Nilkamal Q1 Results Review - Weak Demand, Lower NSR Weighed On Earnings: IDBI Capital

IDBI Capital Report

Nilkamal Ltd.’s Q1 FY25 result was below our estimates on all key parameters. After a dismal FY24, Q1 performance was marred by weak demand at retail as well as institutional end.

Nilkamal’s continued investment in branding exercise including celebrity led endorsement and deepening its market presence by onboarding new channel partners including large furniture outlet will support the company to achieve high growth trajectory.

Net sales was down by 5.2% YoY to Rs 7.4 billion, while Ebitda declined by 24.2% YoY to Rs 563 million. The company reported net profit of Rs 183 million, lower by 43.5% YoY.

We have marginally cut our net sales/PAT estimates for FY25E/FY26E. Maintain Hold rating on the stock with a revised target price of Rs 1,996 (earlier target price Rs 2,116), assigning 20 times PER on FY26E.

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