4QFY2016 Result Update | Plastic Products
May 17, 2016
Nilkamal
NEUTRAL
CMP
`1,312
Performance Update
Target Price
-
Y/E March (` cr)
4QFY2016 4QFY2015
% chg (yoy) 3QFY2016
% chg (qoq)
Investment Period
-
Net sales
503
490
2.6
428
17.4
EBITDA
66
48
37.5
46
41.9
Stock Info
EBITDA margin (%)
13.1
9.8
333bp
10.8
227bp
Adjusted PAT
33
22
50.6
20
61.7
Sector
Plastic Products
Source: Company, Angel Research
Market Cap (` cr)
1,958
Nilkamal (NILK) reported an excellent set of numbers for 4QFY2016. The
Net debt (` cr)
73
standalone top-line grew by 2.6% yoy to `503cr. On the operating front, the raw
Beta
1.5
material cost declined by 582bp yoy to 56.4% of sales while employee and other
52 Week High / Low
1,631 / 480
expenses increased by 104bp yoy and 146bp yoy to 6.8% and 23.6% of sales,
Avg. Daily Volume
38,003
respectively. Aided by lower material cost, the EBITDA margin expanded by
Face Value (`)
10
333bp yoy to 13.1%. The interest outgo declined by 30% yoy to `4cr while the
BSE Sensex
25,653
depreciation expense increased by 27.6% yoy to `16cr. Consequently, the net
Nifty
7,861
profit grew by 50.6% yoy to `33cr.
Reuters Code
NKML.BO
Recovery in overall economy to aid in maintaining top-line growth: The plastics
Bloomberg Code
NILK IN
division which accounts for a majority of the company’s revenue (86%) reported a
marginal volume growth of 3% in FY2016 after strong growth of 10% in FY2015.
Going forward, with gradual improvement in the macro environment, both the
Shareholding Pattern (%)
moulded furniture and material handling segments should perform well as they
Promoters
64.1
stand to be direct beneficiaries of an economic revival.
MF / Banks / Indian Fls
0.1
FII / NRIs / OCBs
7.9
Strong Balance sheet: NILK has been steadily reducing its debt and should be
Indian Public / Others
27.8
debt free by FY2017E, thereby resulting in interest cost savings. It has carried out
incremental capex of `38cr in FY2016 and we do not foresee any large
expenditure in the near future. The company’s return ratios have improved
Abs.(%)
3m
1yr
3yr
significantly in FY2016 on account of RM cost benefit along with better asset
Sensex
10.6
(6.1)
26.5
turnover. Going forward, although the return ratios are estimated to regress on account of
lower margins which would be due to an anticipated increase in RM cost, the company’s
NILK
24.5
152.7
699.0
return ratios are expected to continue to be stable on back of increase in turnover.
Outlook and Valuation: The company’s core plastics division has posted a CAGR
3 year daily price chart
of ~8.0% over FY2011-16 and is expected to maintain similar pace over
1,800
1,600
FY2016-18E, thereby resulting in an overall revenue CAGR of 7.6% over FY2016-18E to
1,400
`2,165. On account of increase in RM cost, the EBITDA margin is expected to soften to
1,200
10.4% and the net profit is expected to be at `120cr in FY2018E. At the current market
1,000
800
price, the stock is trading at FY2018E PE of 16.3x. We have a Neutral rating on the stock.
