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KPR Mill extends gains into sixth day, rallies 17% in one week

As per media reports, the US has imposed restrictions on the import of certain products such as cotton and apparels from the Xinjiang Autonomous Region in China

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KPR Mill | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

textile, arvind, manufacturing, msme, jobs
Among the emerging markets, India is quickly becoming a preferred destination for international apparel brands

Shares of were trading higher for the sixth straight day, up 5 per cent at Rs 669.75 on the BSE in intra-day trade on Thursday on expectation that the company is likely to benefit from shifting the source of garment import from China to India.

The stock of the textiles company has rallied 17 per cent in the past one week, as compared to 1 per cent rise in the S&P BSE Sensex. It was trading close to its 52-week high level of Rs 714.20 touched on January 9, 2020.

As per media reports, the US has imposed restrictions on import of certain products such as cotton and apparels from the Xinjiang Autonomous Region in China.

In the past six weeks, the market price of has zoomed 46 per cent after the company reported a improved operational performance. In April-June quarter (Q1FY21), the company's (earnings before interest, taxes, depreciation, and amortization) margin improved to 23.2 per cent from 20.2 per cent in a year ago quarter.

Among the emerging markets, India is quickly becoming a preferred destination for international brands. Global brands with deep pockets are making a beeline into the Indian market due to its stabilized economy, the management believes.

"With the outbreak started in China, initially, it was looking like an opportunity for Indian exporters. This was because European customers, who were traditionally sourcing from China, started discussions with Indian exporters for new orders. But ever since the Corona virus started spreading to Europe, things have turned upside down," said in 2019-20 annual report.

However, most countries are under lockdown, stores are shut due to restrictions by their governments and people don't go out and stay at home. The drop is mainly due to weak buying and many customers' going bankrupt or witnessing lower sales. According to an ICRA report, demand from the EU has remained weak and recent trends in US imports have also been discouraging, it adds.

At 11:10 am, KPR Mill was trading 2.4 per cent higher at Rs 655 on the BSE, as compared to 0.34 per cent decline in the S&P BSE Sensex. A combined 71,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.

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First Published: Thu, September 17 2020. 11:12 IST
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