Basant Ji:
I would like to open a thread on Kewal Kiran Clothing as below:
"KILLER-NARI sets the temperature Soaring !"
I was impressed by a full-page advert on Bangalore times (26/09/2010) featuring latest bollywood bombshell Sonakshi Sinha (Dabangg fame) with above heading.
So, I digged the net to find who is behind this "KILLER" brand and found that it is KEWAL KIRAN CLOTHING LTD. (KKCL). Apart from Killer they have other successful brands Viz Lawman pg3, Integrity, Easies etc, all catering to the urban youth.
Then, I went into BSE to check:
Financials.... 2010 ..... 2009 ..... 2008
-----------------------------------------
Net Sales... 176.05 ... 145.09 ... 159.60
Op Profit.... 56.91 .... 28.46 .... 39.15
Net Profit... 32.51 .... 14.25 .... 21.10
Some other performance analysis are
EPS: 28.45
PE: 14 (@ CMP of 400)
M-Cap: 485 Cr
BV: 142.08
RoCE: 26.74%
Only other company I can think of comparing is Provogue, which is trading at a PE of around 25 and M-cap of 725 cr.
I also digged out Annual Report and somewhat Impressed with whatever I could get out of it. With my limited knowledge, I can list following points:
Growth in Sales of 21%; EBIDTA of 122%; and PAT of 128%. Cash surplus of Rs. 116.69 Cr at year end.
The company regularly participates in fashion shows such as Lakme Fashion Week to promot its brands in association with Mr. Naredra Kumar, a famous fashion designer.
KKCL has established presence in Metros and Tier I cities, it is also penetrating into Tier II and Tier III cities.
Brands
Killer - Flagship brand - Denim/jeans wear - recorded a growth of 22% accounted for 52% of sales.
Integrity - Youngest brand - casual wear - recorded a growth of 27% accounted for 23% of sales.
Lawman Pg3 - Club wear brand - recorded growth of 25% accounted for 22% of sales.
KKCL sells its brands thru Exclusive brand outlets Viz K - Lounge stores as well as multi brand outlets and large format stores.
KKCL has diversified geographical mix of sales across India.
KKCL has introduced "first of its kind" Y-Fi stitching technique and has Patented this under the patent act.
I also tried to search for any corporate governance issues/frauds on the net and could find none.
Guys, as a newbie, this is my first thread and would be grateful if seniors could dig deep into annual report of the company and suggest if KKCL is worth considering for long-term investment.
Thanks
Basant Ji, I am not sure if this topic deserves a new thread or a direct entry into dust bin
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