600
400
Financials (Standalone)
200
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017E FY2018E
-
Net Sales
1,649
1,787
1,870
1,995
2,165
% chg
2.4
8.3
4.7
6.7
8.5
Adj. Net Profit
40
42
104
106
120
Source: Company, Angel Research
% chg
21.7
6.1
144.7
2.2
13.4
OPM (%)
8.8
7.8
11.5
10.7
10.4
EPS (Rs)
26.8
28.5
69.6
71.1
80.6
P/E (x)
48.9
46.1
18.8
18.4
16.3
P/BV (x)
4.2
4.0
3.3
2.9
2.5
RoE (%)
9.0
8.9
19.3
16.8
16.5
RoCE (%)
11.4
11.0
21.8
20.8
20.5
Milan Desai
EV/Sales (x)
1.4
1.2
1.1
1.0
0.9
022-4000 3600 Ext.: 6846
EV/EBITDA (x)
15.4
15.2
9.5
9.1
8.2
[email protected]
Source: Company, Angel Research; Note: CMP as of May 16, 2016
Please refer to important disclosures at the end of this report
1
Nilkamal | 4QFY2016 Result Update
Exhibit 1: 4QFY2016 performance
Y/E March (` cr)
4QFY16
4QFY15
yoy chg (%)
3QFY16
qoq chg (%)
FY2016
FY2015
% chg
Net Sales
503
490
2.6
428
17.4
1,870
1,787
4.7
Net raw material
284
305
(7.0)
235
20.8
1071
1133
(5.5)
(% of Sales)
56.4
62.3
(582)bp
54.8
161bp
57.3
63.4
(616)bp
Staff Costs
34
28
20.9
37
(6.1)
135
113
19.4
(% of Sales)
6.8
5.8
104bp
8.6
(171)bp
7.2
6.3
89bp
Other Expenses
119
109
9.3
110
7.5
450
401
12.3
(% of Sales)
23.6
22.1
146bp
25.8
(216)bp
24.1
22.4
163bp
Total Expenditure
437
442
(1.2)
382
14.4
1,656
1,647
0.6
Operating Profit
66
48
37.5
46
41.9
215
140
53.2
OPM
13.1
9.8
333bp
10.8
227bp
11.5
7.8
363bp
Interest
4
6
(30.0)
4
9.6
18
32
(44.2)
Depreciation
16
12
27.6
12
27.1
53
54
(2.1)
Other Income
2.8
2.0
39.5
0.2
1484.1
9
6
47.1
PBT
49
32
54.9
30
60.4
153
61
12.6
(% of Sales)
9.7
6.4
7.1
8.2
3.4
Tax
16
10
10
49
18
174
(% of PBT)
33.1
31.2
33.6
32
30
Reported PAT
33
22
50.6
20
61.7
104
42
144.6
PATM
6.5
4.4
4.7
5.6
2.4
318bp
Source: Company, Angel Research
Exhibit 2: Actual vs. Angel estimates (4QFY2016)
Actual (` cr)
Estimate (` cr)
Var (%)
Total Income
503
503
(0.1)
EBIDTA
66
51
28.2
EBIDTA margin (%)
13.1
10.2
289bp
Adjusted PAT
33
23
41.6
Source: Company, Angel Research
Top-line meets our estimates, EBITDA and Net Profit beat
expectation
NILK reported an excellent set of numbers for 4QFY2016. The standalone top-line
grew by 2.6% yoy to `503cr which is the same as our estimate. Polyethylene
remained flat and we reckon towards the plastics division having posted a
marginal volume growth of ~2% during the quarter.
For FY2016, the company’s standalone top-line grew by 4.7% yoy to `1,870cr. As
per the Management, the plastics division registered a volume growth of 3% and
the division’s revenue grew by 4.3% yoy to `1,613cr.
May 17, 2016
2
Nilkamal | 4QFY2016 Result Update
Exhibit 3: Revenue growth subtle yoy due to flattish volumes
600
12.0
11.2
500
10.0
9.6
8.3
400
8.0
7.0
6.5
300
6.0
5.1
200
4.2
4.0
2
.6
100
2.0
1.8
-
-
Revenue (LHS)
yoy growth (RHS)
Source: Company, Angel Research
The company benefitted from a sharp decline in raw material cost which came
down 582bp yoy to 56.4% yoy of sales during the quarter. However, employee
and other expenses increased by 104bp yoy and 146bp yoy to 6.8% and 23.6% of
sales, respectively.
Exhibit 4: Lower RM leads to Margin expansion...
Exhibit 5: ... and bottom-line growth
13.1
70
14.0
35
6.
5
7.0
11.3
10.8
60
10.4
12.0
30
6.0
9.8
5.5
5.3
9.2
50
10.0
25
5.0
7.4
4.4
4.7
6.8
6.7
40
8.0
20
4.0
30
6.0
15
3.1
3.0
2.0
20
4.0
10
2.0
1.3
1.5
10
2.0
5
1.0
-
-
-
-
EBITDA (LHS)
EBITDA Margin (RHS)
PAT (LHS)
PAT Margin (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
On the back of lower raw material cost, EBITDA grew by 37.5% yoy to `66cr and
the EBITDA margin expanded by 333bp yoy to 13.1% which is higher than our
estimate of 10.2%. We had estimated raw material cost to be on the higher side
which resulted in the deviation in margin vis-a-vis our estimates.
The company has reduced the debt quantum by `100cr over the past year, which
has resulted in lower interest outgo. Interest expense declined by 30.0% yoy to `4cr
but depreciation expense rose by 27.6% yoy to `16cr. Consequently, the net profit
grew by 50.6% yoy to `33cr, outperforming our estimate of `23cr.
