Capstocks Equity Research
Company Analysis
21st Jan 2015
_____________________________________________________________________________________
Capstocks Research Team
Reiterate Buy
Target
Holding Period
: ` 464
: ` 545
: 3 Months
Conviction Ideas - 153
Nilkamal
COMPANY OVERVIEW:
Nilkamal is the undisputed leader in the Indian market for moulded Plastic Furniture, being the
largest manufacturer and marketer of moulded plastic chairs in India. Promoted by the Parekh
family, Nilkamal Plastics, incorporated in Dec.'85 as Creamer Plastic a private limited company,
converted into a public limited company in Jul.90. In Aug.'90, the name was changed to the
present one. The Company has 8 large manufacturing plants in India: North – Samba (Jammu &
Kashmir) and Greater Noida (Uttar Pradesh) * East - Barjora (West Bengal) * West - Sinnar,
Nashik (Maharashtra) and Silvassa (Union Territory of Dadra & Nagar Haveli) (2 plants)
* South – Pondicherry (Union Territory) and Hosur (Tamilnadu). Occupying a massive total
constructed area of 1 million Sq. ft; all of Nilkamal’s manufacturing plants are ISO 9001/2008
Certified and practice 6 Sigma manufacturing process. This extensive manufacturing
infrastructure is ably supported by their wide and strong sales network of 400+ technocommercial experts, operating through 39 Regional Offices and 41 Warehouses spread across
India. All the Nilkamal plants, warehouses and offices are connected to the Head Office in real
time by ERP, SAP-R3.
BUSINESS:
Nilkamal is engaged in the business of moulded furniture, material handling solutions and
mattress. The company also runs home store retail chain. The company is the largest
manufacturer and marketer of moulded plastic chairs. They manufacture and sell plastic moulded
chairs in Indian markets, along with sofas as well as ready to assemble furniture too. In Material
Handling, Nilkamal is a "One Stop Shop for Material Handling Solutions" and offers a
comprehensive product mix right from bins, crates, pallets, Material Handling Equipment
ranging from Pallet Trucks to Stackers, Forklifts, Shelving and Racking plus all equipment
required for every type of industry which is growing at a rapid pace in India. The Company's
New Venture @home, the Mega Home Retail Chain is recognized as a pioneer and leader in this
category in India. @home is spread across the country with 16 large format retail stores with an
average of 25,000 Sq.ft. per store. @home, positioned as a Home Maker store, is a perfect onestop solution store for home planning, with finest quality furniture, soft furnishing, home
accessories and a plethora of a whole lot of services to enhance your indoor and outdoor spaces.
The designs @home are contemporary yet practical, mirroring Indian taste & finesse. The
company has consistently won many prestigious export awards and recognitions since past years.
FINANCIAL HIGHLIGHTS:
2013
FY 2014
Net Sales Cr.
FY 2012
1508.5
1745.0
1693.8
Net Profit Cr.
61.8
37.8
47.5
EPS Rs.
40.9
Book Value Rs.
24.8
298.1
31.5
277.5
326.6
4
4
4
Dividend Rs.
____________________________________________________________________________________
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1
Capstocks Equity Research
Company Analysis
21st Jan 2015
_____________________________________________________________________________________
INVESTMENT RATIONALE:
Nilkamal manufactures wide range of moulded furniture and material handling containers. The
company products are well accepted in both domestic and international. They also export to
major markets in Europe and Americas which are known for being sticklers for quality. Due to
slowdown in economy and high raw material prices, the last few years’ performance of the
company was lackluster. With expected improvement in domestic economy, the company is set
to do well. The recent sharp fall in crude oil prices will reduce cost as most of their raw materials
are crude oil derivatives. The loss making @home retail chain business has turnaround and
shown profit in FY14 which will aid overall performance of the company. We expect operating
performance of the company to improve well in the near future on lower raw material costs, less
interest outgo and lower depreciation charges. Valuation of the stock looks attractive even after
the current run up, the stock has witnessed. Considering its brand, quality, market acceptability
for its products we advise investors to buy Nilkamal at current levels for decent return with
medium term perspective.
