3QFY2016 Result Update | Plastic Products
February 1, 2016
Nilkamal
NEUTRAL
CMP
`1,346
Performance Update
Target Price
-
Y/E March (` cr)
3QFY2016 3QFY2015
% chg (yoy) 2QFY2016
% chg (qoq)
Investment Period
-
Net sales
428
421
1.8
482
(11.0)
Stock Info
EBITDA
46
31
49.2
50
(7.6)
Sector
Plastic Products
EBITDA margin (%)
10.8
7.4
345bp
10.4
40bp
Market Cap (` cr)
1,749
Net debt (` cr)
173
Adjusted PAT
20
8
138.6
26
(21.6)
Beta
1.5
Source: Company, Angel Research
52 Week High / Low
1,631 / 375
Nilkamal (NILK) reported an in-line set of numbers for 3QFY2016. The top-line
Avg. Daily Volume
32,319
Face Value (`)
10
reported a modest growth of 1.8% yoy to `428cr. The raw material cost as a
percentage of sales declined by 738bp yoy to 54.8% owing to declining in
BSE Sensex
24,871
polymer prices. However, the employee cost and other expenses increased by
Nifty
7,564
Reuters Code
NKML.BO
176bp yoy and 217bp yoy to 8.6% of sales and 25.8% of sales, respectively, thus
Bloomberg Code
NILK IN
partially offsetting the benefits of lower raw material costs. The EBITDA margin
expanded by 345bp yoy to 10.8%. Aided by lower raw material cost and lower
interest outgo, the net profit grew by 138.6% yoy to `20cr.
Shareholding Pattern (%)
Promoters
64.1
Plastics division to benefit from revival in economy: After witnessing volume
de-growth in FY2014, the Plastics division witnessed volume growth of 10% in
MF / Banks / Indian Fls
1.6
FY2015 and is estimated to have posted a volume growth of ~5% for 9MFY2016.
FII / NRIs / OCBs
3.6
With the fourth quarter tending to be the best in terms of volume, the growth for
Indian Public / Others
30.6
FY2016E is likely to be ~7%. Material Handling and Moulded Furniture segments
of the Plastics division are directly impacted by the macro environment and we
Abs.(%)
3m 1yr
3yr
expect them to maintain steady growth rate due to the positive economic outlook. The
Sensex
(7.3)
(16.2)
24.4
company has sufficient capacity in place and we do not foresee any substantial capex in
NILK
31.0
191.0
528.2
the near future.
Stable raw material cost to aid in maintaining margins: Polymer prices declined
3 year daily price chart
by ~16% in 3QFY2016 on a yoy basis, thus leading to lower raw material costs.
1,800
With crude likely to be range bound, we expect polymer prices to remain at current
1,600
1,400
levels and increase by ~5% from here on, which should enable NILK in maintaining
1,200
its margins over FY2016E-2018E.
1,000
800
Outlook and Valuation: We expect the company’s Plastics business to post a
600
400
CAGR of 8.3%, with an upturn in the economy, over FY2015-2018, which will aid
200
the company to post revenue CAGR of 7.5%, over the same period, to `2,220cr.
-
The EBITDA margin is expected to be at 10.3% in FY2018E. The company is
expected to be net debt free by FY2018E which will lead to higher profitability.
Consequently, the company would more than double its PAT to `116cr in FY2018E
Source: Company, Angel Research
from `42cr in FY2015, as per our estimates. At the current market price, the stock is
trading at FY2018E PE of 17.3x. We have a Neutral rating on the stock.
