dynamic levels cosmo films€¦ · · 2018-01-16page 3 source: company, nilkamal ltd. nilkamal...
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Page 2 Source: Company, www.dynamiclevels.com
Nilkamal- India’s favorite Furniture brand...
Nilkamal Ltd 3
Company Background 4
Product Portfolio 5
Company Financials 8
Peer Comparison 12
Shareholding Pattern 13
Plastic Sector Outlook 14
Nilkamal Valuation & Investment Rationale
15
Page 3 Source: Company, www.dynamiclevels.com
Nilkamal Ltd.
Nilkamal provides one stop solution for home décor with
wide range of products that includes furniture, home
furnishings, material handlings etc. NILKAMAL'S Core
Business includes:
Material Handling Solutions
Moulded Furniture
Nilkamal Mattrezzz
Nilkamal Home Ideas, the Home Furnishing Store
@home, the Mega Home Store Retail Chain
Dynamic Levels is positive on the prospects of Nilkamal as:
Nilkamal Ltd is the world's largest manufacturer of
moulded furniture of product mix right from bins,
crates, pallets, Material Handling Equipment.
Nilkamal delivered the highest PAT of Rs 104 Cr in
FY16 against PAT of 42 cr in FY15, a growth of 145%
YoY
During Q4 FY16, Net profit increased by 50.53% to
Rs. 32.65 Cr from Rs. 21.69 Cr in Q4 FY15 period.
The company’s revenue for the March quarter rose by
2.55 to Rs. 502.79 Cr from Rs.490.27 Cr, when
compared with the prior year
Operating Profit has increased by 38.41% YOY from
Rs. 36.45 Cr to Rs. 50.45 Cr in current December
quarter.
EPS of the company stood at Rs. 21.88 a share during
the quarter as against Rs. 14.53 over previous year
period up by 50.58%.
The expansion of company’s Jammu plant has been
completed during Q3 FY16 and has commissioned
production thereat.
Revenue from Plastics Segment grew by 20% from
364.8 Cr to 437.6 Cr QoQ.
Companies Retail business grew by 9% to 238 Cr.
The Company’s retail business under@home recorded
increased sales of Rs 238 Cr against 218 Cr last year,
up by 9%
E-commerce channel showed a remarkable growth of
310% in terms of revenue.
NILKAMAL Share Price Performance EXCHANGE SYMBOL NILKAMAL Current Price * 1260 Face Value 10 52 Week High 1631.95
(13-1-16) 52 Week Low 465.60 (14-
5-15) Life Time high 1631.95
(13-1-16) Life Time low 13.50 (21-
9-01) Average Daily Movement
54.98
Average Volume 173373 1 Month Return (%) -6.40 P/E Ratio (x) 20.00 Book Value 351.80 Market Cap 1862.78
(Cr) % of Promoter holding pledged
NIL
CMP Rs 1260 Target: 1620 FY17P/E: 18.84
COMPANY PROFILE OF NILKAMAL
Date of Incorporation 05-Dec-1985
Date of Listing 19-Sep-1995
Management
Name Designation
Vamanrai V Parekh Chairman
Manish V Parekh ED & President
Nayan S Parekh ED & President
Hiten V Parekh ED & Joint MD
Sharad V Parekh Managing Director
Registered Office Address
Survey No.354/2 & 354/3,Near Rakholi Bridge,Silvassa - Khanvel
Road,Vasona,396230,Silvassa,Dadra & Nagar Haveli,India
Website
http://www.nilkamal.com
Page 4 Source: Company, www.dynamiclevels.com
Company Background:
Nilkamal, the world’s largest producer of moulded plastic furniture,
Nilkamal’s core businesses include Material Handling Solutions,
@home (the Mega Home Store Retail Chain), Nilkamal Mattrezzz and
Nilkamal Home Ideas (the Home Furnishing Store).With changing times
and varied taste of customers, Nilkamal evolved itself into a „complete
furniture solution provider‟. Today the brand offers anything and
everything a customer may want to purchase which includes living room
solutions, bedroom solutions, dining solutions, seating solutions,
storage solutions or office furniture, name it and you will find it at
Nilkamal.
The brand has created waves in the international markets as well. From
developed and sophisticated markets of North America and Australia, to
developing markets in Africa, South America and GCC, Nilkamal
products are more than 30 countries. Nilkamal products are not only
available at leading retail stores, dealers’ outlets and institutions, but
also on online shopping sites.