SHAREHOLDING PATTERN
AS ON Sep 2014
PROMOTERS
India
%
STOCKS DETAILS
.
NSE SYMBOL
NILKAMAL
63.57
FACE VALUE Rs.
INSTITUTIONS
Mutual funds
FII
Bodies Corporate
Public and Others
7.41
0.87
4.32
23.83
10
EPS Rs.
31.5
MARKET PRICE Rs.
464
P/E
14.7
____________________________________________________________________________________
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2
Capstocks Equity Research
Company Analysis
21st Jan 2015
_____________________________________________________________________________________
P revious Conviction Ideas:
Sl.
No.
Recommendation Date Target
CMP Status
& Price
Price
152 Tata Motors
14-Jan-15
` 523
` 590
550
151 Castrol
` 521
` 590
07-Jan-15
500
150 Federal Bank
` 146
` 170
25-Dec-14
143
149 Zensar Tech
` 585
` 690
18-Dec-14
672
148 JM Financials
11-Dec-14
` 50
` 57
50
` 500
` 575
147 Canfin Homes
03-Dec-14
704
Target Achieved
146 Bharat Electronics
` 2300
` 2650
26-Nov-14
3140
Target Achieved
145 Tata Coffee
` 980
` 1150
20-Nov-14
1011
144 Centum
` 558
` 675
12-Nov-14
740
Target Achieved
` 25.3
` 32
143 PNB Gilts
5-Nov-14
32
Target Achieved
142 Sanghi Industries
` 61
` 75
15-Oct-14
58
` 452
` 520
141 Canfin Homes
8-Oct-14
704
Target Achieved
140 LG Balakrishnan
1-Oct-14
` 704
` 790
639
Target Achieved
139 Castrol India
` 434
` 490
24-Sep-14
500
Target Achieved
138 Garware Wallropes
` 180
` 218
10-Sep-14
208
Target Achieved
137 V-Mart
` 432
` 490
27-Aug-14
492
Target Achieved
136 Amararaja Batteries
13-Aug-14
` 532
` 625
825
Target Achieved
135 Gujarat Alkalies
` 201
` 245
30-July-14
191
134 Hindustan Zinc
` 169
` 195
23-July-14
163
133 Aarti Industries
` 204
` 245
16-July-14
274
Target Achieved
132 Nilkamal
` 392
` 475
2-July-14
457
Target Achieved
` 415
` 476
131 Zensar Tech
25-June-14
672
Target Achieved
130 JK Tyres
` 56
` 65
11-June-14
122
Target Achieved
129 M&M Financials
` 304
` 352
28-May-14
268
128 JMC Projects
21-May-14
` 149
` 185
178
Target Achieved
127 LG Balakrishnan
` 233
` 263
7-May-14
639
Target Achieved
126 Amararaja Batteries
` 490
30-April-14 ` 422
825
Target Achieved
125 Atul
` 520
` 590
23-Apr-14
1367
Target Achieved
124 Canfin Homes
16-Apr-14
` 240
` 280
704
Target Achieved
123 TVS Srichakra
` 304
` 345
2-Apr-14
1674
Target Achieved
122 Styrolution ABS
` 475
` 555
25-Mar-14
715
Target Achieved
121 SKF India
` 795
` 890
19-Mar-14
1377
Target Achieved
120 Cox & Kings
` 152
` 175
12-Mar-14
319
Target Achieved
119 Crompton Greaves
` 134
` 150
5-Mar-14
194
Target Achieved
118 L G Balakrishnan
` 163
` 187
19-Feb-14
639
Target Achieved
117 TV Today
` 113
` 140
12-Feb-14
230
Target Achieved
116 Accelya Kale
29-Jan-14
` 750
` 845
1043
Target Achieved
115 NIIT Tech
` 413
` 475
22-Jan-14
369
Target Achieved
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Please see the disclaimer at the end