Financials (Standalone)
Y/E
Sales OPM PAT EPS RoE P/E P/BV EV/BITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
1,871
10.7
94
63.2
17.6
21.3
3.5
10.5
1.1
Milan Desai
FY2017E
2,031
10.5
104
69.8
16.6
19.3
3.0
9.5
1.0
022-4000 3600 Ext.: 6846
FY2018E
2,220
10.3
116
78.0
15.9
17.3
2.6
8.4
0.9
[email protected]
Source: Company, Angel Research
Please refer to important disclosures at the end of this report
1
Nilkamal | 3QFY2016 Result Update
Exhibit 1: 3QFY2016 performance
Y/E March (` cr)
3QFY16
3QFY15
yoy chg (%)
2QFY16
qoq chg (%)
9MFY16
9MFY15
% chg
Net Sales
428
421
1.8
482
(11.0)
1,367
1,296
5.5
Net raw material
235
262
(10.3)
282
(16.6)
786
828
(5.1)
(% of Sales)
54.8
62.2
(738)bp
58.5
(366)bp
57.5
63.8
(638)bp
Staff Costs
37
29
28.1
32
13.2
100
84
18.8
(% of Sales)
8.6
6.8
176bp
6.7
183bp
7.3
6.5
83bp
Other Expenses
110
99
11.1
117
(5.8)
333
294
13.2
(% of Sales)
25.8
23.6
217bp
24.3
143bp
24.3
22.7
165bp
Total Expenditure
382
390
(2.0)
431
(11.4)
1,219
1,206
1.1
Operating Profit
46
31
49.2
50
(7.6)
149
90
64.7
OPM
10.8
7.4
345bp
10.4
40bp
10.9
7.0
390bp
Interest
4
9
(53.2)
4
(8.1)
13
24
Depreciation
12
14
(11.2)
13
(3.1)
37
42
(10.8)
Other Income
0.2
2.8
(93.7)
3.8
(95.3)
6
4
49.4
PBT
30
12
162.1
37
(18.0)
105
29
12.6
(% of Sales)
7.1
2.8
7.7
7.6
2.2
Tax
10
3
11
33
8
(% of PBT)
33.6
27.1
30.6
31.1
29.3
Reported PAT
20
8
138.6
26
(21.6)
71
21
242.9
PATM
4.7
2.0
5.3
5.2
1.6
Source: Company, Angel Research
Exhibit 2: Actual vs. Angel estimates (3QFY2016)
Actual (` cr)
Estimate (` cr)
Var (%)
Total Income
428
456
(6.0)
EBIDTA
46
46
0.8
EBIDTA margin (%)
10.8
10.1
74bp
Adjusted PAT
20
21
(2.6)
Source: Company, Angel Research
Top-line below expectation, EBITDA and Net Profit in-line
NILK’s standalone top-line line grew by 1.8% yoy to `428cr, which is below our
estimate of `456cr. As per the Management, the Plastics division witnessed a
volume de-growth of ~1% on a yoy basis in 3QFY2016 and as a result both
Material Handling and Moulded Furniture businesses are likely to have
experienced flattish volumes during the quarter.
February 1, 2016
2
Nilkamal | 3QFY2016 Result Update
Exhibit 3: yoy revenue growth subtle due to flattish volumes
11.2
600
12.0
9.6
8.3
10.0
500
7.0
8.0
400
6.5
5.1
6.0
4.2
4.0
300
2.0
1.
8
200
-
(2.0)
100
(4.0)
(3.6)
-
(6.0)
Revenue (LHS)
yoy growth (RHS)
Source: Company, Angel Research
Aided by a sharp decline in raw material prices, the EBITDA grew by an impressive
49.2% yoy to `46cr, which is in-line with our estimate. As per our reckoning,
average polyethylene prices declined by 15.7% on a yoy basis (7.8% decline on a
qoq basis) during the quarter resulting in raw material costs declining by 738bp
yoy to 54.8% of sales. However, the employee cost and other expenses increased
by 176bp yoy and 217bp yoy to 8.6% and 25.8% of sales, respectively.
Exhibit 4: Lower RM leads to Margin expansion...
Exhibit 5: ... and bottom-line growth
11.3
10.8
362.8
60
10.4
12.0
30
400.0
9.8
9.2
276.1
350.0
50
10.0
25
8.2
300.0
7.4
138.6
40
6.8
6.7
8.0
20
250.0
200.0
116.8
30
6.0
15
150.0
100.0
30.5
19.0
20
4.0
10
(12.4)
(45.5)
53.6
50.0
-
10
2.0
5
(50.0)
-
-
-
(100.0)
EBITDA (LHS)
EBITDA Margin (RHS)
PAT (LHS)
yoy growth (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
The EBITDA margin expanded by 345bp yoy to 10.8% against our estimate of
10.1%. The company has been continuously reducing its debt over the past six
quarters and as result, the interest cost declined by 53.2% yoy to `4cr. Aided by a
better operational performance and lower interest outgo, the net profit grew by
138.6% yoy to `20cr which is in-line with our estimate of `21cr.