Freedom cabinets, Novella & Crystal chairs and Luxurasofa sets are
some of the offerings that are selling like hot cakes in the market. The
company is poised to spread its wings across the world by providing a
lifestyle that’s par excellence.
The Company has a Joint Venture with BITO-Lagertechnik Bittman
GmbH, Nilkamal Bito Storage Systems Private Limited for the
manufacture of Material Handling and Storage Systems in Metal,
with a manufacturing plant at Samba, Jammu & Kashmir. The
Company has Joint Venture with CAMBRO, Cambro Nilkamal
Private Limited for Hospitality Products suited for large
Restaurants and Hotels.
It also has exclusive tie-ups with:
HanelBuro-Und Lagersystems, Germany
- For Automatic Storage and Retrieval Systems
Mitsubishi Forklift Trucks, USA
- For Material Handling Equipment
Combilift, USA - For Customized Material Handling Solutions
Aisle Master, Ireland - For VNA Articulated Forklifts
Magaziner, Germany - For Material Handling Equipment
Romold, Germany - For largest range of Manhole Chambers for sewerage & drainage systems
Page 5 Source: Company, www.dynamiclevels.com
Product Portfolio:
1. Material Handling: It Includes
Crates,
Pallets,
Metal Shelving & Racking,
Material Handling Equipment,
Hospitality,
Tool Storage Cabinets,
Ice Boxes, Fish Tubs,
Vaccine Carriers,
Road Safety Products,
Waste Management Tools,
Cold Storage Solutions
2. Furniture: It Includes
Living Room furniture
Storage Solution
Bedroom furniture
Dining table set
Homeutility furniture
Office furniture
Plastic furniture
School furniture
3. Chairs: It includes
Armless Chairs
Premium Chairs
High Back Chairs
Mid back Chairs
Novells Series
Crystal Chair
4. Mattrezzz
5. Pillows
Page 6 Source: Company, www.dynamiclevels.com
Revenue by Product
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
Plastics 9,574 11,296 13,009 14,071 14,189 15,986
Lifestyle Furnishing
1,196 1,720 1,913 2,039 2,188 2,175
Others 181 163 243 911 1,040 785
Revenue of Nilkamal has increased from plastic segment
Revenue by Geography
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
Total Revenue
13,181 15,165 17,022 17,418 18,946 19,960
India 10,289 12,393 14,215 15,925 16,292 17,723
Rest of the World
661 785 950 1,097 1,126 1,222
0
5,000
10,000
15,000
20,000
FY 2
01
1
FY 2
01
2
FY 2
01
3
FY 2
01
4
FY 2
01
5
FY 2
01
6
Plastics
Lifestyle Furnishing
Others
0
5,000
10,000
15,000
20,000
25,000
FY 2
01
1
FY 2
01
2
FY 2
01
3
FY 2
01
4
FY 2
01
5
FY 2
01
6
Total Revenue
India
Rest of the World
Page 7 Source: Company, www.dynamiclevels.com
Geographic Segments in INR (2016)
Sales (M)
India 93.55%
Rest of the World 6.45%
Business Segments in INR (2016)
Sales (M)
Plastics 15986
Lifestyle Furnishing 2175
Others 785
Current Capitalization in INR
Common Shares Outstanding (M) 14.92
Market Capitalization (M) 19,443.30
Cash and Equivalents (M) 253.39
Total Debt (M) 1,931.88
Preferred Equity (M) 0.00
Minority Interest (M) 62.21
Enterprise Value (M) 21,184.01
15986
2175
785
Business Segement
Plastics
Lifestyle Furnishing
Others
93.55%
6.45%
Geographic Segments in INR (2016)
India
Rest of the World
Page 8 Source: Company, www.dynamiclevels.com
Company Financials:
Income Statement (in Cr) FY 2014 FY 2015 FY 2016
Net Sales/Income from operations 1,745.02 1,887.81 1,996.00
Other Operating Income 7.23 6.77 7.31
Total Income From Operations 1,752.25 1,894.59 2,003.31
Increase/Decrease in Stocks 19.33 15.21 -15.95
Consumption of Raw Materials 636.95 733.04 699.11
Purchase of Traded Goods 442.35 444.4 454.82
