Free Essay

Stock to Invest in Nse

In:

Submitted By nitesh
Words 1323
Pages 6
Best Stock to Invest under 1000 Cr Market-Cap (Nilkamal Ltd)

Nilkamal Ltd is principally engaged in manufacturing of injection moulded plastic products, currently it operates with three segments namely plastics, lifestyle furniture, furnishings accessories and storage system others. The plastics segment engaged in manufacturing of injection moulded plastic articles, polymers and others. The lifestyle furniture, furnishings accessories is engaged in manufacturing of home furniture, home furnishing and accessories. The storage system others is engaged in metal storage systems. The Group also sells lifestyle home furniture, furnishings, home decor and accessories through its own lifestyle retail stores in the name of home. The Group has seven large manufacturing plants in India having JVs with domestic and International companies, In India with Bito Lagertechnik Bittman GmbH for the manufacture of Material Handling and Storage Systems in Metal and globally in Sri Lanka, and Bangladesh, where both these companies are Leaders in respective markets for Moulded Furnitures.

High/Lows & Performance of Nilkamal Ltd. | Duration | One Week | Two Week | One Month | Three Months | Six Month | One Year | Period Old Price | 241.40 | 224.60 | 219.95 | 229.60 | 225.85 | 260.35 | Price Gain | 9.85 | 26.65 | 31.30 | 21.65 | 25.40 | -9.10 | Price Gain in % | 4.08 | 11.87 | 14.23 | 9.43 | 11.25 | -3.50 | Period's High | 261.90 | 261.90 | 261.90 | 261.90 | 261.90 | 309.90 | High On | 22/10/2012 | 22/10/2012 | 22/10/2012 | 22/10/2012 | 22/10/2012 | 04/11/2011 | Period's Low | 240.00 | 217.30 | 211.00 | 200.55 | 200.55 | 180.00 | Low On | 18/10/2012 | 11/10/2012 | 28/09/2012 | 07/09/2012 | 07/09/2012 | 21/12/2011 |

Investment Rational

- 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

Dominant player with the comprehensive product portfolio
Nilkamal has the strong brand recognition in manufacturing of module furniture and material handling, with the market share of around 39% in moulded furniture business Nilkamal is enjoying a strong leadership position with a lead of nearly two times of its closest competitor. Over the past years company with the help of its in‐house manufacturing and strategic tie‐ups it is providing comprehensive products to meet the diverse needs of industrial sector also. Company is further looking to expand its product range by launching ready‐to‐assemble furniture products and office seating solutions. In Material Handling Equipment Business, also company is looking to Leverage its existing relationships and strategic global tie‐ups to cater to a wider range of industries.

Opening additional store to expand its network across the India…
Nilkamal has wide distribution network, which is facilitated by 77 warehouse, 1,400 distributor, and 42 branch regional offices. Company also operates in retailing by offering lifestyle products under the brand name of home in which it offers a wide range of home décor products including furniture, soft furnishings, accessories modular kitchens, company also provides free expert advice on home interior using advanced 3‐D software. Currently its has 17 stores spread across 12 cities, covering an aggregate carpet area of 289,467 sq.ft, further to expand its retailing business it has planned to open an additional 33 stores over the next five years.
Development of new products & services will help to add volume growth …

Last year company has launched new products in the roto moulded, vacuum formed, blow moulding, PU filled insulated segments and these innovative products have been received well in the market. Further while keeping in the mind the increase of Govt spending in the areas of disposal management road safety the company will also concentrate its efforts on new products in these segments. Apart from this, the company is also in the process of developing a product as well as services to be offered in the building construction segment. The Company will start selling light, easy‐to‐erect quick‐to‐dismantle injection molded plastic formwork systems with a lower cost of ownership compared to the wood metal formwork that is ubiquitously used in construction projects today.

Valuations & Recommendations

The stock is currently trading at PE of 5.7x of its projected EPS of Rs 40.79 for FY13E and 0.85x of its current book value. Being one of the dominant players in module furniture and material handling equipment, company will continue to maintain its leadership in domestic markets. Furthermore, the company is going expand its distribution network by opening new branches, warehouses and retail stores across the country, apart from this company is also in the process of developing new products services under the building construction segment. Hence, Nilkamal is having the positive outlook and strong revenue visibility in upcoming periods.

