Nilkamal – Comfort to a New Level

May 16, 2016 - 06:24:37 PM

NILKAMALNilkamal surged almost 8% on 16th May 2016 after posting Q4 result. The top line has jumped by 5.73% in 1 year comparing from FY15 to FY16 while bottom line has jumped by 124.79% YoY from Rs. 51.26 crs to Rs. 115.23crs. Total operating expense has gone up by 1.16% YoY, company’s operating margin is 9.17%. This concluded that company’s economies of scale are working very efficiently. However, falling crude oil price has helped companies to lower down its cost of material consumed by 5%, benefiting company by 36.64 crs in FY 2016. Net Profit margin has gone up by 5.75%.

In FY 2016 the Company has posted net profit of Rs.115.23 crs vs Rs. 51.26.01 crs. Let’s have a look on business segment growth for FY 2015 to FY2016.

  • Plastic segment has shown growth of 4.52% in sales
  • Lifestyle Furniture, Furnishings & Accessories sales jumped by 9.45%
  • Other business showed jumped by almost 26%.

Nilkamal achievements during FY16 and forward looking statement

  • 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’s Joint Venture company i.e. Nilkamal Bito Storage System Private Limited witnesses a value and volume growth of 47% and 40% respectively
  • Joint Venture Company Cambro Nilkamal Private Limited recorded turnover growth of 28% during FY16.
  • 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.

Nilkamals Technical

Currently Nilkamal Share Price is trading at 1310 as per Dynamic Levels major support is at 1200 and resistance is at 1380. Company’s 52 week high is at 1631 and low id 465.60, the company has given a return of 250% in 1 year. this makes this company a Multibagger Stock. However, due to its good results company is still trading at lower PE Multiple of 20. Average 20 day volume is 173373 which is pretty high to allow a trader to trade freely without huge impact cost.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at

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