February 1, 2016
3
Nilkamal | 3QFY2016 Result Update
Exhibit 6: Segment wise performance
Y/E March (` cr)
3QFY16
3QFY15
% chg (yoy) 2QFY16
% chg (qoq)
Total Revenue
A) Plastics
365
364
0.3
409
(10.8)
B) Lifestyle
60
53
13.4
68
(12.0)
C) Others
9
8
9.4
8
5.1
Total
433
424
2.1
485
(10.7)
Less: Inter-Segmental Rev.
4
3
4
Net Sales
430
421
2.1
482
(10.7)
Segmental Profit
A) Plastics
45
21
109.6
45
(1.2)
B) Lifestyle
(2)
(1)
46.2
1
(267.9)
C) Others
(0.8)
0
(257.6)
(1)
(3.0)
Segmental Margin (%)
A) Plastics
12.3
5.9
641bp
11.1
120bp
B) Lifestyle
(2.9)
(2.2)
(65)bp
1.5
(441)bp
C) Others
(8.6)
6.0
(1460)bp
(9.3)
72bp
Source: Company, Angel Research
As far as segmental performance is concerned, the Plastics division witnessed a
0.3% yoy revenue growth to `365cr and the margins for the segment improved by
641bp yoy to 12.3%. As of 9MFY2016, the Plastics division is estimated to have
posted volume growth of ~5.7%.
The Lifestyle segment’s revenues grew by 13.4% yoy to `60cr while the segment
reported a loss of `2cr for the quarter. Others, which includes the Mattress
business, saw a revenue growth of 9.4% on a yoy basis to `9cr while the segment
reported a loss of `0.8cr for the quarter.
February 1, 2016
4
Nilkamal | 3QFY2016 Result Update
Investment Arguments
Plastics division to benefit from revival in Economy
The Plastics business, accounting for ~86% of the company’s total revenue, is the
primary business of the company. Owing to a poor macro environment, the
division had witnessed volume de-growth in FY2014. However, it rebounded well
in FY2015, posting a volume growth of 10% and it has posted volume growth of
~5% in 9MFY2016 (4Q tends to be the best quarter in terms of volumes). We
expect both the segments of the division, viz Material Handling and Moulded
Furniture, to benefit from an expected improvement in the macro conditions in the
country.
The Material Handling segment is B2B in nature and is an important part of
industrial activity. NILK is a ’One Stop Shop’ for material handling solutions, with
the company being the largest manufacturer of plastic crates and other products
like pallets, metal storage racks, and material handling equipment for various
industries. As per an industry report, Supreme Industries, which is the second
largest Material Handling player, is very small compared to NILK in terms of size
of its Material Handling business with revenue of ~`240cr against ~`900cr for
NILK.
Stable raw material prices to lead to sustainable margins going
ahead
Tracing the decline in crude prices, polymer (the main raw material for the plastic
industry) prices have declined as well, thereby improving margins of plastic
products manufactures. The price of crude has corrected significantly from
US$112/barrel in July 2014 to the current level of US$33/barrel; down by ~71%
during the period. This correction has resulted in average polyethylene prices
declining by
~26% over the same period. Going forward, crude as well
as polyethylene prices are expected to stabilize or surge by
~3-5% over
FY2016E-18E.
Exhibit 7: Stable RM prices to help margins
1,400
65.0
63.2
63.3
64.0
1,200
63.4
63.0
1,000
62.0
61.1
61.0
800
60.0
58.9
59.1
600
58.5
59.0
400
58.0
57.0
200
56.0
-
55.0
FY2012
FY2013
FY2014
FY2015
FY2016E FY2017E FY2018E
Net Raw Material
As % of Sales
Source: Company, Angel Research
February 1, 2016
5
Nilkamal | 3QFY2016 Result Update
Strong Balance Sheet
NILK’s balance sheet is stress free with its net-debt/equity maintained below the
1.0x mark over the past three years. The debt level of the company has declined
significantly in FY2015 and the company continues to further reduce the overall
debt. The benefits of this are evident in the decline in interest expense over the past
three quarters which are adding directly to the bottom-line. As on FY2015, the net
debt to equity stood at 0.4x; with the current reduction in loans we expect the same
to decline to 0.2x level by FY2016E and be net debt free by FY2018E.
The asset turnover (Gross Block) is expected to increase from 2.5x in FY2015 to
2.8x in FY2018E due to sales CAGR of 7.5% over FY2015-18E and gross block
CAGR of 4.0%.