Years | Mar-12 | Mar-11 | Mar-10 | Mar-09 | Mar-08 | Debt-Equity Ratio | 0.9 | 1.0 | 1.2 | 1.4 | 1.4 | Long Term Debt-Equity Ratio | 0.2 | 0.3 | 0.5 | 0.6 | 0.4 | Current Ratio | 1.2 | 1.3 | 1.4 | 1.3 | 1.2 | Fixed Assets | 2.9 | 2.9 | 2.6 | 2.5 | 2.9 | Inventory | 6.6 | 7.5 | 7.9 | 7.0 | 8.0 | Debtors | 9.6 | 10.2 | 9.8 | 8.8 | 9.2 | Interest Cover Ratio | 2.8 | 3.3 | 3.2 | 1.4 | 2.0 | PBIDTM (%) | 9.2 | 9.3 | 11.0 | 9.0 | 9.6 | PBITM (%) | 6.8 | 7.0 | 8.3 | 6.0 | 7.0 | PBDTM (%) | 6.8 | 7.2 | 8.4 | 4.7 | 6.2 | CPM (%) | 5.9 | 6.0 | 6.8 | 4.0 | 5.2 | APATM (%) | 3.4 | 3.7 | 4.1 | 0.9 | 2.5 | ROCE (%) | 15.5 | 16.8 | 18.6 | 12.1 | 15.5 | RONW (%) | 14.6 | 17.3 | 20.4 | 4.6 | 13.3 | PE | 5.9 | 8.7 | 7.1 | 10.1 | 4.3 | EBIDTA | 151.2 | 133.2 | 128.0 | 87.2 | 131.8 | DivYield | 1.9 | 1.3 | 1.9 | 4.5 | 3.4 | PBV | 0.8 | 1.3 | 1.3 | 0.3 | 1.2 | EPS | 36.6 | 34.5 | 36.1 | 4.4 | 43.8 |

Financials ‐ Standalone

Over the last five years (FY07‐FY12) the Top Line of Nilkamal has grown at annual CAGR of 25%, the operating profit of the company grew at 38% while profit after tax for the same period also grew at phenomenal rate of 52%. In FY12, the Net Sales of the company grew by 14.34% to Rs 1424.14 crore over FY11, Operating Profit surged 15.08% to Rs 148.72 crore while owing to higher interest depreciation cost during the same period the PAT grew at 6% to Rs 55.60 crore.
In Q1FY12, the company net profit declined to 8.16% to Rs. 11.26 crores in the quarter ended June 2012 as against Rs.12.26 Crore during the previous quarter ended June 2011.But sales roses 22.2% to Rs.390.75 Crores in the Quarter ended June 2012 as against Rs. 319.77 Crores in previous same quarter.

Particulars | Quarter Ended | | Jun. 2012 | Jun. 2011 | % Var. | Sales | 390.75 | 319.77 | 22 | OPM % | 9.70 | 10.62 | -9 | PBDT | 27.08 | 25.84 | 5 | PBT | 15.69 | 16.57 | -5 | NP | 11.26 | 12.26 | -8 |

Conclusion –

The company having strong market presence and strong brand value which will continues to dominate the industry in its plastic business. The stock is currently trading (23rd Oct) with P/E ratio of 6.87 & P/B Ratio of 0.94 . The overall Debt-Equity ratio is diminishing, EBIDTA & EPS is rising. It would be good stock with a horizon of 6 months to 1 year. Investors may wait for some dip before entering in stock , although its attractive even with current valuation.

Similar Documents

Premium Essay

E-Commerce in Security Market

...E-COMMERCE IN SECURITY MARKET (Source: Most of the Data & charts from NSE website) A) ABOUT E-COMMERCE World Trade Organisation (WTO) defines E-Commerce as “the production, distribution, marketing, sale or delivery of goods and services by electronic means”. The strategic benefit of making a business ‘e-commerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas: ➢ Document preparation ➢ Error detection and correction ➢ Reconciliation ➢ Mail preparation ➢ Telephone calling ➢ Data entry ➢ Overtime ➢ Supervision expenses Further, it enables - ➢ Easy reach to a fast growing online community ➢ Unlimited shelf place for products and services ➢ Fuse the global geographical and time zone boundaries ➢ Reach national and global markets at low operating costs The sudden spurt in growth of e-commerce in India is felt due to the following favourable factors: ➢ Rapidly increasing Internet user base ➢ Technology advancements such as VOIP (Voice-over-IP) have bridged the gap between buyers and sellers online ➢ The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and E-Commerce vendors ➢ Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds, identity thefts and phishing ➢ Longer reach - Consumers in the Tier II & Tier III cities...

