Kewal Kiran Clothing share price down 24% from 52-week high; can it fall further?

Since reaching a 52-week high record on October 25, 2023, Kewal Kiran Clothing share price has fallen by 24%. Over the past six months, the stock has down 15.93%, and in just one month, it has dropped 10.73%. Kewal Kiran Clothing share price today opened at an intraday high of ₹636.80 apiece on BSE, the stock touched an intraday low of ₹621.90 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, stated that Kewal Kiran Clothing share price has been under pressure since last couple of weeks however, from Wednesday its showing some signs of bounce from the key support of weekly 89ema, ₹590 - 600 remains a key support whereas ₹660 as resistance, ideally any bounce should be used to exit longs.

Antique Stock Broking cuts target price

After the company's 1QFY25 performance, Antique Stock Broking, a brokerage firm, has reduced its target price for the stock by almost 2% to ₹993 from ₹1,013 while still maintaining a 'buy' rating.

According to Antique Stock Broking's brokerage report, the company's performance was subpar, with declines in sales, EBITDA, and PAT of 15%, 19%, and 23%, respectively. T-shirts saw no change during the quarter, whereas jeans, shirts, and pants saw YoY declines of 16%, 23%, and 25%, respectively.

A 19% decline in volume had an effect on overall revenue performance, while ASP increased by 4.8%. The firm is optimistic about recovering in 2HFY25 and attaining double-digit sales growth with the rebound in the rural market and the festiveseason, despite the management pointing out some weakness in consumer demand.

“We expect Kewal Kiran Clothing to expand its Exclusive Brand Outlets (EBO) network by 50-60 stores in FY25, largely through the FOFO model. Kewal Kiran Clothing completed the acquisition of 50% stake in Kraus Jeans which caters to women's denim & casual wear category at 1.9x FY24 sales. We believe the acquisition would help Kewal Kiran Clothing to widen its product portfolio for women's denim wear. Post the 1QFY25 performance, we have cut our earnings per share (EPS) estimates by 2%-3% for FY25-27E,” the brokerage said.

The firm has led its success for more than 40 years, making it one of the biggest players in branded garments in India. Through its integrated activities, which include Design, Manufacturing, Branding, and Retailing, the Company has successfully penetrated its targeted customer base with its famous brands, including Junior Killer & Kraus, Killer, Intergiti, and Lawman Easies.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.