dynamic levels cosmo films€¦ · · 2018-01-16page 3 source: company, nilkamal ltd. nilkamal...

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Report By: Surbhi Bagaria – [email protected]

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


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


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


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


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


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


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


Others

93.55%

6.45%

Geographic Segments in INR (2016)

India

Rest of the World


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


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


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%


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%


-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%


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


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

https://www.dynamiclevels.com/en/nilkamal-share-price-forecast

https://www.dynamiclevels.com/en/supreme-industries-share-price-forecast

https://www.dynamiclevels.com/en/finolex-industries-share-price-forecast

https://www.dynamiclevels.com/en/astral-poly-share-price-forecast

https://www.dynamiclevels.com/en/responsive-industries-share-price-forecast


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


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


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.


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.

https://www.dynamiclevels.com/en/nilkamal-share-price-forecast


Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report

DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No

DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through Dynamic nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by Dynamic to be reliable. Dynamic or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of Dynamic shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and value of the investments referred to in this Report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Dynamic levels do not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment. Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. User should keep this risk in mind and not hold dynamic levels, its employees and associates responsible for any losses, damages of any type whatsoever. Dynamic and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall Dynamic and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report. Dynamic may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Dynamic. Dynamic Equities Pvt. Ltd. are also engaged in Proprietary Trading apart from Client Business.

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