I bought KPR Mills for myself and suggested publicly to my Facebook friends…. At that time, KPR Mills was trading at 120…. It hit the price of 7,000 (Taking 1:1 split and Bonus into factor) in 2021…. So it multiplied 60 times in 7 years…. KPR Mills was an unknown name at that time, and nobody even heard this name…..So thebillion-dollarr question is what I saw in KPR Mills, which was not present in other famous stocks, so I preferred it above others…. Answer of this question lies in the secrets of Value Investing to which legends like Warren Buffet belongs to…. KPR Mills was grossly undervalued in my opinion compared to its financial position and its prospects…..Below are some positives I found before investing in it in 2014.

• It had some advantage over its competitors in its power costs…. The textile industry is a power-intensive industry, and power cost isa big component of their total cost… KPR Mills has its own wind energy setup…. Its competitors have high power costs compared to KPR Mills.
•  When I studied the company before investing in it, I spoke to the Company Secretary of KPR Mills to gain further insight about the operation of the company…. I was told that currently manufacturing plant is sealed by the government because in an unfortunate accident involving poisonous gas, 7 workers died in the plant…. Obviously, it was not a small incident, and regulators made athoroughh investigation of who was at fault in that accident… But it came out that in spite of such a big incident, not a single flaw was found in the internal security and operating procedure of the company, and later the plant was opened again for operation….. So instead of taking that incident negatively, I rather became more bullish on KPR Mills because if such a small company is having complete safety procedures and no action was taken by regulators against it, it was proof in itself that the company is being managed efficiently…. I took that incident positively, while many would have taken that incident negatively.
•  The company has a significant presence in Domestic as well as Global Markets.
•  Prospects of the Textile Sector as a whole were also strong.
•  Management is transparent,t and books are clean…. I was also impressed by the willingness of the Company Secretary to share details abouthe t company with a shareholder…. There are many companies in India whose management does not want to engage with shareholders… They treat the company as their own…. But KPR was different.
•  The next day, after talking tothe company secretary, I invested 15% of my portfolio in KPR Mills.

Happy Investing..!!

📢 Join Our Telegram Channel

Get daily value investing lessons, stock analysis & Titan Biotech updates — delivered straight to your phone!

✈️ Join @longtermequityy on Telegram

🔔 Free • No spam • Value investing insights daily