Employees Cost 115.27 123.37 148.43
Depreciation 52.23 57.42 56.27
Other Expenses 381.27 422.37 476.85
Total Expenditure 1,647.40 1,795.81 1,819.52
Operating Profit 104.85 98.78 183.79
Other Income 3.56 4.56 3.39
P/L Before Int., Excpt. Items & Tax 108.41 103.34 187.18
Interest 42.51 32.51 18.04
P/L Before Exceptional Items & Tax 65.9 70.83 169.14
Tax 18.33 19.57 53.9
PAT 47.57 51.26 115.23
Minority Interest -- -- -1.92
Net Profit/(Loss) For the Period 47.57 51.26 113.32
Equity Share Capital 14.92 14.92 14.92
Reserves 471.84 510.05 611.3
EPS (Rs.) 31.53 33.83 75.94
WACC FY 2012
FY 2013
FY 2014
FY 2015
Equity
Cost of Equity 10.8% 9.7% 11.8% 12.1%
Weight of Equity
49.0% 38.3% 47.7% 76.5%
Debt
Cost of Debt 9.0% 8.6% 8.5% 7.8%
Weight of Debt
51.0% 61.7% 52.3% 23.5%
WACC 9.9% 9.0% 10.1% 11.1%
10.8%
9.7%
11.8% 12.1%
9.0% 8.6% 8.5%7.8%
--
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
FY 2012 FY 2013 FY 2014 FY 2015
Cost of Equity
Cost of Debt
Income Statement Analysis:
1. In FY 16 the Nilkamal total income from operations increased by 5.74% from 1849.59 Cr to 2003.31
2. PAT increased from 51.26 Cr to 115.23 Cr i.e up by 124.8% YoY whereas price has gone up by 153% from low of 478 to 1632.
3. The share is still trading at a low PE of 18.84 compared to Industry PE of 41.56
4. Reserves of the company have gone up by 20%.
5. Earnings per share has gone
up by 125% from 33.83 to 75.94
YoY
Page 9 Source: Company, www.dynamiclevels.com
BALANCE SHEET (InCr) FY 14 FY 15 FY 16
Equity Share Capital 14.92 14.92 14.92
Total Share Capital 14.92 14.92 14.92
Total Reserves and Surplus 471.84 510.05 611.3
Total Shareholders Funds 486.76 524.97 626.22
Minority Interest 5.38 6.22 7.2
NON-CURRENT LIABILITIES
Long Term Borrowings 93.33 43.94 8.79
Deferred Tax Liabilities [Net] 24.98 16.87 10.55
Other Long Term Liabilities 33.27 37.07 40.06
Long Term Provisions 7.9 8.39 6.98
Total Non-Current Liabilities 159.47 106.28 66.38
CURRENT LIABILITIES
Short Term Borrowings 177.59 127.21 75.39
Trade Payables 101.58 99.12 115.58
Other Current Liabilities 88.14 84.32 86.72
Short Term Provisions 22.34 23.75 26.86
Total Current Liabilities 389.64 334.4 304.55
Total Capital And Liabilities 1,041.26 971.87 1004.35
ASSETS
NON-CURRENT ASSETS
Fixed Assets 359.47 307.21 280.74
Non-Current Investments 0.27 0.27 0.27
Long Term Loans And Advances 57.68 52.82 51.18
Other Non-Current Assets 0.44 1.08 0.85
Total Non-Current Assets 417.86 361.37 333.04
CURRENT ASSETS
Current Investments 1.58 4.62 10.66
Inventories 315.83 292.36 315.93
Trade Receivables 235.66 249.84 285.53
Cash And Cash Equivalents 25.55 21.24 21.92
Short Term Loans And Advances 39.78 38.27 35.1
Other Current Assets 4.99 4.17 2.13
Total Current Assets 623.4 610.5 671.27
Total Assets 1,041.26 971.87 1004.35
Balance Sheet Analysis
Company’s long term
investment has increased
Nilkamal has reduced its
LONG term borrowings
from 43.9 Cr to 8.79 Cr
NILKAMAL has reduced its
short term borrowing
from 127.21 cr to 75.39 cr
NILKAMAL has
maintained its cash YoY
Page 10 Source: Company, www.dynamiclevels.com
Cash Flow of Nilkamal FY 13 FY 14 FY 15
Net Profit/Loss Before Extraordinary Items And Tax 43.65 58.13 60.51
Net Cash Flow From Operating Activities 74.71 154.79 152.02
Net Cash Used In Investing Activities -50.96 -33.06 -8.23
Net Cash Used From Financing Activities -26.02 -119.59 -148.22
Net Inc/Dec In Cash And Cash Equivalents -2.26 2.15 -4.43
Cash And Cash Equivalents Begin of Year 11.54 10.21 12.36
Cash And Cash Equivalents End Of Year 9.27 12.36 7.93
