Why I bought KPR Mills in 2014 and why it Multiplied 88 Times?
Why I bought Mold-Tek Packaging and why it Multiplied 46 Times in 7 years?
August 19, 2016
Long Term Investing Vs Short Term Investing
June 11, 2017
KPR Mill Ltd
On 31 March 2014 I bought KPR Mill at ₹123 — ₹12.30 in today’s terms, after the two stock splits since. It wasn’t exciting. Textiles are about as unglamorous as the market gets. Today the stock trades near ₹1,088 — a return of roughly 88 times. When I first wrote about it, it was a ~60-bagger; simply holding a great business has since compounded that into an ~88-bagger. Here is why I bought it, and why I never sold.
Basis for the figure: buy call at ₹123 on 31 March 2014, when the face value was ₹10. The stock has split twice since — ₹10 to ₹5 (ex-date 29 November 2016) and ₹5 to ₹1 (ex-date 24 September 2021), a cumulative 10:1 — and the company has never issued a bonus. That makes the buy price ₹12.30 in today’s ₹1 face value. Closing price ₹1,088.70 on 12 August 2026. Past performance is not indicative of future returns.
A boring business done exceptionally well
KPR Mill is one of India’s largest vertically integrated textile companies — it spins its own yarn, knits its own fabric, and stitches its own garments, all the way to the finished export. On top of that it runs a profitable sugar and ethanol business and owns the FASO innerwear brand. Integration is its moat: by controlling every step, it protects its margins in an industry where most players are squeezed at both ends.
The fundamental strengths that made me buy
- True vertical integration. Yarn to fabric to garment under one roof — the whole value chain is captured internally, which is rare in Indian textiles and is the source of its durable margins.
- A high-quality compounder. Return on capital near 20% and return on equity of ~17%, held consistently for years — the signature of a genuinely well-run business.
- Serious scale and profits. FY25 revenue of ~₹6,388 crore and net profit of ~₹815 crore, supplying global apparel brands at volume.
- Sensible diversification. Sugar, ethanol and the FASO retail brand add cash-generative legs beyond textiles, riding the ethanol-blending tailwind.
- A strengthening balance sheet. Borrowings cut sharply (to ~₹466 crore), moving the company toward a net-cash position while it keeps growing.
- Structural tailwinds. The China+1 shift in global sourcing and a possible India–EU trade deal both point more apparel orders toward exactly this kind of integrated Indian manufacturer.
Why holding beat trading
The temptation with a big winner is to sell after it doubles. KPR taught me the opposite. A business that keeps earning ~20% on its capital, keeps expanding capacity, and keeps its balance sheet clean does not need me to trade it — it compounds on its own. The ~60× I first wrote about has become ~88× for one simple reason: I let a great business do the heavy lifting, year after year.
Don’t take my word for it — it’s on the public record
My original buy call on KPR Mill is a matter of public record on my Facebook profile, made years before the stock became a market favourite. Buying it was easy; the real edge was the temperament to keep holding while it multiplied.
My one-year recap post from March 2014 — naming this very call — embedded live from my profile, not a screenshot. Click it and verify the date, likes and comments yourself.
“The big money is not in the buying or the selling — it is in the waiting, on a business that quietly compounds while everyone else is distracted.”
The lesson for you
KPR Mill is my case study in patience. Find a genuinely integrated, well-managed, cash-generative business at a fair price — then get out of its way. The most powerful force in the market isn’t timing; it is a great business held for a very long time.
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Disclaimer: This article is for educational purposes only and does not constitute financial advice. The author may hold positions in stocks mentioned. Always conduct your own research and consult a SEBI-registered financial advisor before making investment decisions. Stock market investments are subject to market risks. Past performance does not guarantee future returns.
