BSE:532732

Stock Analysis Report

Executive Summary

Kewal Kiran Clothing Limited designs, manufactures, markets, and retails a range of apparel products for men and women in Asia, in the Middle East, and the Commonwealth of Independent States.

Rewards

Earnings are forecast to grow 11.78% per year

Risk Analysis

High level of non-cash earnings

Dividend of 3.44% is not well covered by earnings



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Kewal Kiran Clothing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532732 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

532732

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-16.8%

532732

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 532732 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 532732 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532732IndustryMarket
7 Day-0.1%-0.5%-1.5%
30 Day-0.7%3.0%-2.7%
90 Day2.8%9.2%1.3%
1 Year-13.3%-16.8%19.0%18.2%12.7%10.7%
3 Year-39.2%-43.9%52.2%48.8%22.0%15.1%
5 Year-36.3%-43.6%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Kewal Kiran Clothing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kewal Kiran Clothing undervalued compared to its fair value and its price relative to the market?

15.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532732 (₹987.05) is trading above our estimate of fair value (₹888.02)

Significantly Below Fair Value: 532732 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532732 is poor value based on its PE Ratio (15.7x) compared to the Luxury industry average (11.1x).

PE vs Market: 532732 is poor value based on its PE Ratio (15.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532732 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 532732 is overvalued based on its PB Ratio (2.7x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Kewal Kiran Clothing forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532732's forecast earnings growth (11.8% per year) is above the savings rate (6.5%).

Earnings vs Market: 532732's earnings (11.8% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 532732's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532732's revenue (8.1% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 532732's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532732's Return on Equity is forecast to be high in 3 years time (21.2%)


Next Steps

Past Performance

How has Kewal Kiran Clothing performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532732 has a high level of non-cash earnings.

Growing Profit Margin: 532732's current net profit margins (14.4%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: 532732's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 532732's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532732 had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).


Return on Equity

High ROE: 532732's Return on Equity (17.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kewal Kiran Clothing's financial position?


Financial Position Analysis

Short Term Liabilities: 532732's short term assets (₹5.0B) exceed its short term liabilities (₹2.0B).

Long Term Liabilities: 532732's short term assets (₹5.0B) exceed its long term liabilities (₹105.9M).


Debt to Equity History and Analysis

Debt Level: 532732's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: 532732's debt to equity ratio has increased from 2.4% to 19.3% over the past 5 years.

Debt Coverage: 532732's debt is well covered by operating cash flow (26.3%).

Interest Coverage: 532732's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: 532732 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532732's debt is covered by short term assets (assets are 5.7x debt).


Next Steps

Dividend

What is Kewal Kiran Clothing's current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: 532732's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532732's dividend (3.44%) is in the top 25% of dividend payers in the Indian market (2.55%)


Stability and Growth of Payments

Stable Dividend: 532732's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532732's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.5%), 532732's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532732's dividends in 3 years are not forecast to be well covered by earnings (93.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Kewalchand Jain (57yo)

14.2yrs

Tenure

₹7,989,600

Compensation

Mr. Kewalchand Pukhraj Jain has been the Chairman of the Board and Managing Director at Kewal Kiran Clothing Limited since December 3, 2005. Mr. Jain heads the finance functions of Kewal Kiran and is respo ...


CEO Compensation Analysis

Compensation vs Market: Kewalchand's total compensation ($USD111.97K) is below average for companies of similar size in the Indian market ($USD298.20K).

Compensation vs Earnings: Kewalchand's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kewalchand Jain
Chairman & MD14.2yrs₹7.99m5.86% 714.7m
Bhavin Sheth
CFO & Chief Investor Relations Officer4yrs₹5.50mno data
Vikas Jain
Head of Operations & Distribution and Whole Time Director22.3yrs₹7.99m6.12% 745.5m
Abhijit Warange
VP of Legal0yrs₹3.58mno data
Hemant Jain
Whole Time Director28.1yrs₹7.99m5.87% 716.0m
Dinesh Jain
Head of Manufacturing Operations & Whole Time Director22.3yrs₹7.99m6.18% 753.5m
Sanjeev Chauhan
Head of Human Resource5.8yrsno datano data
Ashish Barodia
Head Operations of Easies5.8yrs₹463.00kno data
Pankaj Jain
President of Retail Division11.3yrsno data0.13% 15.8m
Lakhbir Singh
Brand Head - Killer0yrsno datano data

5.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 532732's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kewalchand Jain
Chairman & MD14.2yrs₹7.99m5.86% 714.7m
Vikas Jain
Head of Operations & Distribution and Whole Time Director22.3yrs₹7.99m6.12% 745.5m
Hemant Jain
Whole Time Director28.1yrs₹7.99m5.87% 716.0m
Dinesh Jain
Head of Manufacturing Operations & Whole Time Director22.3yrs₹7.99m6.18% 753.5m
Prakash Mody
Non-Executive Independent Director14.3yrs₹240.00k0.0027% 332.8k
Nimish Pandya
Non-Executive Independent Director14.3yrs₹840.00kno data
Yogesh Thar
Non-Executive Independent Director7yrs₹780.00kno data
Drushti Desai
Non-Executive Independent Director5.6yrs₹780.00kno data

14.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 532732's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kewal Kiran Clothing Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kewal Kiran Clothing Limited
  • Ticker: 532732
  • Exchange: BSE
  • Founded: 1980
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹12.189b
  • Shares outstanding: 12.33m
  • Website: https://www.kewalkiran.com

Number of Employees


Location

  • Kewal Kiran Clothing Limited
  • Kewal Kiran Estate
  • 460/7, I. B. Patel Road
  • Mumbai
  • Maharashtra
  • 400063
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532732BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2006
KKCLNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2006

Biography

Kewal Kiran Clothing Limited designs, manufactures, markets, and retails a range of apparel products for men and women in Asia, in the Middle East, and the Commonwealth of Independent States. It offers casual, formal, and semi-formal wear; jeans, trousers, shirts, and T-shirts; Indo-Western womenswear; and lifestyle products, such as deodorants, watches, wallets, belts, and inner wear. The company distributes its products primarily under the Killer, Desi Belle, Lawman Pg3, Integriti, Easies, and Addictions brands through K-Lounge stores, multi-brand outlets, exclusive brand outlets, and national chain stores, as well as e-commerce channels. It operates 322 K-Lounge stores. The company was founded in 1980 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:54
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.