This small-cap textile stock delivered amazing returns of over 400% in three years; do you hold it?

Kewal Kiran Clothing Limited has delivered multibagger returns to its shareholders in the past year. During this period, the company’s share price surged from Rs 146.51 on October 30, 2020, to Rs 782.50 on October 25, 2023, representing an increase of over 400% in a three-year holding period.

An investment of Rs 1 lakh in this company’s shares one year ago would have grown to Rs 5 lakh today.

Kewal Kiran Clothing has reported a strong second quarter for FY24, with net sales growth of 16.97% to Rs 262.48 crore, compared to Rs 226.34 crore in the same quarter last year. The operating profit also experienced a significant increase of 25.07%. The net profit for the quarter increased by 26.99% to Rs 49.69 crore, compared to the previous year’s same quarter.

Kewal Kiran Clothing Limited was incorporated in 1992. The company is engaged in manufacturing, marketing, and retailing of branded readymade garments and finished accessories. The company has consumers in Asia, the Middle East, and CIS (Commonwealth of Independent States). Its registered office is in Mumbai. The company’s flagship brand, Killer (contributing 55-60% to the revenue), is among the leading brands in the branded men’s denim segment.

Today, the stock opened at Rs 761.30, with a high and low of Rs 823.95 and Rs 744.50, respectively. The stock is currently trading at Rs 779.65, reflecting a 7.64% increase. The stock has a 52-week high of Rs 823.95 and a 52-week low of Rs 364.85. The company has a ROCE of 26.2% and an ROE of 21.8% with a market capitalization of Rs 4,779 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.