Nilkamal Q3 Results Review - Subdued Performance Of @Home Weighed On Margin: IDBI Capital

IDBI Capital Report

Nilkamal Ltd.’s Q3 FY24 result was in-line with our estimate on net sales front, while margins were miss owing to higher than anticipated loss in @ Home segment. The company reported 7% YoY /2% YoY volume and value growth respectively in Q3 FY24.

Nilkamal racking business and @ Home segment is witnessing muted demand which marred overall earnings of the company. On a positive note, E-Commerce reported robust 43% YoY increase in net sales.

Nilkamal has 105 exclusive operative stores selling ready furniture, Mattresses etc and 27 @home stores at the end of Q3 FY24. Net sales increased by 6.5% YoY to Rs 8 billion, while Ebitda declined by 4.7% YoY to Rs 728 million.

The company reported net profit of Rs 294 million, lower by 11.5% YoY. We roll over to FY26E and maintain 'Hold' rating on the stock with a revised target price of Rs 2,412, assigning 18 times price earning ratio on FY26E.

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