Kewal Kiran Clothing Limited (KKCL) AI Stock Analysis

• Market Cap: ₹28.36B
• Dividend Yield: 0.41%
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.93
• Revenue Growth: 28.67%
• EPS Growth: -20.77%
• Country: IN
• Employees: 1,919
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 7.30
• Shares Outstanding: 61,625,183
• 10 Day Avg. Volume: 3,171
• 30 Day Avg. Volume: 3,502
• PEG Ratio: -3.15
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -40.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹497.00 ▲(2.66% Upside)

Kewal Kiran Clothing Limited's overall stock score is primarily driven by its strong financial performance, despite some cash flow challenges. The technical analysis indicates bearish momentum, which negatively impacts the score. The valuation suggests moderate pricing, but the low dividend yield limits its attractiveness to income-focused investors.

Positive Factors

Revenue Growth

Sustained high revenue growth near 29% indicates expanding brand acceptance and distribution reach in India. Over a multi-month horizon this supports scale advantages, better product mix leverage and the ability to invest in brand-building and retail expansion while preserving core sales momentum.

Low Leverage / Strong Equity Base

A low debt-to-equity ratio and a strong equity ratio provide durable financial flexibility. This capital structure reduces bankruptcy risk, allows funding of capex or working capital from internal or modest external sources, and supports resilience through apparel industry seasonality.

Robust Profitability Margins

Healthy gross and EBITDA margins and a near-15% net margin point to durable pricing power and operational efficiency in the branded apparel segment. Strong margins underpin cash generation potential, enable reinvestment in brands and retail, and buffer the business against competitive pressure.

Negative Factors

Negative Free Cash Flow

Negative free cash flow driven by elevated capex is a structural concern if it persists. Even with profits, continued cash outflows can force reliance on external financing, constrain dividend or buyback capacity, and limit flexibility to fund marketing or inventory ahead of peak seasons.

Weak Cash Conversion

Low conversion of net income into operating cash reduces financial resilience. For a seasonal retail apparel business, weak cash conversion can amplify working-capital stress at peak inventory points, increasing the need for short-term funding and raising execution risk over the medium term.

Earnings and EPS Pressure

A meaningful decline in EPS and a dip in net income signal margin or cost pressure despite revenue growth. If structural (higher input, distribution or opex) it can compress shareholder returns and limit reinvestment options, requiring sustained management focus to restore profit per share.

Kewal Kiran Clothing Limited Business Overview & Revenue Model

Company Description

Kewal Kiran Clothing Limited manufactures, markets, and retails branded readymade garments and finished accessories in Asia, the Middle East, and the Commonwealth of Independent States. It offers casual and semi-formal for men and women; jeans, trousers, shirts, T-shirts, jackets, and pullovers; skirts, capris, shorts, dresses, tops, and tunics; and accessories, such as deodorants, watches, wallets, belts, and undergarments. The company distributes its products primarily under the Killer, Easies, LawmanPg3, Integriti, Addictions, and Desi Belle brand names through company-owned and operated, franchisee owned and operated, factory outlets, multi-brand outlets, and national chain stores, as well as e-commerce channels. It operates 219 K-Lounge, 136 exclusive brand outlets, and 1 factory outlet. Kewal Kiran Clothing Limited was founded in 1980 and is headquartered in Mumbai, India.

How the Company Makes Money

KKCL generates revenue through multiple channels, primarily by selling its branded apparel through a vast network of retail outlets, including exclusive brand stores and multi-brand outlets. The company also engages in online sales through various e-commerce platforms, expanding its reach to a broader audience. Key revenue streams include wholesale distribution, retail sales, and franchise operations. Furthermore, KKCL benefits from strategic partnerships with various retailers and distributors, enhancing its market penetration and brand visibility. The company capitalizes on seasonal fashion trends and promotional campaigns to drive sales, which are critical to its overall earnings.

Kewal Kiran Clothing Limited Financial Statement Overview

Summary

Kewal Kiran Clothing Limited exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects a low-risk profile with minimal debt, although cash flow challenges due to increased capital expenditures and a recent dip in net income growth require careful management.

Income Statement

Kewal Kiran Clothing Limited has demonstrated strong revenue growth over the years, with a significant increase from 2024 to 2025. The gross profit margin and net profit margin show robust profitability, with the latest net profit margin at approximately 14.9%. The EBIT and EBITDA margins also indicate efficient operations. However, a slight decline in net income from 2024 to 2025 suggests potential challenges in cost management.

Balance Sheet

The company maintains a solid financial position, with a debt-to-equity ratio of 0.20 indicating low leverage. The equity ratio stands at approximately 57.5%, showing a strong equity base relative to total assets. Return on equity is healthy, reflecting effective use of shareholders' funds, although the increase in debt from 2024 to 2025 requires monitoring.

Cash Flow

The cash flow position shows some concerns with a negative free cash flow in 2025, primarily due to high capital expenditures. The operating cash flow to net income ratio is low, suggesting less cash generation from operations relative to net income. This could affect long-term liquidity if not addressed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.85B	9.98B	8.60B	7.74B	6.05B	3.03B
Gross Profit	3.99B	4.17B	3.69B	3.25B	2.46B	1.21B
EBITDA	2.52B	1.91B	2.14B	1.72B	1.01B	356.79M
Net Income	1.55B	1.49B	1.54B	1.19B	816.28M	198.02M
Balance Sheet
Total Assets	14.78B	14.26B	8.37B	8.17B	7.43B	5.82B
Cash, Cash Equivalents and Short-Term Investments	3.19B	2.79B	3.72B	2.97B	3.15B	2.76B
Total Debt	1.74B	1.64B	197.04M	659.83M	818.77M	498.58M
Total Liabilities	4.67B	4.35B	1.61B	2.70B	2.65B	1.49B
Stockholders Equity	8.39B	8.20B	6.76B	5.47B	4.78B	4.33B
Cash Flow
Free Cash Flow	0.00	-715.50M	1.26B	510.71M	463.77M	936.83M
Operating Cash Flow	0.00	136.50M	1.36B	750.77M	568.68M	967.07M
Investing Cash Flow	0.00	-1.84B	-99.80M	-178.69M	-20.63M	762.90M
Financing Cash Flow	0.00	-198.40M	-663.93M	-524.12M	-120.53M	-852.11M

Kewal Kiran Clothing Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 484.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KKCL, the sentiment is Negative. The current price of 484.1 is above the 20-day moving average (MA) of 467.75, above the 50-day MA of 483.35, and below the 200-day MA of 506.03, indicating a bearish trend. The MACD of -7.20 indicates Positive momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KKCL.

Kewal Kiran Clothing Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANTABIL	70 Outperform	₹24.42B	31.17	―	0.39%	19.90%	27.94%
SPAL	67 Neutral	₹16.89B	15.29	―	0.28%	34.25%	28.44%
KKCL	66 Neutral	₹28.36B	21.83	―	0.41%	28.67%	-20.77%
SIYSIL	62 Neutral	₹23.69B	11.55	―	1.89%	16.27%	8.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹34.12B	36.55	―	0.27%	20.41%	-6.50%