Our team of research analysts has always maintained that Nilkamal is a great stock and an absolute multibagger. Here’s some relevant information about the stock to help investors in making the right decision.
About the company:
Nilkamal, a famous brand that needs little introduction, is Asia’s largest manufacturer of moulded plastic furniture. With a strong market presence and superior brand value, it comes as no surprise that Nilkamal is an absolute multibagger stock.
There was a time when Nilkamal overstretched its limits and suffered a setback. The company had tried to expand too fast and it backfired. This multibagger stock was previously facing problems in its retail division ‘@ home’ and they suffered considerable losses due to over-expenditure on the part of the company and the cautious spending of people. But the company turned these losses into gains by well-implemented strategic moves. The management decided to control their spending and focus on their core expertise instead.
The potential of this stock to become a multibagger is huge as the spending habits of Indians is undergoing a sea change and the amount of expendable income in the hands of people is also going up steadily. The company has several segments like moulded furniture, material handling, mattress, @Home and Home Ideas.
NILKAMAL Limited was registered on the National Stock Exchange and Bombay Stock Exchange following 1991.Nilkamal’s (FY 13-14) turnover surpassed INR. Rs.1654.77crores.
Nilkamal’s Core Businesses
Material Handling Solutions
@home, the Mega Home Store Retail Chain
Nilkamal Home Ideas, the Home Furnishing Store
Manufacturing and Selling Strengths
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)
Stock fundamentals of Nilkamal Limited:
The stock is currently trading at Rs 435, above the book value of Rs 310.10
The market cap of Nilkamal is currently at Rs 648.38 crores.
The valuation of Nilkamal is 18.58x times (PE) and its valuation is currently cheaper than the industry’s valuation of 29.22x times.
The EPS (earnings per share) is Rs 23.39
The stock made a 52 week high of Rs 505.80 and the stock made a 52 week low of Rs 142.05
The stock made a lifetime high of Rs 505.80 on the 10th of December 2014 and a lifetime low of Rs 13.50 on the 21st of September 2001.
Tha average daily movement is 22.01 points
The current ratio is good at 2.44%
The interest coverage ratio is also very good at 3.78%
The debt equity ratio is 0.56x
Return on equity is 9.66%
Return on asset is 4.65%
PAT (profitability after taxes) has increased from March 2013’s Rs 37.86 crores to 2014’s Rs 47.57 crores. (according to consolidated income statement)
Nilkamal has given its shareholders a return of 55% in the last 3 months.