KPR Mill shares surged 18% to hit a fresh 52-week high of ₹1,334 on Wednesday, marking its biggest single-day gain since October 13, 2008, when the stock had risen 20%. The textile company snapped a three-day losing streak, building on its 13.7% surge last week and continuing its strong momentum. The stock is currently trading with gains of 11% at ₹1,257, maintaining significant upward momentum. Over the past month, KPR Mill shares have gained 32% and year-to-date returns stand at 38%, demonstrating exceptional performance across multiple timeframes.
Motilal Oswal has initiated comprehensive coverage on India's textile sector, turning constructive on the space amid improving global demand outlook, favorable tariff realignment, and rising opportunities from global supply chain diversification. The brokerage has assigned a neutral rating on KPR Mill with a target price of ₹1,200 per share, though the stock is currently trading 11% higher than this level. According to the brokerage's research report, India is positioned at the cusp of transforming into a key global sourcing hub for textiles and apparel, supported by easing inflation, inventory normalisation across key markets such as the US and Europe, and upcoming free trade agreements (FTAs) with the UK and EU. The brokerage believes these factors collectively create a favorable environment for the textile industry's growth trajectory, with conditions starting to improve from CY25 onwards after a prolonged period of weakness in global textile and apparel trade.
Motilal Oswal has projected robust financial performance for KPR Mill, with the company expected to achieve a revenue CAGR of 13%, EBITDA CAGR of 20%, and adjusted profit after tax CAGR of 20% over financial year 2026-2028. The brokerage values the company at an EV/EBITDA multiple of 22 times its estimated earnings for financial year 2028. KPR Mill is well-positioned from its leadership in the Indian textile and apparel industry, supported by the largest garmenting capacity among listed peers, followed by the sugar and ethanol business. The company's strong fundamentals and market positioning support the positive outlook despite the neutral rating, with the stock trading above the brokerage's target price.
US Trade Representative Jamieson Greer is in India on a two-day visit leading talks for the proposed bilateral trade agreement, with Greer meeting India's commerce and industry minister Piyush Goyal in New Delhi on Tuesday. The trade negotiations have continued for over a year since the India-US Bilateral Trade Agreement process was launched in February last year. Motilal Oswal expects export growth to recover supported by these ongoing negotiations, alongside upcoming free trade agreements (FRAs) with the UK and EU, favorable tariff realignments, and improving incentives such as Rebate of State and Central Taxes and Levies (RoSCTL). The Centre has set an ambitious target to scale the textile market to $350 billion from $194 billion in FY26, implying a compound annual growth rate of 13% driven by strong export growth (22% CAGR) and steady domestic demand.