Exhibit 8: Net debt to equity to decline
400
1.0
Net Debt (LHS)
Net debt to equity (RHS)
350
0.8
0.8
300
0.6
0.6
250
200
0.4
0.4
150
0.2
0.2
100
0.0
-
50
(0.1)
-
(0.2)
FY2013
FY2014
FY2015E FY2016E FY2017E FY2018E
Source: Company, Angel Research
February 1, 2016
6
Nilkamal | 3QFY2016 Result Update
Financials
Revival in Indian economy to aid revenue growth
We are estimating the company’s Plastics division to post a revenue CAGR of 8.3%
over FY2015E-18E resulting in the overall top-line registering a CAGR of 7.5%
over FY2015-2018E to `2,220cr in FY2017E.
Exhibit 9: Revenue to improve by 7.5% CAGR over FY2015-17E
2,500
14.0
12.3
12.0
2,000
9.3
8.6
10.0
8.3
1,500
8.0
6.0
1,000
4.7
4.0
500
2.4
2.0
-
0.0
FY2013
FY2014
FY2015
FY2016E FY2017E FY2018E
Revenue (LHS)
Growth (RHS)
Source: Company, Angel Research
We expect the EBITDA margin to improve by 241bp over FY2015-2018E to 10.3%.
The company continues to reduce its debt level and is expected to be net debt free
by FY2018E and as a result, its bottom-line in our view should more than double
to `116cr in FY2018E from `42cr in FY2015.
Exhibit 10: EBITDA margin to rebound
Exhibit 11: PAT trajectory
250
10.7
12.0
140
6.0
10.5
10.
3
5.0
5.1
5.2
8.8
10.0
120
5.0
200
7.9
7.8
100
8.0
4.0
150
80
6.0
3.0
2.4
60
100
2.0
4.0
2.4
2.0
40
50
2.0
1.0
20
0
0.0
0
0.0
FY2013
FY2014
FY2015
FY2016E FY2017E FY2018E
FY2013
FY2014
FY2015
FY2016E FY2017E FY2018E
EBITDA (LHS)
EBITDA Margin (RHS)
PAT (LHS)
PATM (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
February 1, 2016
7
Nilkamal | 3QFY2016 Result Update
Exhibit 12: Relative valuation (Trailing twelve months)
Company
Mcap
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/BITDA
EV/Sales
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Nilkamal
2,008
1,866
10.6
93
62.3
16.5
21.6
3.6
10.4
1.1
Supreme Industries
9,393
4,211
16.7
347
27.3
29.0
27.0
7.9
13.7
2.3
Source: Company, Angel Research
Outlook and Valuation
We expect the Material Handling segment of the Plastics division to be the main
beneficiary from an expected up-turn in the economy. We have built in a revenue
CAGR of 7.5% over FY2015-18E to `2,220cr. The EBITDA margin is expected to
be at 10.3% in FY2018E and the net profit is expected to be at `1161cr in
FY2018E. At the current market price, the stock is trading at FY2018E PE of 17.3x.
We have a Neutral rating on the stock.
Exhibit 13: One-year forward PE chart
1,600
Price
6x
11x
16x
21x
1,400
1,200
1,000
800
600
400
200
-
Source: Company, Angel Research
Concerns
Volatile raw material prices: Raw materials account for 63% of net sales. High
volatility in crude and raw material prices could have a negative impact on the
company’s performance.
Economic slowdown: Economic slowdown will have a negative impact on the
performance of the company as both plastics and @home are dependent on the
economic scenario.
Competition from the unorganized segment: Availability of low priced furniture
from the unorganized segment poses a threat as it is able to undercut prices by
compromising on quality.
February 1, 2016
8
Nilkamal | 3QFY2016 Result Update
Exhibit 14: Crude and Polypropylene price fluctuation
130
8,500
120
7,500
110
6,500
100
90
5,500
80
86
4,500
70
3,500
60
2,500
50
2,469
40
1,500
Avg Polyethylene Prices (LHS)
Brent Prices INR (RHS)
Source: Company, Angel Research
Company background
Incorporated in 1985, Nilkamal Ltd (NILK) is a market leader in moulded plastic
products. The company has three divisions, viz Plastics, Lifestyle Furniture, &
Furnishings and Accessories. The products of these divisions are sold through the
company’s retail chain “@home”; further, the company has recently forayed into
the mattress business. The company’s manufacturing plants are located at Barjora
in West Bengal, Hosur in Tamil Nadu, Jammu, Kharadapada and Vasona in
Dadra & Nagar Haveli, Noida in UP, Sinnor and Nashik in Maharashtra and in
Pudducherry.
