Background:
Promoted by Parekh family, Nilkamal is one of the leading companies engaged in manufacturing injection moulded plastic products. It manufactures and markets injection moulded plastic products like furniture, material handling equipment, custom mouldings & OEM supplies for specific customers. It has manufacturing facilities at seven locations across India with a combined production capacity more than 75,120 MTPA. Nilkamal operates with 33 regional offices and 24 warehouses situated all across India. It has wide distribution reach with 77 warehouses; 1,400 distributors; 42 branch & regional offices. The company exports its products to Europe, US, Middle East, Far East countries, African countries and Asia.
The Company has advanced machinery in Injection Moulding, Rotational Moulding, Vaccum Forming, Polyurethane Injection (of insulation) and capabilities for SMC and Blow Moulding.
Product Manufactured / Services Offered :
Injection Moulded Crates, Roto Moulded Crates, Customized Crates, Corrugated PP Crates, Insulated Icebox / Shipper, Vacuum Formed Crates, Wash Crates, Automated Industrial Storage & Retrieval Systems, Custom Moulding, Industrial Pallets, Waste Management System Bins, Material Handling Solutions, Intralogistic Warehouse Solutions.
Investment Rationale: Pioneer in Plastic Business Diversified Product Portfolio and wide customer base Pan-India Distribution Reach Solid Brand Equity—Nilkamal and @ home Strong focus on Product Design and Development Stretagic tie ups with International Players Robust Financial Performance
Outlook & Valuation: The stock is currently trading at TTM PE of 5.8 and P/BV of 0.87. The compay having strong market presence and strong brand value which will continues to dominate the industry in its plastic business. We also expect rise in volumes, new products launching of home decors and many value added products by its one of well known brand “@ home” will drive its revenues. We recommend our Investors / Positional traders to “ACCUMULATE” the Nilkamal Limted for the Target of Rs. 280-300 with keeping strict Stop Loss of Rs. 225 on closing basis. Investment horizon would be 3-4 months.
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