Nilkamal an outperformer; tgt of Rs 470: IDFC-SSKI

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Nilkamal an outperformer; tgt of Rs 470: IDFC-SSKI

IDFC-SSKI has recommended outperformer rating on Nilkamal with a target of Rs 470. Research firm expects Nilkamal to continue to dominate the moulded plastic furniture segment (28% market share) as well as the crates & bins market (41% market share).

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Nilkamal BSE | NSE 28/05/12 Are Mutual Funds betting on Nilkamal?

IDFC-SSKI has recommended outperformer rating on Nilkamal in its December 19, 2007 report. "In a landmark transaction, Nilkamal Limited has entered into an agreement for sale of Nilkamal Bhoomi Developers Private Limited (NBDPL) for Rs 1.8 billion to India Blue Mountains Limited (IBML), a leading hotel owner and property development company. Nilkamal had formed a JV with Bhoomi Realty India Private Limited for NBDPL, in which Nilkamal had a 50.01% stake. NBDPL had acquired a property, measuring approximately 1.3 acres in Andheri (East), Mumbai, for Rs 380 million in April 2007. We believe the deal is highly accretive as the company has been able to realize a gain of Rs 480 million for its stake in the deal within a span of 8 months."

The report also says, "We expect Nilkamal to continue to dominate the moulded plastic furniture segment (28% market share) as well as the crates & bins market (41% market share). We also expect the '@ home' stores (lifestyle furniture) to experience strong growth on the back of changing lifestyles and the retail boom, while Nilkamal will have the first-mover advantage in the material handling business. With the stock currently trading at 10xFY09 earnings, we reiterate our out-performer rating with a price target of Rs 470 - an upside of 48% from CMP, " says IDFC-SSKI research report.

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