For Private circulation only
3
Company Name
Capstocks Equity Research
Company Analysis
21st Jan 2015
_____________________________________________________________________________________
114 JK Tyre
113 Gujarat Pipavav
112 NIIT Ltd
111 V-Mart
110 Atul
109 FDC
108 TVS Motor
107 Gujrat Gas
106 Infotech Enter.
105 Tata Steel
104 VST Tillers
103 Avanti Feeds
102 Amararaja Battery
101 Alembic Pharma
99 Gujrat Gas
98 Atul
97 Bajaj Corp
96 Biocon
95 Indraprastha Gas
94 Accelya Kale
93 Avanti Feeds
92 Hindalco
91 Pfizer
90 Avanti Feeds
89 Amararaja Batt.
88 Sundaram Finance
87 NDTV
86 JK Tyre
85 Jammu & Kashmir
84 JK Lakshmi
83 Bajaj Corp
82 ITC
81 GIPCL
79 Yes bank
78 Chettinad Cement
76 ABirla Nuvo
75 JB Chemicals
74 Vijaya Bank
73 NMDC
72 HIL Limited
15-Jan-14
8-Jan-14
01-Jan-13
26-Dec-13
04-Dec-13
27-Nov-13
20-Nov-13
13-Nov-13
06-Nov-13
23-Oct-13
09-Oct-13
03-Oct-13
18-Sep-13
11-Sep-13
21-Aug-13
14-Aug-13
07-Aug-13
31-Jul-13
17-Jul-13
10-Jul-13
03-Jul-13
26-Jun-13
12-Jun-13
05-Jun-13
29-May-13
22-May-13
15-May-13
09-May-13
02-May-13
17-Apr-13
03-Apr-13
13-Mar-13
06-Mar-13
13-Feb-13
06-Feb-13
23-Jan-13
16-Jan-13
09-Jan-13
02-Jan-13
26-Dec-12
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33.4
63
28
220
430
101
50.3
289
250
335
460
225
297
141
207
313
245
318
305
557
160
97
1061
130
274
560
93
23.2
137
90
243
300
71
522
910
1170
90
66
170
490
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`
38.8
72
36
260
475
118
58
330
285
390
536
258
345
162
237
360
276
375
345
625
185
112
1220
155
305
650
110
27
152
104
275
330
82
575
1090
1290
104
77
196
575
122
204
45
492
1367
157
300
719
547
396
1526
1585
825
468
719
1367
409
428
476
1043
1585
143
2128
1585
825
856
114
122
156
413
409
350
86
856
710
1846
199
50
138
658
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Booked Loss
Target Achieved
Target Achieved
Target Achieved
Target Achieved
____________________________________________________________________________________
Please see the disclaimer at the end
For Private circulation only
4
Capstocks Equity Research
Company Analysis
21st Jan 2015
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71
70
69
68
67
66
65
64
63
62
61
60
58
57
56
55
54
53
52
51
49
48
47
46
45
44
43
42
41
40
39
38
37
36
35
34
33
32
31
30
29
Tata Motor DVR
LIC Housing
Gujarat Alkalies
Texmaco Rail
Bajaj Auto
Sundaram Finance
IDFC
Karur Vysya Bank
JB Chemicals
Cairn India
Zensar Tech
Bajaj Corp
JKTyre
Kale Consultants
Goodricke Group
Orient Paper
Ceat
Venky’s
Tata Sponge *
Cera Sanitaryware
Mangalam Cement
Alembic Pharma
IDFC
FDC
Force Motor
Chettinad Cement
Automobile Corp
Everest Industries
Goodricke Group
Amararaja Battery
HSIL Limited
Goodyear Tyres
Gateway Distriparks
Sundaram Finance
Raymond
Hydrabad Industries
Cera Sanitaryware
Zensar Tech
NIIT Tech
Fag Bearings
Escorts
19-Dec-12
12-Dec-12
03-Dec-12
29-Nov-12
22-Nov-12
15-Nov-12
31-Oct-12
10-Oct-12
03-Oct-12
26-Sep-12
12-Sep-12
05-Sep-12
22-Aug-12
16-Aug-12
08-Aug-12
01-Aug-12
25-Jul-12
18-Jul-12
11-Jul-12
04-Jul-12
20-Jun-12
13-Jun-12
06-Jun-12
30-May-12
23-May-12
16-May-12
09-May-12
02-May-12
24-Apr-12
18-Apr-12
11-Apr-12
04-Apr-12
28-Mar-12
21-Mar-12
14-Mar-12
29-Feb-12
22-Feb-12
15-Feb-12
09-Feb-12
01-Feb-12
25-Jan-12
`
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`
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`
`
`
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`
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`