May 17, 2016
3
Nilkamal | 4QFY2016 Result Update
Exhibit 6: Segment wise performance
Y/E March (` cr)
4QFY16
4QFY15
% chg (yoy) 3QFY16
% chg (qoq)
Total Revenue
A) Plastics
438
425
2.9
365
20.0
B) Lifestyle
60
60
0.9
60
0.9
C) Others
10
8
18.4
9
11.0
Total
508
493
3.0
433
17.2
Less: Inter-Segmental Rev.
5
3
5
Net Sales
503
490
2.6
428
17.4
Segmental Profit
A) Plastics
69
44
54.4
45
53.1
B) Lifestyle
(9)
(4)
114.7
(2)
419.1
C) Others
0.3
0
(13.3)
(1)
(134.8)
Segmental Margin (%)
A) Plastics
15.7
10.5
523bp
12.3
340bp
B) Lifestyle
(14.9)
(7.0)
(789)bp
(2.9)
(1200)bp
C) Others
2.7
3.7
(99)bp
(8.6)
1132bp
Source: Company, Angel Research
As for the segmental performance, the plastics division witnessed a 2.9% yoy
growth to `438cr in 4QFY2016 and the margins for the segment improved by
523bp yoy to 15.7%. For FY2016, the top-line for the division grew by 4.3% yoy to
`1,613cr while the segment margins expanded by 565bp yoy to 12.8%.
The lifestyle segment’s revenues grew by 0.9% yoy to `60cr while the segment
reported a bottom-line loss of `9cr. For FY2016, the segment reported a revenue
growth of 9.4% yoy to `238cr while the segment reported a bottom-line loss of
`12cr for FY2016 as against a loss of `11cr in the previous year.
Others, which includes the Mattress business, saw a revenue growth of 18.4% yoy
to `10cr while the segment reported a profit of `0.3cr for the quarter. For FY2016,
the top-line for the segment remained flat at `35cr while the segment reported a
loss of `1.4cr against a profit of `0.2cr in the last year.
May 17, 2016
4
Nilkamal | 4QFY2016 Result Update
Investment Arguments
Plastics division to benefit from revival in Economy
After a strong rebound in volumes in FY2015, the volumes for the plastics division
of the company have posted marginal growth rate of 3% for FY2016. The plastic
division accounts for ~86% of the company’s revenues and both the segments
within the division, viz moulded furniture (~36% of total revenue) and material
handling (~36% of total revenue) should benefit from improvement in the macro
conditions and disposable incomes.
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 ~`940cr for NILK.
Strong balance sheet
NILK has reduced its debt over the past year by ~`100cr and is expected to be net
debt free by FY2017E. The company generates strong operating cash flows which
should enable it to reduce its debt, take care of incremental capex and increase its
dividend payout. Interest expense has nearly halved as a result of its debt reduction
and it will further reduce and aid the bottom-line. The RoIC has improved
significantly from 11.6% in FY2015 to 23.0% in FY2016 and is estimated to
improve to 24.0% in FY2018E.
Exhibit 7: Improving Return Ratios
30.0
24.0
25.0
23.0
22.5
20.0
16.4
19.3
15.0
12.1
11.6
16.8
16.5
10.6
14.7
10.0
9.0
8.9
5.0
7.9
0.0
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017E FY2018E
RoIC
ROE
Source: Company, Angel Research
May 17, 2016
5
Nilkamal | 4QFY2016 Result Update
Financials
Revenue to post 7.6% CAGR over FY2016-18E
NILK’s plastic division has grown at ~8.0% over FY2011-2016. We are estimating
the division to post a revenue CAGR of 8.3% over FY2016-18E resulting in the
overall top-line registering a CAGR of 7.6% over FY2016-2018E to `2,165cr in
FY2018E.
Exhibit 8: Revenue to improve by 7.6% CAGR over FY2016-18E
14.0
2,500
12.3
12.0
2,000
10.0
8.5
8.3
1,500
6.7
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
EBITDA margins have improved significantly in FY2016 largely owing to lower raw
material costs. Average polyethylene prices declined by 8.6% in FY2016 and the
prices are likely to increase from here on which should result in higher RM cost
going forward. The EBITDA margin is likely to contract from 11.5% in FY2016 to
10.4% in FY2018E.
Exhibit 9: EBITDA to contract on rebound in RM cost
Exhibit 10: PAT trajectory
250
14.0
140
5.6
6.0
5.3
11.5
5.5
12.0
120
10.7
10.
