Tuesday, July 5, 2011

NILKAMAL LTD / WIM PLAST LTD - Due for a Re- rating .

Even if there is different  opinions on Plastic , consumption of the same is surging every year. Convenience and low cost is the main reason for the growth of this sector .There is lot of plastic related product manufacturers in our country especially in unorganized sector.But they are not much bothered about branding and value addition.Nilkamal and Wimplast are two big players in branded and value added category in India . On conventional valuation parameters both these companies are qualifying for an  investment.Currently many of the companies from this sector other than VIP Industries are ignored by the market players . Both these company's financials are very solid and paying good dividend . I feels , in future there is every chance for a re rating in these companies as happened in kitchenware companies like TTK Prestige and Hawkins... Indian consumption theme is expected to auger well for these companies too in long run.

Wimplast - makers of CELLO brand -posted a turnover of Rs.158 Cr and a net profit of Rs.18 Cr . On an equity base of Rs.6 Cr it posted an EPS of Rs.30 in FY 2011. At current market price of Rs.200/-,Wimplast is trading at a P/E multiple of  6.6

Nilkamal  is the biggest player which posted a turnover of Rs.1252 Cr and a net profit of Rs.52 Cr . On an equity base of Rs.15 Cr it posted an EPS of Rs.37 in FY 2011.Company is rapidly expanding and its retail venture named @Home ( a one stop shop for all home needs) posted turnaround performance in FY 2011.

Both these company's are suitable for investors with medium to long term. Keep watching the raw material cost which is subject to the changes in crude price

CMP of Wimplast is Rs.202/- and Nilkamal is Rs.264/-


  1. I've been waiting for Wimplast to catch the market's fancy for a very very long time... ;)

  2. hi vp,
    whatis your take on lecs now?

  3. If company's growth continuous , it should happen ultimately . :)

  4. Hi Siva

    You mean Lakshmi Electric Control ? . If so , next one year may be bit tough but promoter buying from open market is expected to arrest slide in share price.


  6. what is your view on national steel and agro?

  7. Dear sirji,
    what is your suggestion about Indo Asian Fuse . board is meeting on 9th for buy back of shares on 9th.
    Book value around 230. cmp 81.

    is it a good bet for short/long term.

    awaiting your valueable view.
    thanks in advance.

  8. Can u pl gv ur views in JOONKTOLLEE TEA
    Thank u

  9. hi vp!
    is this the right time to buy sika inter plant systems?

  10. Hey Value-picks,

    I think entire brokers & so called hidden gems founder are following your blog.

    As soon you post any stock ..next day it is recommended by lots of brokers and SP tulsian is the first one ..to make it public ..

  11. Hi Value-Pick,

    I purchased Gandhimati @217 and today it is 300, couldnot purchase earlier, as this was the time around, i came to know about your blog, please can u tell me shall i hold/accumulate or sell it at this rate.

    Also please let me know ypour views on
    Gujarat Automotive Gears Ltd.
    and Tokyo Plast.

    I see your blog free from all dilutions, genuine and one of the best, i would personally rate it among the top 3 of all blogs i have read so far.

  12. dear sir,

    what infrastructure script are you recommending presently?.

  13. Sorry.. Not tracking National Steel

  14. Future of Indo asian is depends on the managements ability to scale up the remaining business. May consider liimited exposure if you have a long term view.

  15. Sika is expanding their operations , need much patience

  16. Not deserves even a comparison with the big fish

  17. Dear DUSIANT

    May book only partial profit in Gandhimathi



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