Kewal Kiran Clothing can give 50 pc returns: Paras Adenwala

ET Now spoke to Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors, on his stock recommendations.

ET Now: What is your stock recommendation for today?

Paras Adenwala: I recommend Kewal Kiran Clothing, which is well known for its brands like Killer Jeans, Integriti and Lawman and Easies. This is a company which has been growing at at least 25% CAGR for the last 4 to 5 years, has a balance sheet which is very clean, at Rs 100 per share as cash in the books, and it has a positive cash flow.

This company is expected to continue to grow at the pace as they have been growing in the past and is available at a valuation which is just about 9.5 times on FY12 earnings as compared to someone like Page Industries which is at about 16 to 17 times on FY12 earnings. So stock is very cheap, has a balance sheet which is almost like a multinational balance sheet, is run very conservatively and tightly and has a management who are deeply committed to the business. So the stock is again looking very good with a one-year perspective for a 50% return.