided in the...

KKCL reported topline de-growth of 9.1% YoY to | 152.3 crore (Idirect estimate: | 160.3 crore) with volumes declining 8.6% to 15.2 lakh pieces and flattish realisation growth at | 1000/ piece. KKCL has always refrained from giving heavy discounts. This, in turn, has impacted its volume offtake. Furthermore, sustained competition from e-commerce players (aggressive discounting) has severely impacted the revenue growth of the company Gross margins for the quarter (including manufacturing expense) improved 540 bps YoY to 54.1%. The significant margin expansion...

ICICI Securities Ltd | Retail Equity Research KKCL reported topline growth of 35% YoY to | 106 crore, albeit on a low base (revenues in Q1FY18 had declined 25% YoY). Higher sales were mainly driven by volume growth of 35% to 10.2 lakh pieces while realisation per garment remained flattish at | 1035 Gross margins for the quarter (including manufacturing expense) improved 410 bps YoY to 51%. Given the fixed cost nature of the business, strong volume growth for the quarter resulted in positive...

ICICI Securities Ltd | Retail Equity Research Revenues for the quarter declined marginally by 1.1% YoY to | 120.0 crore against our estimate of | 134.7 crore. The decline was mainly owing to a 3.1% drop in blended realisations to | 960/piece. Volumes for the quarter grew marginally by 2% YoY to 12.5 lakh pieces Tepid volume growth resulted in negative operating leverage, as employee, manufacturing and selling expenses as a percentage to sales increased 250 bps, 190 bps and 100 bps YoY, respectively....