NILK is a market leader in the Material Handling segment, backed by its ability to
directly reach a very diverse set of industrial customers through
400+
self-employed sales people operating from 39 regional sales offices across India.
The Moulded Furniture segment of the company enjoys a ~39% market share in its
category. NILK has 26 small format stores along with a strong network of 40+
depots and 1000+ channel partners on a pan India basis, thus enabling it to serve
the remotest rural markets. Its retail store chain
“@home”, operates
18 stores across 13 cities covering a retail space of over 3.15 lakh sq. ft.
February 1, 2016
9
Nilkamal | 3QFY2016 Result Update
Profit and loss statement (standalone)
Y/E March (` cr)
FY2014
FY2015
FY2016E
FY2017E
FY2018E
Total operating income
1,649
1,787
1,871
2,031
2,220
% chg
2.4
8.3
4.7
8.6
9.3
Net Raw Materials
1,043
1,133
1,094
1,196
1,313
% chg
2.5
8.6
(3.5)
9.4
9.8
Power and Fuel
40
41
45
49
51
% chg
(15.8)
3.4
9.8
8.6
4.8
Personnel
105
113
136
146
160
% chg
3.7
7.2
20.1
7.8
9.3
Other
316
360
397
428
468
% chg
(0.4)
14.0
10.2
7.8
9.6
Total Expenditure
1,504
1,647
1,671
1,819
1,993
EBITDA
145
140
200
212
228
% chg
14.3
(3.4)
42.9
6.2
7.2
(% of Net Sales)
8.8
7.8
10.7
10.5
10.3
Depreciation & Amortisation
49
54
50
54
56
EBIT
96
86
150
158
172
% chg
16.5
(10.2)
73.5
5.9
8.3
(% of Net Sales)
5.8
4.8
8.0
7.8
7.7
Interest & other Charges
41
32
20
15
12
Other Income
4
6
9
10
12
(% of Net Sales)
0.2
0.3
0.5
0.5
0.5
Recurring PBT
55
54
130
143
159
% chg
38.3
(0.6)
138.6
10.3
11.3
PBT (reported)
58
61
139
153
171
Tax
18
18
44
49
55
(% of PBT)
31.1
29.8
32.0
32.0
32.0
PAT (reported)
40
42
94
104
116
Extraordinary Expense/(Inc.)
-
-
-
-
-
ADJ. PAT
40
42
94
104
116
% chg
21.7
6.1
122.1
10.4
11.8
(% of Net Sales)
2.4
2.4
5.0
5.1
5.2
Basic EPS (`)
26.8
28.5
63.2
69.8
78.0
Fully Diluted EPS (`)
26.8
28.5
63.2
69.8
78.0
% chg
21.7
6.1
122.1
10.4
11.8
Dividend
7
8
8
8
8
Retained Earning
33
35
87
96
109
February 1, 2016
10
Nilkamal | 3QFY2016 Result Update
Balance sheet (Standalone)
Y/E March (`cr)
FY2014
FY2015
FY2016E
FY2017E
FY2018E
SOURCES OF FUNDS
Equity Share Capital
15
15
15
15
15
Reserves& Surplus
448
478
564
660
769
Shareholders’ Funds
463
492
579
675
784
Total Loans
320
207
163
136
109
Other Long Term Liabilities
33
37
37
37
37
Long Term Provisions
7
7
7
7
7
Deferred Tax (Net)
24
16
16
16
16
Total Liabilities
847
759
802
871
953
APPLICATION OF FUNDS
Gross Block
717
716
745
774
805
Less: Acc. Depreciation
385
432
483
537
593
Less: Impairment
-
-
-
-
-
Net Block
333
284
262
238
213
Capital Work-in-Progress
2
1
1
1
1
Investments
26
26
26
26
26
Long Term Loans and adv.
