Kewal Kiran Clothing Limited (KKCL) is a Mumbai-based garment manufacturing and retail company established in 1992. Catering to markets like Asia, the Middle East, and the CIS, KKCL has emerged as a hidden gem in the apparel industry, silently rewarding its investors with multibagger returns. Let’s delve into the company’s performance and see if it deserves a spot in your portfolio.
Analyzing the Daily Chart
A glance at the daily chart reveals a formidable uptrend, marked by higher highs and higher lows.
From trading at approximately 397 rupees per share in March 2023, the stock has surged to over 760 rupees, translating to a remarkable 90% return for investors in a short span. Delving deeper, the stock appears to be consolidating, and should the consolidation persist with the 8-day exponential moving average (EMA) crossing the 20-day EMA from below, astute investors might find opportune moments worth exploring.
Quarterly Results Showcase Financial Strength
The company’s quarterly results underscore its financial prowess. Year over year (YoY), the topline witnessed a substantial 15.97% surge, accompanied by an impressive 27.04% growth in profits. In comparison to the preceding quarter, revenue witnessed a remarkable 47.13% upswing, mirrored by a 47.36% surge in profits. Noteworthy is the uptick in operating income, marking an 86.45% quarterly increase and a commendable 23.39% YoY growth. The earnings per share (EPS) for Q2 FY24 stands at ₹8.06, reflecting a robust 27.13% YoY increase.
Expansive Distribution Network
Kewal Kiran Clothing’s strength lies in its diversified and expansive distribution network. Leveraging a multi-channel approach, the company reaches consumers through:
- Multi Brand Outlets (MBO): A network of 80+ distributors covering 4,000+ MBOs.
- K-lounge and Exclusive Brand Outlets: Comprising 219 stores and 136 stores, respectively, along with one Factory Outlet.
- National Chain Stores (NCS): Presence in prominent outlets like Shoppers Stop, Lifestyles, Max, and Reliance Trends.
- E-commerce Presence: Partnering with major online platforms such as Flipkart, Myntra, Tata Cliq, and Amazon.
- Overseas Exports: Tapping into global markets to further diversify its reach.
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