K P R Mill Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for K P R Mill Ltd indicates a cautious stance for investors. This rating suggests that while the stock exhibits solid qualities, it may not offer significant upside potential relative to its current price and market conditions. Investors are advised to maintain their positions without aggressive buying or selling, awaiting clearer signals from the company’s future performance and market developments.

Quality Assessment: Strong Fundamentals Underpin Stability

As of 27 January 2026, K P R Mill Ltd demonstrates excellent quality metrics. The company boasts a robust long-term Return on Equity (ROE) averaging 21.04%, reflecting efficient capital utilisation and consistent profitability. Net sales have grown at an annualised rate of 16.46%, while operating profit has expanded at 19.11% per annum, underscoring healthy operational growth. Additionally, the company maintains a conservative capital structure with an average Debt to Equity ratio of just 0.04 times, indicating minimal reliance on debt financing and a strong balance sheet.

Valuation: Elevated Price Reflects Premium Expectations

Despite its strong fundamentals, K P R Mill Ltd is currently rated as very expensive in valuation terms. The stock trades at a Price to Book (P/B) ratio of 5.4, which is significantly higher than the sector average. This premium valuation is partly justified by the company’s solid ROE of 15.7% and steady profit growth, but it also implies that much of the company’s future growth prospects are already priced in. The Price/Earnings to Growth (PEG) ratio stands at 9.8, signalling that earnings growth expectations are high relative to the current share price. Investors should be mindful that such valuations may limit further upside unless the company delivers exceptional performance.

Financial Trend: Positive Momentum Amid Mixed Returns

The latest data as of 27 January 2026 shows that K P R Mill Ltd has delivered mixed returns over various time frames. The stock has recorded a modest 1.69% gain in the past day and a 6.47% increase over the past week. However, it has experienced declines over longer periods, including a 7.67% drop in the last month and an 18.48% fall over three months. Year-to-date, the stock is down 8.26%, and over the past year, it has declined by 1.91%. Despite these fluctuations, the company’s financial performance remains positive, with operating cash flow for the year reaching a record high of ₹1,401.32 crores and cash and cash equivalents at ₹12,111 crores as of the half-year mark. Quarterly profit after tax (PAT) also hit a peak of ₹218.03 crores, signalling operational strength.

Technical Outlook: Bearish Signals Temper Optimism

From a technical perspective, K P R Mill Ltd currently exhibits bearish trends. This technical grade suggests that the stock’s price momentum is weak, and investors may face downward pressure in the near term. Such a technical backdrop advises caution, especially for short-term traders, as the stock may encounter resistance levels that could limit gains. The combination of a bearish technical grade with a very expensive valuation supports the 'Hold' rating, indicating that investors should monitor price action closely before making new commitments.

Promoter Confidence and Market Position

Promoter confidence remains a positive factor for K P R Mill Ltd. As of the latest quarter, promoters have increased their stake by 1.21%, now holding 67.52% of the company. This rise in promoter holding is often interpreted as a sign of faith in the company’s future prospects. Furthermore, with a market capitalisation of approximately ₹29,088 crores, K P R Mill Ltd is the largest company in the Garments & Apparels sector, representing 14.14% of the sector’s total market cap. Its annual sales of ₹6,696.50 crores account for 4.17% of the industry, underscoring its significant market presence.

What the Hold Rating Means for Investors

For investors, the 'Hold' rating on K P R Mill Ltd suggests a balanced approach. The company’s excellent quality metrics and positive financial trends provide a solid foundation, but the very expensive valuation and bearish technical signals caution against aggressive accumulation at current levels. Investors already holding the stock may consider maintaining their positions while closely monitoring upcoming quarterly results and sector developments. New investors might prefer to wait for a more attractive entry point or clearer technical signals before initiating positions.

Sector Context and Comparative Positioning

Within the Garments & Apparels sector, K P R Mill Ltd stands out as a midcap leader with strong fundamentals. Its growth rates in sales and operating profit outpace many peers, and its low leverage enhances financial stability. However, the premium valuation relative to sector averages means that the stock’s price already reflects much of its growth potential. This dynamic is important for investors to consider when comparing K P R Mill Ltd to other sector stocks that may offer more attractive valuations or technical setups.

Summary of Key Metrics as of 27 January 2026

To summarise, the key financial and market metrics for K P R Mill Ltd are:

• Mojo Score: 50.0 (Hold)


• Market Capitalisation: ₹29,088 crores


• Return on Equity (ROE): 21.04% (long term average)


• Debt to Equity Ratio: 0.04 times (average)


• Price to Book Value: 5.4 (very expensive)


• PEG Ratio: 9.8


• Stock Returns: 1D +1.69%, 1W +6.47%, 1M -7.67%, 3M -18.48%, 6M -26.74%, YTD -8.26%, 1Y -1.91%


• Promoter Holding: 67.52%, increased by 1.21% last quarter

These figures highlight the company’s strong operational performance but also the challenges posed by valuation and market sentiment.

Looking Ahead

Investors should continue to watch K P R Mill Ltd’s quarterly earnings, cash flow generation, and sector trends closely. Any improvement in technical indicators or a moderation in valuation multiples could provide a catalyst for re-rating the stock. Meanwhile, the current 'Hold' rating reflects a prudent stance given the balance of strengths and risks.

Unlock special upgrade rates for a limited period. Start Saving Now →