Words: 4102 - Pages: 17

Free Essay

Investment Analysis

...Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare as required in the assignment. In this report the author collects financial and statistical data of these companies and analyse them to make reasonable comments on the above companies (CACEIS, 2010). 2.0. Calculations of returns of stocks: Calculation of daily and monthly return of different companies shows in the Excel Sheet 1,2 3,4,5 and 6 [Available from:...

Words: 2176 - Pages: 9

Premium Essay

Stock

...CONTENTS 1. INVESTMENT BASICS.......................................................................................................7 What is Investment?...................................................................................................................7 Why should one invest? .............................................................................................................7 When to start Investing?...........................................................................................................7 What care should one take while investing?......................................................................8 What is meant by Interest?......................................................................................................8 What factors determine interest rates?...............................................................................8 What are various options available for investment?......................................................9 What are various Short-term financial options available for investment?.............9 What are various Long-term financial o ptions available for investment?............10 What is meant by a Stock Exchange?................................................................................11 What is an ‘Equity’/Share?......................................................................................................11 What is a ‘Debt Instrument’?.....................................

Words: 26421 - Pages: 106

Premium Essay

Cerc

...A PROJECT REPORT ON “Analysis of derivative segment (Future & Options Market) of capital market” SUBMITTED BY: RAVINDER SINGH NEGI NRS/011304 In the partial fulfillment of the requirement as per THE INSTITUTE OF COST AND WORKS ACCOUTANT OF INDIA Institute of Cost and Works accountant of India Delhi Office 3, Institutional Area Lodhi Road, New Delhi - 110003 Phones: 011-24622156, 24521492 Fax: 011-43583642, 24622156, 24618645 DECLARATION I hereby declare that the Project report has been prepared by me during the year 2011. In partial fulfillment of the requirement for the award of the degree of Institute of Cost and Works Accountant of India (NIRC). Ravinder Singh Negi Place:--New Delhi Date:--...

Words: 5208 - Pages: 21

Premium Essay

“to Study the Dynamic Relationship Among Fiis, Mutual Fund Equity Investment and Other Selected Variables with Nifty”

...A SUMMER INTERNSHIP PROJECT ON “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms.Swapna Nair Mr. Mukesh Vishwakarma Assistant Professor Branch Manager Submitted by Mr. Kalpesh R. Ukani [Batch No. 2014-16, Enrollment No. 147500592114] MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT – 750 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad July, 2015 Company Certificate This is to certify that Mr. Kalpesh R. Ukani from S.R. LUTHRA INSTITUTE OF MANAGEMENT, have carried out the research on the subject titled “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” at ICICI SECURITIES under the supervision of Mr. Mukesh Vishwakarma, from 8th June 2015 to 17th July, 2015. I also certify that, the above mentioned student has carried the research work satisfactorily. Place: - Surat Date: - _________ Mr. Mukesh Vishwakarma (Branch Manager) Student’s Declaration I, Mr. Kalpesh R. Ukani , hereby declare that the report for Summer Internship Project entitled “TO STUDY THE DYNAMIC RELATIONSHIP...

Words: 14155 - Pages: 57

Premium Essay

Various Investment Avenues

...decisions. Types of investor In continuation of the lessons I’ve learned from Rich Dad Poor Dad author, Robert Kiyosaki, I will discuss today what he called “Types of Investors.” According to him, there are two main types of investors: Average Investors and Professional Investors. Average investors - buy packaged securities such as mutual funds, treasury bills, or real-estate-investment trusts. Professional investors - are more aggressive—they create investment opportunities or get in on the ground floor of new offerings, build businesses and marketing networks, assemble groups of financiers to fund deals too large for them to undertake alone, and pick the companies with the most promise for initial public offerings of stock. INVESTMENT AVENUES IN INDIA There are a large number of investment instruments available today. To make our lives easier we would classify or group them under 4 main types of investment avenues. We shall name and briefly describe them. Financial securities: These investment instruments are freely tradable and negotiable. These would include equity shares, preference shares, convertible debentures, non-convertible debentures, public sector bonds, savings certificates, gilt-edged securities and money market securities. Non-securities financial securities: These investment instruments are...

Words: 22545 - Pages: 91

Premium Essay

Basic Financial Market Concepts

...Handbook on Basics of Financial Markets NATIONAL STOCK EXCHANGE OF INDIA LIMITED Basics of Financial Markets What is Investment? The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment. Why should one invest? One needs to invest to: earn return on your idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past. For example, if there was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a factor in any long-term investment strategy. Remember to look at an investment’s ‘real’ rate of return, which is the return after inflation. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value. For example, if the annual inflation rate is 6%, then the investment will need to earn more than 6% to ensure it increases...

