Nilkamal Limited Stock Research

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Nilkamal Limited Detail

Nilkamal Limited is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Plastics sector.

As per the Company website it  the world’s largest producer of moulded plastic furniture. It sells its products in more than 30 countries from US, Australia, and countries in Africa and South America.

Below are different product categories from the Company

  • Furniture
    • Products like Tables, Chairs etc
    • Company has 70+ stores, 20,000+ retail dealers and 1100+ distributors
  • Mattrezzz
    • Curated range of sleeping pattern-specific products.
    • Products like Side sleepers, Ortho Matterezzz etc
  • Bubbleguard
    • It is a multi-layer polyproplyne board.
    • It help with protection, packaging, printing and paneling.
    • It find usage in industries like construction, automotive, steelworks, furniture, F&B, advertising, decor and logistics
  • Material handling
    • It offers Plastic Crates, Plastic Pallets, Insulated Ice Boxes & Fish Tubs, Waste Management Tools, Road Safety Products, Hospitality Solutions, Aquaculture Fish Cages, Manhole Chambers, Ripening Solutions, Material Handling Equipment, Metal Shelving & Racking Systems.
  • @Home
    • It is the retail division of Nilkamal Limited, with 19 stores across 13 cities
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It has a Joint Venture with BITO Lagertechnik Bittman GmbH, Nilkamal Bito Storage Systems Private Limited for manufacturing of regular, semi-automated and fully automated Storage Systems in metal.

It has Joint Venture with CAMBRO, Cambro Nilkamal Private Limited for Hospitality Products suited for large Restaurants and Hotels.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Nilkamal Limited Stock Performance

The stock is a multi baggar in its own right as it has given more than 60 times return if you take absolute starting and end price in above price graph. Though the stock has long periods of non performance in between.

Majority of time it has traded below 500 mark. The stock performed well from 2002 to 2008 and then it performed poorly after global crisis. It also performed poorly from year 2011 to 2014 trading below 100 INR.

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Majority of price action came recently when it gave more than 10 times return in short span of time. It also gives more than 1% dividend at current market price which is excellent for any Company.

Nilkamal Limited My Opinion

Nilkamal Limited is a Plastics Company. It is largest plastics furniture Company in World. The Company has also started venturing into new space like Specially created mattress and material handling. These two initiatives will increase scope of the Company.

Plastics furniture of household items have replaced other metals and wood counter parts over the years. The reason being cheaper and better than other two alternatives. There will be demand for plastics products in market till there is other alternative available which is environment friendly as well as can be mass produced keeping prices light. But this is distant dream as of now.

Till that time this sector will continue to grow. Currently this is largely unorganized sector in India. There are numerous local players which are catering local market and have price advantage. People will slowly shift towards the organized players as they eat up market share of smaller players.

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I have not invested into this sector as of now. I will be comparing different Companies from this sector and then make up my decision. As of now this one is not in my portfolio. But I will definitely track this Company.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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