CAMLIN
 
  

 

SHARETIPSINFO >>Research Reports >>CAMLIN (18-11-2009)

 

LISTING
CMP
Rs 24
52 WEEK HIGH/LOW

Rs 31/ Rs 8

FACE VALUE
Rs 1
AVERAGE VOLUME
274987
MARKETCAP
Rs 134 crore

 

COMPANY OVERVIEW:
Camlin was established in the year 1931. It was incorporated by Mr. Dandekar. Over the years from just an ink manufacturer it has diversified into pain balm, specialty chemicals, gums, adhesives and many other related products. Company manufactures about 2000 types of products.


Distribution Networks:
Company has strong distribution network of 50000 retailers across the country.


PRODUCT MIX:


PRODUCT

SALES(In crores)

% of Total

Stationery(In numbers)

Rs 178.85 crore

61.33%

Chemical Products(In liters)

Rs 63.59 crore

21.80%

Chemical products(In numbers)

Rs 33.29 crore

11.41%

Stationery(In liters)

Rs 13.98 crore

4.79%

Others

Rs 1.87 crore

0.64%

KEY RATIONAL FOR INVESTMENTS:
Increase in Government expenditure on education will help the company in increasing the top line and bottom line.
It has turned around in FY08 on back of operational efficiency. This will help company good profit in the coming future.
Brand name ‘Camlin’ is household name in India.
Camlin is fine chemical division is planning to enter the European and US market.
Camlin has decided to incorporate a 100% subsidiary company for carrying out the new activity of setting up of pre-schools.
Company is eyeing turnover of Rs 500 crore by 2012.
Company is having various expansion plans.

SHAREHOLDING PATTERN:

 

 

NO. OF SHARES

% OF TOTAL

PROMOTERS

23307180

 

38.55%

 

INSTITUTION

12316610

 

20.70%

 

GENERAL PUBLIC

24376210

 

40.75%

 

GRAND TOTAL

60000000

 

100.00%

 

FINANCIAL:

 

 

31/03/06

31/03/07

31/03/08

31/03/09

TOTAL INCOME

204.15

197.07

214.36

283.66

EXPENDITURE

-193.45

-185.7

-199.79

-262.79

PBDITA

 

10.7

11.37

14.57

20.87

DEPRECIATION

-5.19

-3.85

-3.77

-4.35

PBIT

 

5.51

7.52

10.8

16.52

INTEREST

 

-5.73

-3.72

-2.61

-5.29

PBT

 

-0.22

3.8

8.19

11.23

TAX

 

0

-9.59

-2.77

-3.38

PAT

 

-0.22

-5.79

5.42

7.85

*Extraordinary items are not included.

Key Highlights:
Total Income grew at CAGR of 11.5%.
PBDITA grew at CAGR of 25%.
Company has shown turnaround in FY08 and is maintaining the profitability growth in FY09. PAT grew by 45% between FY08 and FY09.
RATIOS:

 

 

31/03/06

31/03/07

31/03/08

31/03/09

EPS

 

-0.03667

-0.965

0.903333

1.308333

PBDITA MARGIN

5.241244

5.769524

6.796977

7.3574

NPM

 

-0.10776

-2.93804

2.528457

2.767398

INTERSET COVER

0.961606

2.021505

4.137931

5.006061

Key Highlights:
Company is having healthy EPS of Rs 1.3. 45% rise in EPS as compared to FY08.
PBDITA margin is showing consistent increase from 5.2% in FY06 to 7.3% in FY09.
NPM moved in black from red in FY08 to 2.5% and thereafter remained flat.
Interest covers of less than 1 in FY06, Company today have healthy interest cover of 5.


COMPARISION OF Q2FY10 WITH Q2FY09:

 

 

Q2FY09

% CHANGE

Q2FY10

TOTAL INCOME

62.92

12.55%

 

70.84

EXPENDITURE

-59.76

 

 

-61.17

PBDITA

 

3.16

206%

 

9.67

DEPRECIATION

-1.03

 

 

-6.67

PBIT

 

2.13

 

 

3

INTEREST

 

-1.1

 

 

-1.27

PBT

 

1.03

 

 

1.73

TAX

 

-0.34

 

 

-0.18

PAT

 

0.69

125%

 

1.55

Key Highlights:
Total Income increased by 12.55%.
PBDITA surged by 206%.The exceptional increase is because of lower base.
PAT moved up by 125%.


VALUATION & OUTLOOK:
At CMP of Rs 24 stock is trading at 16X to trailing twelve month earning. Seeing the strong growth in the writing instrument segment we value the company at 24X. The fair value we arrive at is Rs 31.2.


CONCLUSION:
Investors with 6-8 months investment horizon could take position in the stock. The stock is value buy at this level.

 

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