Buy Nilkamal, target Rs 2,231: Jayant Manglik

Jayant Manglik

Nilkamal holds leadership position in material handling and moulded furniture segments, which are key revenue & profit growth drivers for the company. The growth in these segments is largely linked to the macro revival and improved consumption.

Good monsoon would boost the consumer spending and propel the demand for company’s products across its segments ‘plastics and retail (at home)’.

We estimate Nilkamal's consolidated revenue and PAT to grow by 10 percent & 19 percent CAGR over FY18-20E. Operating leverage and some stability in the crude oil prices should result in gradual uptick in margins.

We have a buy on the stock with target of Rs 2,231 per share.

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