Kewal Kiran

This less known stock, Kewal Kiran Clothing, which makes apparels and lifestyle accessories owns brands like Killer, LawmanPg3, Integriti and Easies. The Rs.10 face value stock has low floating stocks – promoters hold 74.21%, FIIs hold 11.73% and DIIs hold 6.84%, leaving just 7.22% stake in the public. Its market cap stands at Rs.1369 crore.

The company had an exuberant Q2 performance and compared to that Q3 pales, though YoY, the numbers look better. It clocked a net sales at Rs.86 crore, up 12% (YoY) but down 26% QoQ. A significant jump in operating costs, especially cost on selling and distribution plus lower other income pulled down the net profit, which came in at Rs.11 crore, down 8% (YoY) and QoQ, it was down by a whopping 52%. The company has ended 9MFY14 with a net profit at Rs.46 crore v/s net profit of Rs.53 crore for FY13. Clearly, with one more quarter to go, if it manages to up its tempo in Q4, it is sure to end current fiscal on a very high note.  Its debt is pretty insignificant as can be seen from the interest outgo per quarter, which is less than one crore.