BSE:523385

Stock Analysis Report

Executive Summary

Nilkamal Limited, together with its subsidiaries, manufactures and sells plastic products primarily in India.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Nilkamal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 523385's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.7%

523385

-5.4%

IN Packaging

-3.0%

IN Market


1 Year Return

-30.8%

523385

-29.4%

IN Packaging

-29.2%

IN Market

Return vs Industry: 523385 underperformed the Indian Packaging industry which returned -29.4% over the past year.

Return vs Market: 523385 underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

523385IndustryMarket
7 Day-9.7%-5.4%-3.0%
30 Day-31.4%-30.1%-26.9%
90 Day-20.6%-25.1%-28.5%
1 Year-29.4%-30.8%-28.1%-29.4%-27.7%-29.2%
3 Year-47.4%-49.2%-38.7%-41.0%-15.2%-19.9%
5 Year144.5%132.8%9.0%3.1%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Nilkamal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nilkamal undervalued compared to its fair value and its price relative to the market?

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 523385 (₹991.15) is trading below our estimate of fair value (₹1409.56)

Significantly Below Fair Value: 523385 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 523385 is poor value based on its PE Ratio (10.5x) compared to the Packaging industry average (5.1x).

PE vs Market: 523385 is poor value based on its PE Ratio (10.5x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 523385 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 523385 is overvalued based on its PB Ratio (1.5x) compared to the IN Packaging industry average (0.6x).


Next Steps

Future Growth

How is Nilkamal forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 523385's forecast earnings growth (12.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 523385's earnings (12.3% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: 523385's earnings are forecast to grow, but not significantly.

Revenue vs Market: 523385's revenue (8.2% per year) is forecast to grow slower than the Indian market (9.1% per year).

High Growth Revenue: 523385's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 523385's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Nilkamal performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523385 has high quality earnings.

Growing Profit Margin: 523385's current net profit margins (6.2%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 523385's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 523385's earnings growth over the past year (18.1%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: 523385 earnings growth over the past year (18.1%) exceeded the Packaging industry 15.2%.


Return on Equity

High ROE: 523385's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Nilkamal's financial position?


Financial Position Analysis

Short Term Liabilities: 523385's short term assets (₹8.6B) exceed its short term liabilities (₹2.4B).

Long Term Liabilities: 523385's short term assets (₹8.6B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: 523385's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: 523385's debt to equity ratio has reduced from 45.4% to 6.1% over the past 5 years.

Debt Coverage: 523385's debt is well covered by operating cash flow (436.6%).

Interest Coverage: 523385's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Inventory Level: 523385 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523385's debt is covered by short term assets (assets are 14.1x debt).


Next Steps

Dividend

What is Nilkamal's current dividend yield, its reliability and sustainability?

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 523385's dividend (1.41%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 523385's dividend (1.41%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: 523385's dividend payments have been volatile in the past 10 years.

Growing Dividend: 523385's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.8%), 523385's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 523385's dividends in 3 years are forecast to be thoroughly covered by earnings (13.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Hiten Parekh (56yo)

4.33s

Tenure

₹36,667,606

Compensation

Mr. Hiten V. Parekh has been Joint Managing Director of Nilkamal Limited since November 2, 2015 and has been its Executive Director since December 9, 1985. Mr. Parekh is an Industrialist with enriched and  ...


CEO Compensation Analysis

Compensation vs Market: Hiten's total compensation ($USD486.48K) is above average for companies of similar size in the Indian market ($USD336.89K).

Compensation vs Earnings: Hiten's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hiten Parekh
Joint MD & Executive Director4.33yrs₹36.67m13.95% 2.1b
Sharad Parekh
MD & Executive Director29.75yrs₹37.37m0.69% 102.4m
Manish Parekh
President19.92yrs₹36.63m11.31% 1.7b
Nayan Parekh
President19.92yrs₹36.19m14.98% 2.2b
Paresh Mehta
Chief Financial Officerno data₹12.60mno data
Priti Dave
Company Secretary & Compliance Officerno data₹1.89mno data

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: 523385's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiten Parekh
Joint MD & Executive Director4.33yrs₹36.67m13.95% 2.1b
Sharad Parekh
MD & Executive Director29.75yrs₹37.37m0.69% 102.4m
Manish Parekh
President19.92yrs₹36.63m11.31% 1.7b
Nayan Parekh
President19.92yrs₹36.19m14.98% 2.2b
Kuttalam Ramamoorthy
Independent Non-Executive Director16.42yrs₹515.00kno data
Mahendra Doshi
Independent Non-Executive Director29.25yrs₹505.00k0.048% 7.1m
Hiroo Mirchandani
Independent Non-Executive Director5.33yrs₹300.00kno data
Vamanrai Parekh
Chairmanno data₹425.00k0.69% 102.2m
Mufazzal Federal
Independent Non-Executive Director9.17yrs₹505.00kno data
S. Palekar
Independent Non-Executive Director7.92yrs₹250.00kno data

19.9yrs

Average Tenure

69yo

Average Age

Experienced Board: 523385's board of directors are seasoned and experienced ( 19.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 523385 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nilkamal Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nilkamal Limited
  • Ticker: 523385
  • Exchange: BSE
  • Founded: 1934
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: ₹14.790b
  • Shares outstanding: 14.92m
  • Website: https://www.nilkamal.com

Location

  • Nilkamal Limited
  • Nilkamal House
  • Plot 77/78
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523385BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
NILKAMALNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

Nilkamal Limited, together with its subsidiaries, manufactures and sells plastic products primarily in India. It operates in two segments, Plastics; and Lifestyle Furniture, Furnishings and Accessories. The company offers various material handling products, including plastic crates and pallets, insulated ice boxes and fish tubs, waste management tools, road safety products, hospitality solutions, aquaculture fish cages, manhole chambers, ripening solutions, material handling equipment, and metal shelving and racking systems. It also provides plastic chairs, mattresses, polypropylene structured boards, dining tables, and plastic storage solutions for bedroom, dining, and living rooms, as well as for office seating, desking, and storage solutions. In addition, the company operates 19 retail stores under the @home brand name and 11 shop-in shop stores. The company sells its products through retail stores, dealers’ outlets and institutions, and online shopping sites. It also exports its products to approximately 30 countries. Nilkamal Limited was founded in 1934 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 12:44
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.