IndiaNivesh Initiating Coverage Report On KPR Mills

At CMP of Rs 370, the KPR Mills stock trades at PE of 8x and 5.8x its FY15E and FY16E earnings of Rs 46.1 and Rs 64.1 per share respectively. We value the stock on SOTP basis taking into consideration its presence in unrelated business of textile and sugar. We value textile business at EV/EBITDA multiple of 4.7x its FY16E EBITDA and sugar business at EV/EBITDA multiple of 7.4x its FY16E EBITDA to arrive at target price of Rs 570 per share

Download KPR Mills Initiating Coverage Dec 2014 Report