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Last Updated : May 23, 2016 12:57 PM IST | Source: Moneycontrol.com

Buy Nilkamal, Target Rs 1620: Dynamic levels

Dynamic level's is bullish on Nilkamal has recommended buy rating on the stock with a target price of Rs 1620 in its research report dated May 18, 2016.

 
 
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Dynamic levels research report on Nilkamal


In Q4FY16, Nilkamal delivered the highest PAT of Rs 104 Cr in FY16 against PAT of 42 cr in FY15, a growth of 145% YoY. Net profit increased by 50.53% to Rs. 32.65 Cr from Rs. 21.69 Cr in Q4 FY15 period. The company’s revenue for the March quarter rose by 2.55 to Rs. 502.79 Cr from Rs.490.27 Cr, when compared with the prior year. Operating Profit has increased by 38.41% YOY from Rs. 36.45 Cr to Rs. 50.45 Cr in current December quarter. EPS of the company stood at Rs. 21.88 a share during the quarter as against Rs. 14.53 over previous year period up by 50.58%. The expansion of company’s Jammu plant has been completed during Q3 FY16 and has commissioned production thereat. Revenue from Plastics Segment grew by 20% from 364.8 Cr to 437.6 Cr QoQ. Companies Retail business grew by 9% to 238 Cr. The Company’s retail business under@home recorded increased sales of Rs 238 Cr against 218 Cr last year, up by 9%. E-commerce channel showed a remarkable growth of 310% in terms of revenue.


We initiate coverage on Nilkamal Ltd as a BUY @1100-1150 with a target of Rs 1620 representing a potential upside of 45% from the buy price. Nilkamal The share is still trading at a low PE of 18.84 compared to Industry PE of 41.56. We are positive on the company prospects due to: PAT increased u by 124.8% YoY; Reserves of the company have gone up by 20%; Earnings per share has gone up by 125% YoY.


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First Published on May 23, 2016 12:29 pm
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