Key Financials FY12 FY13 FY14 FY15 FY16
Total Revenue 15,165.2 17,021.9 17,417.7 18,945.9 19,960.0
Growth Over Prior Year 15.1% 12.2% 2.3% 8.8% 5.4%
Net Income 611.1 371.4 470.5 504.8 1,133.2
Margin % 4.0% 2.2% 2.7% 2.7% 5.7%
Diluted EPS Excl. Extra Items 40.95 24.89 31.53 33.83 75.94
Growth Over Prior Year 9.3% (39.2%) 26.7% 7.3% 124.5%
Page 11 Source: Company, www.dynamiclevels.com
Segment wise Revenue, Result & Capital Employed
Segment wise Revenue, Result & Capital Employed
Consolidated
Segment Revenue FY15 FY16 Growth%
(a) Plastics 1615 1688 4.52%
(b) Lifestyle Furnite, Furnishings & Accessories
217.5 238 9.43%
(c ) Others 78.5 99 26.11%
total 1911 2025 5.97%
Less: Inter Segment revenue 16 21.5 34.38%
Net Income from Operations 1895 2003.5 5.73%
Segment Results FY15 FY16 Growth%
(a) Plastics 118 218 84.75%
(b) Lifestyle Furnite, Furnishings & Accessories
-11 -12 9.09%
(c ) Others 3.91 6.6 68.80%
total 110.91 212.6 91.69%
Less: Intest & Finance Charges 30 18 -40.00%
Other unallocable exp 11 28 154.55%
Total Profit before Tax 69.91 166.6 138.31%
Capital Employed FY15 FY16 Growth%
(a) Plastics 607 621 2.31%
(b) Lifestyle Furnite, Furnishings & Accessories
81 66 -18.52%
(c ) Others 40 41 2.50%
(d) Unallocalble -203 -102 -49.75%
0500
100015002000
FY15
FY16
-100
0
100
200
300
FY15
FY16
-300
-200
-100
0
100
200
300
400
500
600
700
FY15
FY16
Page 12 Source: Company, www.dynamiclevels.com
Peer Comparison
Company Name: NILKAMAL LTD
SUPREME INDS LTD
FINOLEX INDUS
ASTRAL POLY
RESPONSIVE IND Ltd
Latest Fiscal Year: 03/2016 06/2015 03/2015 03/2015 03/2015
52-Week High 1,631.95 881.90 404.00 462.25 208.80
52-Week High Date 1/13/2016 5/17/2016 5/17/2016 8/28/2015 6/18/2015
52-Week Low 478.00 520.00 245.60 333.05 74.65
52-Week Low Date 6/3/2015 12/10/2015 10/7/2015 2/29/2016 4/20/2016
Daily Volume 78,760 18,480 42,530 3,987 169
Current Price: 1,303.00 879.40 393.45 427.75 80.00
52-Week High % Change -20.2% -0.3% -2.6% -7.5% -61.7%
52-Week Low % Change 172.6% 69.1% 60.2% 28.4% 7.2%
Total Common Shares (M) 14.9 127.0 124.1 118.4 266.9
Market Capitalization 19,444.1 111,707.4 48,825.3 51,223.2 21,353.0
Total Debt 1,931.9 3,932.6 6,498.3 2,026.4 5,501.6
Minority Interest 62.2 - - 165.3 1,615.4
- Cash and Equivalents 253.4 1,796.3 592.8 114.9 770.2
Current Enterprise Value 21,184.8 113,705.3 51,515.1 52,570.8 26,069.1
Nilkamal has given highest return compared to its peers of 172 % in last 1 year
Nilkamal also has the highest volume compared to its peers making it easily tradable
Instrument 1M 3M 6M 1Y Movt Pst Budegt
NILKAMAL -2.02 26.3 28.96 151.83 40.8
SUPREME INDUSTRIES 11.23 26.07 38.92 31.22 29.75
FINOLEX INDUSTRIES 8.05 34.7 31.39 50.15 29.93
ASTRAL POLY -0.67 18.29 2.66 5.43 25
RESPONSIVE INDUSTRIES 4.33 -14.06 1.11 -25.21 -10.98
Page 13 Source: Company, www.dynamiclevels.com
Shareholding Pattern
Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15
Promoter and Promoter Group (%) 64.13 64.13 64.13 64.13 64.13 Indian 64.13 64.13 64.13 64.13 64.13 Foreign NIL NIL NIL NIL NIL Institutions (%) 8.03 6.92 5.25 5.54 6.48 FII 7.91 1.70 3.64 2.79 2.25 DII 0.12 5.22 1.61 2.75 4.23 NonInstitutions (%) 27.84 28.95 30.62 30.32 29.38 Bodies Corporate NIL NIL 7.54 7.45 4.84 Others 27.84 28.95 23.08 22.87 24.55 Custodians NIL NIL NIL NIL NIL Total no. of shares (cr.) 1.49 1.49 1.49 1.49 1.49
FII’s have increased their stake in FY16 from 1.70% to 7.91%
Persons holding securities more than 1% of total number of shares under category Public Shareholding.