4
5.0
200
8.8
10.0
100
7.9
7.8
4.0
150
8.0
80
3.0
2.4
6.0
60
100
2.0
2.4
2.0
4.0
40
50
2.0
20
1.0
-
-
-
-
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
May 17, 2016
6
Nilkamal | 4QFY2016 Result Update
Exhibit 11: Relative valuation (Standalone)
Company
Mcap
Sales
OPM
PAT
EPS
RoE
P/E
P/BV EV/EBITDA EV/Sales
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Nilkamal
FY2018E
1,958
2,165
10.4
120
80.6
16.5
16.3
2.5
8.2
0.9
Supreme Industries (Standalone) FY2018E
10,987
5,339
14.2
375
29.5
24.0
29.2
6.6
14.7
2.1
Source: Company, Angel Research
Outlook and Valuation
The plastics division has posted a CAGR ~8.0% over FY2011-16 and is expected
to maintain similar pace over FY2016-18E resulting in overall revenue CAGR of
7.6% over FY2016-18E to `2,165. On account of increase in RM cost, the EBITDA
margin is expected to be at 10.4% in FY2018E and the net profit is expected to be
at `120cr in FY2018E. At the current market price, the stock is trading at FY2018E
PE of 16.3x. We have a Neutral rating on the stock.
Exhibit 12: 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.
May 17, 2016
7
Nilkamal | 4QFY2016 Result Update
Exhibit 13: Crude and Polypropylene price fluctuation
130
8,500
120
7,500
110
6,500
100
90
5,500
9
3
80
4,500
70
3,500
60
3,0
41
2,500
50
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, and
furnishings & accessories. The products of these divisions are sold through the
company’s retail chain “@home”. The company is also present in the mattress
business which although is relatively smaller in size. 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.
May 17, 2016
8
Nilkamal | 4QFY2016 Result Update
Profit and loss statement (standalone)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017E
FY2018E
Total operating income
1,649
1,787
1,870
1,995
2,165
% chg
2.4
8.3
4.7
6.7
8.5
Net Raw Materials
1043
1133
1071
1164
1266
% chg
2.5
8.6
(5.5)
8.7
8.7
Power and Fuel
40
41
41
44
50
% chg
(15.8)
3.4
0.6
6.7
13.4
Personnel
105
113
135
142
154
% chg
3.7
7.2
19.4
5.1
8.5
Other
316
360
409
433
470
% chg
(0.4)
14.0
13.6
5.9
8.5
Total Expenditure
1504
1647
1656
1782
1939
EBITDA
145
140
215
213
226
% chg
14.3
(3.4)
53.3
(0.8)
6.3
(% of Net Sales)
8.8
7.8
11.5
10.7
10.4
Depreciation & Amortisation
49
54
53
55
57
EBIT
96
86
162
158
169
% chg
16.5
(10.2)
87.8
(2.4)
7.0
(% of Net Sales)
5.8
4.8
8.7
7.9
7.8
Interest & other Charges
41
32
18
9
5
Other Income
4
6
9
7
13
(% of Net Sales)
0.2
0.3
0.5
0.3
0.6
Recurring PBT
55
54
144
149
164
% chg
38.3
(0.6)
165.5
3.5
9.9
PBT (reported)
58
61
153
156
177
Tax
18
18
49
50
57
(% of PBT)
31.1
29.8
32.2
32.0
32.0
PAT (reported)
40
42
104
106
120
Extraordinary Expense/(Inc.)
-
-
-
-
-
ADJ. PAT
40
42
104
106
120
% chg
21.7
6.1
144.7
2.2
13.4
(% of Net Sales)
2.4
2.4
5.6
5.3
5.6
Basic EPS (`)
26.8
28.5
69.6
71.1
80.6
Fully Diluted EPS (`)
26.8
28.5
69.6
71.1
80.6
% chg
21.7
6.1
144.7
2.2
13.4
Dividend
7
8
12
15
18
Retained Earning
33
35
92
92
102
May 17, 2016
9
Nilkamal | 4QFY2016 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
570
662
764
Shareholders’ Funds
463
492
585
677
779
Total Loans
320
207
109
60
43
Other Long Term Liabilities
33
37
40
40
40
Long Term Provisions
7
7
5
5
5
Deferred Tax (Net)
24
16
9
9
9
Total Liabilities
847
759
749
791
876
APPLICATION OF FUNDS
Gross Block
717
716
745
775
807
Less: Acc. Depreciation
385
432
485
540
597
Less: Impairment
-
-
-
-
-
Net Block
333
284
260
236
210
Capital Work-in-Progress
2
1
1
1
1
Investments
26
26
26
26
26
Long Term Loans and adv.