Words: 4352 - Pages: 18

Premium Essay

Dirivatives

...Derivatives Trading and Its Impact on the Volatility of NSE, India GEL : G10, G14, G20, G19 ABSTRACT This article examines the impact of introduction of financial derivatives trading on the volatility of Indian stock market (an emerging stock market). It examines the theme that the introduction of derivatives in the stock market in India would reduce the volatility (risk) in the stock market. NSE Nifty 50 index has been used as a proxy of stock market return. ARCH/GARCH technique has been employed in the analysis. The conditional volatility of interday market returns before and after the introduction of derivatives products are estimated with the (GARCH) model. The Finding suggests that derivatives trading has reduced the volatility. Executive Summary Derivatives trading in the stock market have been a subject of enthusiasm of research in the field of finance the most desired instruments that allow market participants to manage risk in the modern securities trading are known as derivatives. The derivatives are defined as the future contracts whose value depends upon the underlying assets. If derivatives are introduced in the stock market, the underlying asset may be anything as component of stock market like, stock prices or market indices, interest rates, etc. The main logic behind derivatives trading is that derivatives reduce the risk by providing an additional channel to invest with lower trading cost and it facilitates the investors to extend their settlement...

Words: 10602 - Pages: 43

Premium Essay

Projct

...CONTENTS 1. INVESTMENT BASICS....................................................................................................... 7 What is Investment?...................................................................................................................7 Why should one invest? .............................................................................................................7 When to start Investing?...........................................................................................................7 What care should one take while investing?......................................................................8 What is meant by Interest?......................................................................................................8 What factors determine interest rates?...............................................................................8 What are various options available for investment?......................................................9 What are various Short-term financial options available for investment?.............9 What are various Long-term financial o ptions available for investment?............10 What is meant by a Stock Exchange?................................................................................11 What is an ‘Equity’/Share?......................................................................................................11 What is a ‘Debt Instrument’?..............................................

Words: 26374 - Pages: 106

Free Essay

Comparative Analysis of Four Stock Broking Company

...INTRODUCTION Every company want to earn maximum profit as well as satisfaction of consumer by providing best Quality product, Service, etc. So company produce product with best quality & free of complaints. The main reason to undertake this study is doing “comparative study of four stock broking companies of gandhinagar with reference to SSJ FINANCE”. The other three companies include ANGELBROKING,SWASTIKA INVESTMART & SHAREKHAN. The comparision include SWOT analysis of these four companies & also interms of services,activation charges,amc etc. In present booming situation all people are by one way or by other thinks about the developmental changes that occurred in recent past month in this situation those who are really remains in touch with per second activity are the broker who knows where people are investing they offers outstanding services like SSJ Finance & security pvt ltd ,angel broking etc at less brokerage don’t you thing all these are wonders! Yes, it is because risk management they have in well regulated market economy. One prudent investor can also get a secure investment with his financial planning and well diversified portfolio investment in this report you will realize certain best judgmental, analytical, and risk awarse nature from both risk management and portfolio investment threw equity derivatives. Savings form an important part of the economy of any nation. With the savings invested in various options available to the people...

Words: 9502 - Pages: 39

Premium Essay

Indian Market

...history of the capital market in India dates back to the eighteenth century, one of the oldest in Asia; When East India Company securities were traded in the country. Until the end of the nineteenth century securities trading was unorganized and the main trading centres were Mumbai and Calcutta. Of the two, Bombay was the chief trading centre wherein bank shares were the major trading stock During the American Civil War (1860-61). Bombay was an important source of supply for cotton. Hence, trading activities flourished during the period, resulting in a boom in share prices. This boom, the first in the history of the Indian capital market lasted for a half a decade. The bubble burst on July 1, 1865 when there was tremendous slump in share prices. Trading was at that time limited to a dozen brokers; their trading place was under a banyan tree in front of the Town hall in Mumbai. These stock brokers organized informal association in 1897 – Native Shares and Stock Brokers Association, Bombay. The Stock exchanges in Calcutta ad Ahmedabad also industrial and trading centers, came up later. The Bombay Stock Exchange was recognized in May 1927 under the Bombay Securities Contracts Control Act, 1925. The capital market was not well organized and developed during the British rule because the British government was not interested in the economic growth of the country. As a result many foreign companies depended on the London capital market for funds rather than in the Indian capital market...