Category Mar-16 Dec-15 Sep-15 Jun-15 Mar-15
Heirloom Finance Private Limited Promoters 6.11 6.11 6.11 6.11 6.11
Hiten V Parekh Promoters 8.11 8.14 8.11 8.11 8.11
Manish V Parekh Promoters 5.46 5.46 5.46 5.46 5.46
Manju M Parekh Promoters 2.63 2.63 2.63 2.63 2.63
Nayan S Parekh Promoters 8.05 8.05 8.05 8.05 8.05
Nilkamal Builders Pvt Ltd Promoters 9.81 9.81 9.81 9.81 9.81
Purvi N Parekh Promoters 2.71 2.71 2.71 2.71 2.71
Sharad V Parekh Promoters 8.66 8.66 8.66 8.66 8.66
Vamanrai V Parekh Promoters 12.03 12.03 12.03 12.03 12.03
Bengal Finance & Investment Pvt Ltd Non Promoters NIL 2.63 2.63 NIL NIL
Cello Pens & Stationery Pvt Ltd Non Promoters NIL NIL NIL 1.09 1.08
Dolly Khanna Non Promoters 2.36 2.41 2.49 2.24 1.66
Narendra Kumar Agarwal Non Promoters 2.85 NIL NIL NIL NIL
Premier Investment Fund Ltd Non Promoters NIL 1.02 NIL 1.51 1.31
Seetha Kumari Non Promoters 1.22 1.68 1.52 NIL 1.98
Sundar Iyer Non Promoters 1.34 1.34 1.34 1.34 NIL
Promoters of NILKAMAL have kept their investment constant throughout the year
Page 14 Source: Company, www.dynamiclevels.com
Plastic Sector Outlook The Indian economy returned to the growth path in 2015-16. The
country’s real gross domestic product (GDP) growth accelerated to 7.6
%from 6.9 % in 2013-14. The consumer price inflation fell to 5.39 per
cent from over 10 per cent in the last two years. The fall in inflation was
supported by falling oil prices, lower food and commodity prices, lower
MSP hikes and the proactive measures taken by Government to lower
food inflation such as curbing hoarding, offloading food stocks and
restrictions on exports.
Contrary to the expectations, agricultural sector witnessed a good
growth in 2015-16. However, the slow pace of reforms, lack of impetus
for infrastructure projects, high interest rates and tightening of fiscal
policies adversely impacted the capital goods sector. Industrial
production/output was also sluggish.
Its real GDP is expected to grow by 7.8 per cent during the year.
Higher growth expectations are backed by inflation which continues to
be ticking lower, softening interest rates coupled with stable Indian
Rupee and lower oil prices.
Steady Growth in Exports and Advantage India India is one of the most promising exporters of plastics among
developing countries. The plastics industry produces and exports a wide
range of raw materials, plastic-moulded extruded goods, polyester films,
laminates, moulded/soft luggage items, writing instruments, plastic
woven sacks and bags, polyvinyl chloride (PVC), leather cloth and
sheeting, packaging, consumer goods, sanitary fittings, electrical
accessories, laboratory/medical surgical ware, tarpaulins, laminates,
fishnets, travel ware, and others.
Demand from original equipment manufacturers (OEMs) has led to
producers focusing more on delivering products customised in line with
end-user needs. Moreover, the Indian plastics industry has started
manufacturing specific items to meet customer requirements. Design,
style, and pattern are set based on the requirements of customers in
export markets.
The Indian plastics industry offers excellent potential in terms of
capacity, infrastructure and cheap labour availability. It is supported by
a large number of polymer producers, and plastic process machinery
and mould manufacturers in the country.
Among the industry’s major strengths is the availability of raw materials
in the country. Thus, plastic processors do not have to depend on
imports. These raw materials, including polypropylene, high-density
polyethylene, low-density polyethylene and PVC, are manufactured
domestically.
India is one of the most
promising exporters of
plastics among developing
countries.
