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SHARETIPSINFO >>Research Reports >> KITPLY INDUSTRIES LTD
LISTING |
|
|
Rs 9.80 |
|
Rs 10 |
AVERAGE VOLUME |
132000 |
COMPANY OVERVIEW:
Kitply Industries Ltd was established in the year 1982. It is the biggest manufacturer of Plywood and Blackboard in the country. Kitply brand name is synonymous with plywood and enjoys high level of equity in the Indian market.
Company has five manufacturing facilities across the country. It has 30 sales offices to look after sales and distribution of the product. It distributes its product to final consumer through network of 1000 dealers spread across the country.
Company also has in-house research and technology in order to ensure better quality products to the customers.
Kitply has following products in the market:
Decorative Laminates
Plywood
Blockboard
Adhesives
PRODUCT MIX:
Product Name |
Sales (In crore) |
% of Total Sales |
Plywood & Boards |
Rs 92.14 |
94.92% |
Laminates |
Rs 3.68 |
3.78% |
Raw Materials |
Rs 1.23 |
1.23% |
Fire Woods |
Rs 0.04 |
0.04% |
INDUSTRY OUTLOOK:
Plywood industry is Rs 8000 crore industry in India. It is expected to show double digit growth. As the disposable income of the people in the country is increasing the demand for decorative product will increase. We also expect margin to improve because of increase in the prices of plywood. The supply demand mismatch is driving the prices up.
INVESTMENT RATIONAL:
Company is the largest producer of plywood in the country.
Company`s financial performance is improving on QoQ basis.
Increase in the prices of plywood will help in realizing better margin.
We expect the company to turnaround next fiscal.
Company is chalking out expansion plan.
SHAREHOLDING PATTERN:
|
NO. OF SHARE |
% OF TOTAL |
PROMOTERS |
12042936 |
|
35.35% |
INSTITUTION |
1037590 |
|
3.00% |
GENERAL PUBLIC |
21033988 |
|
61.65% |
GRAND TOTAL |
34114514 |
|
100.00% |
COMPARISION OF Q2FY2010 WITH Q3FY2010:
|
|
Q2FY10 |
% CHANGE |
Q3FY10 |
TOTAL INCOME |
19.73 |
21.33806386 |
23.94 |
EXPENDITURE |
-22.52 |
|
-25.7 |
PBDITA |
|
-2.79 |
36.91756272 |
-1.76 |
DEPRECIATION |
-0.51 |
|
-0.32 |
PBIT |
|
-3.3 |
|
-2.08 |
INTEREST |
|
-1.44 |
|
-1.47 |
PBT |
|
-4.74 |
|
-3.55 |
TAX |
|
0 |
|
0 |
PAT |
|
-4.74 |
25.10548523 |
-3.55 |
Key Highlights:
Total Income of the company has increased by 21.3% to Rs 23.94 crore on QoQ basis.
PBDITA of the company has improved by 36.9% to Rs (1.76) crore on QoQ basis.
PAT of the company has improved by 25.1% to Rs (3.55) crore on QoQ basis.
VALUATION & OUTLOOK:
The outlook of the company looks good at present. We expect the company to turnaround In FY11. Though looking at the financial the stock may not be liked but with demand looking good and margins increasing, we feel the stock is worth accumulating at the current level. We feel stock has the potential to give 40% return from the current level.
Company’s brand Kitply is very household name. The name can be utilized to launch different product and will get easy acceptance. Investors with good risk appetite can accumulate the stock at current level. The investment horizon should be 6-8 months.
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