Anand Rathi's research report on Nilkamal
Nilkamal’s Q1 revenue surged 18.9% y/y to Rs8.8bn. Gross profit was up 15.5% y/y to Rs3.7bn. Business restructuring and front-loading of costs w.r.t the Hosur, TN plant restricted EBITDA to Rs580m, up 2.9% y/y. Depreciation/interest expense (up 15.6/20.0% y/y) cut PAT 16.6% y/y to Rs152m. We believe healthy revenue growth momentum is likely due to the utilisation ramp-up at Hosur and a further Rs1.5bn capex likely in FY26 revenue next year. We introduce FY28e and expect 15.1/25.1% revenue/PAT CAGRs over FY25-28.
Outlook
We retain our Buy recommendation on the stock, with an unchanged 12-mth TP of Rs2,232, 18x the average FY27e/FY28e EPS (20x FY27e EPS).
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