Words: 2083 - Pages: 9

Premium Essay

Education

...QUESTIONNAIRE : Hello Sir / Madam This survey aims to find out the present and the future scenario of e-Broking in stock market. This survey is carried out purely for the academic purpose. It will remain highly confidential. Hope you would spend your valuable time in going through the questionnaire and filling it up. Your kind contribution is heartily acknowledged. In anticipation, Thanking you for your co-operation, ( Bhavesh Ghori ) 1)Are you aware about stock market ? □ Yes □ No 2)Do you invest ? □ Yes □ No 3)If yes, then in which alternative do you invest ? □ Gold □ Real Estate □ Stock Market □ Mutual Fund □ Bank FD □ RBI Bonds □ NSC etc… □ Others _______  4)Among the investment alternatives do you believe that shareMarket is one of the best options to invest in ? □ Yes □ No   5) In which Stock Broking House do you prefer to invest ? □ Angel □ Marwadi □ Share Khan □ Indiabulls □ ICICI □ India Infoline Others __________  6) Which mode of trading alternative do you use ? □ Online Trading □ Offline Trading 7) Are you aware about e-Broking ? □ Yes □ No ...

Words: 303 - Pages: 2

Premium Essay

Derivatives

...1. INTRODUCTION TO DERIVATIVES While, trading in derivatives products has grown tremendously in recent times, the earliest evidence of these types of instruments can be traced back to ancient Greece. Even though derivatives have been in existence in some form or the other since ancient times, the advent of modern day derivatives contracts is attributed to farmers’ need to protect themselves against a decline in crop prices due to various economic and environmental factors. Thus, derivatives contracts initially developed in commodities. The first “futures” contracts can be traced to the Yodoya rice market in Osaka, Japan around 1650. The origin of derivatives can be traced back to the need of farmers to protect themselves against fluctuations in the price of their crop. From the time it was sown to the time it was ready for harvest, farmers would face price uncertainty. Through the use of simple derivative products, it was possible for the farmer to partially or fully transfer price risks by locking-in asset prices. These were simple contracts developed to meet the needs of farmers and were basically a means of reducing risk. A farmer who sowed his crop in June faced uncertainty over the price he would receive for his harvest in September. In years of scarcity, he would probably obtain attractive prices. However, during times of oversupply, he would have to dispose off his harvest at a very low price. Clearly this meant that the farmer and his family were exposed...

Words: 4572 - Pages: 19

Premium Essay

Investor Preferences Towards Equity Market

...– 1 STOCK & EQUITY MARKET GLOBAL INSTITUTE OF MANAGEMENT | 1 INTRODUCTION ABOUT STOCK AND EQUITY MARKET GLOBAL INSTITUTE OF MANAGEMENT | 2 1.1 What is Stock ? In finance, a stock represents a share in the ownership of an incorporated company. In Industrial societies wealth used in production is owned in the aggregate mostly by Corporations rather than by individuals because of the huge investments required. This trend began in 17th-century England when merchants formed JOINT-STOCK COMAPNIES, pooling capital to be used jointly in trading and manufacturing. Participants then received dividends, shares of the common PROFIT proportionate to their original investments. The Definition of a Stock : Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. The wealth of individuals includes claims against, or investments in, corporations. These are called securities, the two most common being bonds and stocks. Corporate bonds are evidences of corporate debt to the bondholder. Stocks are evidences of ownership, or equity. GLOBAL INSTITUTE OF MANAGEMENT | 3 Investors buy stock in the hope that it will yield income from dividends and appreciate, or grow, in value. 1.2 History of Stock Market Indian Stock Markets...

Words: 12185 - Pages: 49

Premium Essay

Derivative in India

...1971, freeing exchange rates to fluctuate. Less developed countries like India began opening up their economies and allowing prices to vary with market conditions. Price fluctuations make it hard for businesses to estimate their future production costs and revenues. 2 Derivative securities provide them a valuable set of tools for managing this risk. This article describes the evolution of Indian derivatives markets, the popular derivatives instruments, and the main users of derivatives in India. I conclude by assessing the outlook for Indian derivatives markets in the near and medium term. 2. Definition and Uses of Derivatives A derivative security is a financial contract whose value is derived from the value of something else, such as a stock price, a commodity price, an exchange rate, an interest rate, or even an index of prices. In the Appendix, I describe some simple types of derivatives: forwards, futures, options and swaps. Derivatives may be traded for a variety of reasons. A derivative enables a trader to hedge some...

Words: 3841 - Pages: 16