56
52
51
51
51
Other Non-current asset
0
1
1
1
1
Current Assets
579
557
599
665
793
Cash
18
8
11
53
130
Loans & Advances
43
40
34
34
35
Inventory
301
277
296
317
344
Debtors
218
232
258
261
283
Other current assets
-
-
-
-
-
Current liabilities
149
161
189
188
205
Net Current Assets
430
395
410
477
588
Misc. Exp. not written off
-
-
-
-
-
Total Assets
847
759
749
791
876
May 17, 2016
10
Nilkamal | 4QFY2016 Result Update
Cash flow statement (Standalone)
Y/E March (`cr)
FY2014
FY2015
FY2016
FY2017E FY2018E
Profit before tax
58
61
153
156
177
Depreciation
49
54
53
55
57
Change in Working Capital
28
25
(12)
(25)
(33)
Direct taxes paid
(18)
(27)
(56)
(50)
(57)
Others
(4)
(6)
(9)
(7)
(13)
Cash Flow from Operations
113
106
129
129
131
(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
2
-
-
Others
4
6
10
7
13
Cash Flow from Investing
(36)
12
(17)
(23)
(18)
Issue of Equity
-
-
-
-
-
Inc./(Dec.) in loans
(74)
(109)
(97)
(49)
(17)
Dividend Paid (Incl. Tax)
(7)
(8)
(12)
(15)
(18)
Others
(3)
(11)
-
-
-
Cash Flow from Financing
(84)
(128)
(109)
(64)
(35)
Inc./(Dec.) in Cash
(7)
(10)
3
42
77
Opening Cash balances
25
18
8
11
53
Closing Cash balances
18
8
11
53
130
May 17, 2016
11
Nilkamal | 4QFY2016 Result Update
Key Ratios (Standalone)
Y/E March
FY2014
FY2015
FY2016E
FY2017E
FY2018E
Valuation Ratio (x)
P/E (on FDEPS)
48.9
46.1
18.8
18.4
16.3
P/CEPS
22.0
20.3
12.5
12.2
11.0
P/BV
4.2
4.0
3.3
2.9
2.5
Dividend yield (%)
0.4
0.4
0.6
0.7
0.9
EV/Net sales
1.4
1.2
1.1
1.0
0.9
EV/EBITDA
15.4
15.2
9.5
9.1
8.2
EV / Total Assets
2.7
2.9
2.7
2.5
2.1
Per Share Data (`)
EPS (Basic)
26.8
28.5
69.6
71.1
80.6
EPS (fully diluted)
26.8
28.5
69.6
71.1
80.6
Cash EPS
59.6
64.5
104.9
107.8
118.8
DPS
4.6
4.5
7.0
8.5
10.5
Book Value
310.1
330.0
392.0
453.4
521.9
DuPont Analysis
EBIT margin
5.8
4.8
8.7
7.9
7.8
Tax retention ratio
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
2.1
2.4
2.7
2.8
3.1
ROIC (Post-tax)
8.3
8.1
15.6
15.3
16.3
Cost of Debt (Post Tax)
8.0
8.5
7.7
7.1
7.0
Leverage (x)
0.6
0.4
0.1
(0.0)
(0.1)
Operating ROE
8.6
8.0
16.6
15.1
14.9
Returns (%)
ROCE (Pre-tax)
11.4
11.0
21.8
20.8
20.5
Angel ROIC (Pre-tax)
12.1
11.6
23.0
22.5
24.0
ROE
9.0
8.9
19.3
16.8
16.5
Turnover ratios (x)
Asset TO (Gross Block)
2.4
2.5
2.6
2.6
2.7
Inventory / Net sales (days)
67
59
56
56
56
Receivables (days)
50
46
48
48
48
Payables (days)
36
34
39
39
39
WC cycle (ex-cash) (days)
94
82
77
75
74
Solvency ratios (x)
Net debt to equity
0.6
0.4
0.1
(0.0)
(0.1)
Net debt to EBITDA
1.9
1.2
0.3
(0.1)
(0.5)
Int. Coverage (EBIT/ Int.)
2.3
2.7
9.1
17.8
32.3
May 17, 2016
12
Nilkamal | 4QFY2016 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%)
May 17, 2016
13