Demand from original
equipment manufacturers
(OEMs) has led to
producers focusing more
on delivering products
customised in line with
end-user needs
The plastics industry
produces and exports a
wide range of raw
materials, plastic-
moulded extruded goods,
polyester films, laminates,
moulded/soft luggage
items, writing
instruments, plastic
woven sacks and bags etc
Page 15 Source: Company, www.dynamiclevels.com
NILKAMAL Valuation & Investment Rationale:
Nilkamal’s retail business under@home recorded increased
sales of 238 Cr against 218 Cr last year, up by 9%, thus earning
cash profits.
Sales through ecommerce chaneel saw an uptrend, compared
to previous year, and resulted in remamrkable growth of 310%
in terms of revenues.
Nilkamal’s mattress business has achieved turnover of 30.01 Cr
for FY16. During FY16 Nilkamla introduced unique products like
Spinefit, Cool Bond, Mckenzie, Ortho etc., which have been
appreciated by the trade and customers at large.
Further, in the forthcoming financial year, the Company plans to
enter the Norhtern markets for achieving the objective of both
top line growth and deeper penetration.
Nilkamal’s joint Venture companies: Nilkamal Bito Storage
Systems Private Ltd witnessed a value and volume growth of
47% and 40% respectively, wheras its other joint venture
Cambro Nilkamal Pvt Ltd recorded turnover growth of 28%
during FY16
In the long run Nilkamal is bullish on the prospect of Furniture
business based on a good GDP growth which would unfold a lot
of opportunities for exponential growth, as the growing middle
class would need quality furniture from reliable manufacturers to
meet their aspirations of modern living.
The rising labour costs coupled with time poverty for the
working middle class consumers, softening of interest rates and
implementation of GST in the near future are also positive
triggers for this change. The pan India penetration and the
Company’s strength of servicing customers at arm’s length
through depots in major cities would definitely augment our
leadership strength and help the division grow at the rate of
12%-15% in revenue terms.
The major threats would be the volatility of raw material prices,
global uncertainties leading to adverse currency fluctuation and
non adherence of statutes by regional players who compete
mainly on the strength of low quality products and unethical
practices like evasion of taxes and other levies. Nevertheless,
like in all industries we strongly feel that the brand strength
would help to grow the market share and remain etched in the
consumers’ mind as “India‟s Favourite Furniture” in the years
to come.
Government’s stake on “Make in India”, reducing inflation by
improving supply side, implementation of GST will be favorable
for Nilkamal.
200
210
220
230
240
FY15FY16
218238
Nilkamal’s joint Venture companies: Nilkamal Bito
Storage Systems Private Ltd witnessed a value and volume
growth of 47% and 40% respectively
Implementation of GST in the near future is also positive
trigger for Nilkamal
Government’s stake on “Make in India”, reducing inflation by
improving supply side, implementation of GST
will be favorable for Nilkamal.
Page 16 Source: Company, www.dynamiclevels.com
The fluctuating raw material prices, consequent to instability in
crude prices remains a major concern for sustaining profitability
and sales growth in the short and medium term.
The Company has introduced unique product like Spinefit, Cool
Bond, Mckenzie, Ortho etc which has been appreciated by the
trade and customers at large.
Nilkamal is planning to enter the Northern markets for achieving
the objective of both top line growth and deeper penetration.
All units of the company have been awarded the ISO
50001:2011 EnMS Certifications from TUV-SUD Germany.
Nilkamal has been awarded the “BIFMA Compliance
certification” by the UK certification and Inspection Limited for
its Home, office, Educational and Modular Furniture range.
The company has expended a total capital expenditure of Rs.
38 crores during the FY16 towards plant and machinery, factory
equipment etc, including the expenditure towards expansion of
its Jammu plant.
The company has engaged the services of management
consultant, who have provided strategic inputs to the Company
for strengthening the business focus and improving its overall
performance and operational efficiencies.
We initiate coverage on Nilkamal Ltd as a BUY @1100-
1150 with a target of Rs 1620 representing a potential
upside of 45% from the buy price. Nilkamal The share is
still trading at a low PE of 18.84 compared to Industry PE
of 41.56. We are positive on the company prospects due
to:
PAT increased u by 124.8% YoY Reserves of the company have gone up by 20%. Earnings per share has gone up by 125% YoY
Nilkamal is continuously innovating and entering new
markets and segments
Nilkamal is planning to enter the Northern
markets for achieving the objective of both top line growth and deeper penetration.
Page 17 Source: Company, www.dynamiclevels.com
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DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No
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