Kewal Kiran Clothing’s stock has taken a significant hit, dropping 24% from its 52-week high on October 25, 2023. Over the past six months, the stock has fallen by 15.93%, and in just the last month, it has declined by 10.73%. Today, the stock opened at ₹636.80 per share on the BSE and dipped to an intraday low of ₹621.90.
Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, noted that Kewal Kiran’s stock has been under pressure for the last few weeks. However, it’s starting to show some signs of recovery from its key support level around ₹590 to ₹600. He advised that any upward movement could be an opportunity to exit long positions, with ₹660 as a resistance level.
Antique Stock Broking Lowers Target Price
Following the company’s underwhelming Q1FY25 performance, brokerage firm Antique Stock Broking has slightly lowered its target price for the stock from ₹1,013 to ₹993 but still maintains a ‘buy’ rating.
The company’s recent performance showed declines in sales, EBITDA, and PAT by 15%, 19%, and 23%, respectively. T-shirt sales remained flat, while jeans, shirts, and pants saw year-over-year declines of 16%, 23%, and 25%. A 19% drop in volume impacted overall revenue, though the average selling price (ASP) increased by 4.8%.
Despite some concerns about consumer demand, the firm remains optimistic about a recovery in the second half of FY25, expecting double-digit sales growth driven by a rebound in the rural market and the festive season.
Kewal Kiran Clothing plans to expand its Exclusive Brand Outlets (EBO) network by 50-60 stores in FY25, primarily using the FOFO (Franchise-Owned, Franchise-Operated) model. The company recently acquired a 50% stake in Kraus Jeans, which focuses on women’s denim and casual wear. This acquisition is expected to help Kewal Kiran broaden its product range in the women’s denim market.
For over 40 years, Kewal Kiran Clothing has been a leading player in branded garments in India, with well-known brands like Killer, Lawman Easies, Integriti, and Junior Killer. The company’s integrated operations in design, manufacturing, branding, and retailing have solidified its position in the market.
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