NSEI:KKCL

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.

Snowflake

Fundamentals

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: KKCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

KKCL

-4.2%

IN Luxury

-0.6%

IN Market


1 Year Return

-25.0%

KKCL

3.7%

IN Luxury

5.0%

IN Market

Return vs Industry: KKCL underperformed the Indian Luxury industry which returned 3.7% over the past year.

Return vs Market: KKCL underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

KKCLIndustryMarket
7 Day0.8%-4.2%-0.6%
30 Day2.4%0.4%5.9%
90 Day-0.7%9.0%8.2%
1 Year-22.4%-25.0%4.5%3.7%7.0%5.0%
3 Year-37.7%-42.0%65.3%63.3%36.1%29.2%
5 Year-36.1%-42.8%103.2%96.6%38.6%25.8%

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?

15.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KKCL (₹993.35) is trading above our estimate of fair value (₹430.11)

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


Price To Earnings Ratio

PE vs Industry: KKCL is poor value based on its PE Ratio (15.5x) compared to the Luxury industry average (10.2x).

PE vs Market: KKCL is poor value based on its PE Ratio (15.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KKCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KKCL is overvalued based on its PB Ratio (2.7x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Kewal Kiran Clothing forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KKCL's earnings are forecast to decline over the next 3 years (-11.8% per year).

Earnings vs Market: KKCL's earnings are forecast to decline over the next 3 years (-11.8% per year).

High Growth Earnings: KKCL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KKCL's revenue (11.7% per year) is forecast to grow faster than the Indian market (11.2% per year).

High Growth Revenue: KKCL's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KKCL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

4.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: KKCL's current net profit margins (15.1%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: KKCL's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: KKCL's earnings growth over the past year (2.3%) is below its 5-year average (4.3% per year).

Earnings vs Industry: KKCL earnings growth over the past year (2.3%) underperformed the Luxury industry 6%.


Return on Equity

High ROE: KKCL's Return on Equity (17.2%) 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: KKCL's short term assets (₹3.9B) exceeds its short term liabilities (₹1.9B)

Long Term Liabilities: KKCL's short term assets (3.9B) exceeds its long term liabilities (101.7M)


Debt to Equity History and Analysis

Debt Level: KKCL's debt to equity ratio (20.4%) is considered satisfactory

Reducing Debt: KKCL's debt to equity ratio has increased from 4.2% to 20.4% over the past 5 years.

Debt Coverage: KKCL's debt is well covered by operating cash flow (24.6%).

Interest Coverage: KKCL's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: KKCL's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KKCL's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: KKCL's dividend (3.45%) is in the top 25% of dividend payers in the Indian market (2.36%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.3%), KKCL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Kewal Kiran Clothing's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Kewalchand Jain (57yo)

13.9yrs

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 ($USD111.34K) is below average for companies of similar size in the Indian market ($USD291.67K).

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


Management Age and Tenure

5.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: KKCL's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

14.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: KKCL's board of directors are seasoned and experienced ( 14 years average tenure).


Insider Trading

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.


Management Team

  • Hemant Jain (54yo)

    Whole Time Director

    • Tenure: 27.8yrs
    • Compensation: ₹7.99m
  • Abhijit Warange (41yo)

    VP of Legal

    • Tenure: 0yrs
    • Compensation: ₹3.58m
  • Vikas Jain (49yo)

    Head of Operations & Distribution and Whole Time Director

    • Tenure: 22.1yrs
    • Compensation: ₹7.99m
  • Dinesh Jain (50yo)

    Head of Manufacturing Operations & Whole Time Director

    • Tenure: 22.1yrs
    • Compensation: ₹7.99m
  • Kewalchand Jain (57yo)

    Chairman & MD

    • Tenure: 13.9yrs
    • Compensation: ₹7.99m
  • Ashish Barodia (46yo)

    Head Operations of Easies

    • Tenure: 5.6yrs
    • Compensation: ₹463.00k
  • Pankaj Jain (34yo)

    President of Retail Division

    • Tenure: 11.1yrs
  • Bhavin Sheth (43yo)

    CFO & Chief Investor Relations Officer

    • Tenure: 3.8yrs
    • Compensation: ₹5.50m
  • Sanjeev Chauhan (52yo)

    Head of Human Resource

    • Tenure: 5.5yrs
  • Lakhbir Singh (40yo)

    Brand Head - Killer

    • Tenure: 0yrs

Board Members

  • Prakash Mody (66yo)

    Non-Executive Independent Director

    • Tenure: 14yrs
    • Compensation: ₹240.00k
  • Hemant Jain (54yo)

    Whole Time Director

    • Tenure: 27.8yrs
    • Compensation: ₹7.99m
  • Nimish Pandya (66yo)

    Non-Executive Independent Director

    • Tenure: 14yrs
    • Compensation: ₹840.00k
  • Vikas Jain (49yo)

    Head of Operations & Distribution and Whole Time Director

    • Tenure: 22.1yrs
    • Compensation: ₹7.99m
  • Dinesh Jain (50yo)

    Head of Manufacturing Operations & Whole Time Director

    • Tenure: 22.1yrs
    • Compensation: ₹7.99m
  • Kewalchand Jain (57yo)

    Chairman & MD

    • Tenure: 13.9yrs
    • Compensation: ₹7.99m
  • Yogesh Thar (57yo)

    Non-Executive Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹780.00k
  • Drushti Desai (46yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹780.00k

Company Information

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


Key Information

  • Name: Kewal Kiran Clothing Limited
  • Ticker: KKCL
  • Exchange: NSEI
  • Founded: 1980
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹12.140b
  • 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 cas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:53
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.