`
`
`
`
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`
`
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`
`
`
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`
`
`
`
`
174
274
141
64
1830
480
161
433
75
335
270
185
23.2
168
145
64*
96
458
339
287
122
52
126
81
458
700
350
160
155
158
165
365
150
320
400
345
219
181
240
1199
84
` 195
` 314
` 171
` 74
` 2050
` 575
` 180
` 495
` 90
` 375
` 305
` 220
` 25.6
` 192
` 175
` 78
` 114
` 520
` 375
` 330
` 152
` 62
` 153
` 95
` 550
` 875
` 425
` 205
` 175
` 188
` 205
` 440
` 180
` 363
` 460
` 420
` 260
` 215
` 310
` 1430
` 102
360
483
191
138
2433
1432
170
599
199
238
672
409
122
1043
153
27
816
388
635
2050
335
468
170
157
1187
710
516
343
153
825
407
618
399
1432
532
658
2050
672
369
3590
133
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
____________________________________________________________________________________
Please see the disclaimer at the end
For Private circulation only
5
Capstocks Equity Research
Company Analysis
21st Jan 2015
_____________________________________________________________________________________
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Oracle Financial
Tata Motors
Zensar Tech
Manglore chemicals
Amararaja Battery
LIC Housing
Raymond
Grindwell Norton
FDC
Biocon
United Phosphorus
Gujarat Industries
Ashok Leyland
Gateway Distriparks
Balmer Lawrie
Wyeth
L.G. Balakrishnan
CRISIL
ITC
Sundaram Finance
Yes Bank
Goodyear Tyres
IDFC
City Union Bank
Ineos ABS
IGL
GMDC
Amararaja Batteries
18-Jan-12
11-Jan-12
05-Jan-12
30-Nov-11
17-Nov-11
02-Nov-11
20-Oct-11
12-Oct-11
05-Oct-11
28-Sep-11
21-Sep-11
14-Sep-11
07-Sep-11
24-Aug-11
17-Aug-11
10-Aug-11
03-Aug-11
27-Jul-11
20-Jul-11
13-Jul-11
06-Jul-11
29-Jun-11
22-Jun-11
15-Jun-11
08-Jun-11
01-Jun-11
25-May-11
18-May-11
` 2020
` 205
` 135
` 33
` 112
` 235
` 356
` 235
` 89
` 345
` 155
` 76
` 27
` 130
` 377
` 1016
` 145
` 870
` 205
` 276
` 325
` 322
` 122
` 45
` 595
` 342
` 138
` 104
` 2280
` 240
` 165
` 40
` 130
` 275
` 415
` 268
` 106
` 385
` 179
` 86
` 32
` 150
` 428
` 1150
` 170
` 960
` 226
` 320
` 374
` 396
` 154
` 54
` 690
` 409
` 180
` 128
3353
550
672
91
825
483
532
607
157
428
361
86
63
399
596
1344
639
2031
350
1432
856
618
170
95
715
476
129
825
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
Target Achieved
• Tata Sponge adjusted buy price post open offer is 285
• Model Portfolio was given in Conviction Idea 50 , 59 ,77 ,80
• * 55 Demerged
• Some stocks have achieved target after the holding period mentioned in our report
Prepared By:
Capstocks Research Team
Capstocks & Securities (India) Pvt. Ltd
Tel: 0471-4093361 | E-mail: [email protected]
www.capstocks.com
************************************************************************************************************
Disclaimer: Capstocks & Securities India (Pvt) Ltd do not accept responsibility for consequences of financial decisions taken by
readers on the basis of information provided herein. The aim is to provide a reasonably accurate picture of financial and related
opportunities based on information available with us. Issued by the Equity Research & Analysis Department of Capstocks & Securities
India (Pvt) Ltd, Capstocks Towers, Thakaraparambu Road, Trivandrum 695023, Kerala. Please note that Capstocks, its directors and
associates may have trading or investment positions in the securities mentioned herein
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6