56
52
52
52
52
Other Non-current asset
0
1
1
1
1
Current Assets
579
557
617
724
848
Cash
18
8
48
108
175
Loans & Advances
43
40
41
42
43
Inventory
301
277
292
319
351
Debtors
218
232
235
255
279
Other current assets
-
-
-
-
-
Current liabilities
149
161
158
171
188
Net Current Assets
430
395
459
553
660
Misc. Exp. not written off
-
-
-
-
-
Total Assets
847
759
802
871
953
February 1, 2016
11
Nilkamal | 3QFY2016 Result Update
Cash flow statement (Standalone)
Y/E March (`cr)
FY2014
FY2015
FY2016E FY2017E FY2018E
Profit before tax
58
61
139
153
171
Depreciation
49
54
50
54
56
Change in Working Capital
28
25
(24)
(34)
(40)
Direct taxes paid
(18)
(27)
(44)
(49)
(55)
Others
(4)
(6)
(9)
(10)
(12)
Cash Flow from Operations
113
106
112
114
120
(Inc.)/Dec. in Fixed Assets
(34)
2
(29)
(30)
(31)
(Inc.)/Dec. in Investments
(0)
0
0
0
0
(Incr)/Decr In LT loans & adv.
(5)
4
-
-
-
Others
4
6
9
10
12
Cash Flow from Investing
(36)
12
(19)
(20)
(19)
Issue of Equity
-
-
-
-
-
Inc./(Dec.) in loans
(74)
(109)
(44)
(27)
(26)
Dividend Paid (Incl. Tax)
(7)
(8)
(8)
(8)
(8)
Others
(3)
(11)
-
-
-
Cash Flow from Financing
(84)
(128)
(52)
(35)
(34)
Inc./(Dec.) in Cash
(7)
(10)
40
59
67
Opening Cash balances
25
18
8
48
108
Closing Cash balances
18
8
48
108
175
February 1, 2016
12
Nilkamal | 3QFY2016 Result Update
Key Ratios (Standalone)
Y/E March
FY2014
FY2015
FY2016E
FY2017E
FY2018E
Valuation Ratio (x)
P/E (on FDEPS)
50.2
47.3
21.3
19.3
17.3
P/CEPS
22.6
20.9
13.9
12.7
11.6
P/BV
4.3
4.1
3.5
3.0
2.6
Dividend yield (%)
0.3
0.4
0.4
0.4
0.4
EV/Net sales
1.4
1.2
1.1
1.0
0.9
EV/EBITDA
15.8
15.6
10.5
9.5
8.4
EV / Total Assets
2.8
2.9
2.7
2.4
2.0
Per Share Data (`)
EPS (Basic)
26.8
28.5
63.2
69.8
78.0
EPS (fully diluted)
26.8
28.5
63.2
69.8
78.0
Cash EPS
59.6
64.5
97.0
105.9
115.6
DPS
4.6
4.5
4.5
4.5
4.5
Book Value
310.1
330.0
388.0
452.6
525.4
DuPont Analysis
EBIT margin
5.8
4.8
8.0
7.8
7.7
Tax retention ratio
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
2.1
2.4
2.6
2.8
3.0
ROIC (Post-tax)
8.3
8.1
14.3
15.1
16.0
Cost of Debt (Post Tax)
8.0
8.5
7.4
7.1
6.9
Leverage (x)
0.6
0.4
0.2
0.0
(0.1)
Operating ROE
8.6
8.0
15.4
15.1
15.0
Returns (%)
ROCE (Pre-tax)
11.4
11.0
19.6
19.3
19.1
Angel ROIC (Pre-tax)
12.1
11.6
21.1
22.1
23.6
ROE
9.0
8.9
17.6
16.6
15.9
Turnover ratios (x)
Asset TO (Gross Block)
2.4
2.5
2.6
2.7
2.8
Inventory / Net sales (days)
67
59
56
55
55
Receivables (days)
50
46
46
46
46
Payables (days)
36
34
34
34
34
WC cycle (ex-cash) (days)
94
82
78
77
77
Solvency ratios (x)
Net debt to equity
0.6
0.4
0.2
0.0
(0.1)
Net debt to EBITDA
1.9
1.2
0.4
0.0
(0.4)
Int. Coverage (EBIT/ Int.)
2.3
2.7
7.4
10.2
13.8
February 1, 2016
13
Nilkamal | 3QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is
a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /
managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Nilkamal
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15%)
February 1, 2016
14