Kewal Kiran Clothing Limited DCF Valuation

KKCL · Textiles · Current price ₹451.3

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DocStoX fair value
₹795
medium confidence · 55/100
Current price
₹495
Upside to fair value
+60.6%
Estimate range
₹637 – ₹1,122
5Y profit growth
+50.1%
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Kewal Kiran Clothing Limited cash-flow valuation

Our engine did not use a discounted-cash-flow model for Kewal Kiran Clothing Limited. It routes each business to the methods that suit it, and a DCF is a poor lens where cash-flow forecasts are fragile or the business is capital-structure driven. The methods it did use, and why, are set out below. Our published estimate is ₹795.

Try your own assumptions

Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Kewal Kiran Clothing Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.

How we got this fair value

Every number below is part of the same estimate for Kewal Kiran Clothing Limited. Nothing here is a target price or a forecast of where the share price will go.

Medium confidence55/100

Workable, with real gaps. Weigh it alongside your own view rather than on its own.

Estimate range ₹637 – ₹1,122

Why this method for this business

Normalized earnings and relative PE are the most appropriate models for a cyclical business like textiles, where mid-cycle earnings and sector multiples are key valuation drivers.

The models behind the number

Each method is weighted by how well its inputs held up for this company.

Normalized earnings (mid-cycle EV/EBITDA)
₹63770% weight

Cyclical valued off mid-cycle earnings and a through-cycle EV/EBITDA (§6.6)

Fair multiple (P/E)
₹1,12230% weight
  • ev_ebitda was excluded due to insufficient data quality and lack of clear EV/EBITDA multiples for the sector

What was missing

  • Lack of forward-looking EBITDA and EPS data for precise normalization
  • Limited historical EV/EBITDA multiples for the sector

What drives it

23 inputs, grouped by how strong each claim is
ReportedRead from filings or market data. Verifiable, not our opinion.
Revenue (TTM)
1,213 ₹ cr

computed

Net debt
128 ₹ cr

computed

Shares outstanding
6,15,09,786

computed

Sector-median P/E
34.49×

peer-median

Peers used
9

peer-median

EPS (TTM)
24.02 ₹/share

computed

Own-history median P/E
20.64×

reconstructed (one feature, dampened — not a cap)

AssumptionA forward input the model chose. Reasonable people can disagree here.
EBITDA margin (cycle median)
19%

computed (≤5y median)

Through-cycle EV/EBITDA
17.55×

own-history (median of 5y)

JudgementOur read of the evidence, not a measurement.
Term: quality
+3.5%

quality 69/100 (high, stable returns) → premium (ROCE deteriorating → premium halved)

Term: growth
+40.0%

durable ~41% CAGR (ROCE 26% > hurdle) → premium

Term: capital_allocation
-3.4%

capital allocation: falling ROCE / weak cash generation → discount

Term: financial_strength
+8.7%

financial strength: low leverage (D/E 0.1) → mild premium

Term: history
-12.0%

history: market paid -40% vs sector, dampened ×0.3 (one feature, not the anchor)

Term: sector_rerating
+0.0%

sector re-rating: no sector-norm history → not used

Term: rate_regime
+1.2%

rates: risk-free 6.9% below ~7.1% normal → higher multiple

Term: risk
+0.0%

risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)

DerivedFalls out of the inputs above: a model output, not an independent input.
Mid-cycle EBITDA
230.5 ₹ cr

computed

Enterprise value
4,044.5 ₹ cr

computed

Net debt basis
gross (cash unavailable)

note: net debt approximated by gross debt (cash unavailable)

Premium vs sector
+35.4%

fundamentals + macro (not capped at own history)

Fair-multiple confidence
79%

data completeness + term agreement

Fair P/E
46.71×

sector median × ∏(1+term) — Dynamic Fair Multiple

Who computed this

A language model (qwen3:8b) selects the valuation method and the judgement inputs for Kewal Kiran Clothing Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.

Estimated 15 Sept 2026. Re-run as new financials and news arrive.

How we value stocks

We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.

Read the full fair-value methodology

More on Kewal Kiran Clothing Limited

DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.