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Nilkamal Q1 Review - Impressive Performance, Expensive Valuation: IDBI Capital

Nilkamal Q1 Review - Impressive Performance, Expensive Valuation: IDBI Capital

<div class="paragraphs"><p>A chair on display manufactured by Nilkamal Ltd. (Source: Company website).</p></div>
A chair on display manufactured by Nilkamal Ltd. (Source: Company website).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Nilkamal Ltd.’s Q1 FY22 result was below our estimates on key parameters.

After a robust demand recovery in Q4 FY21, statewise lockdown amid second wave of Covid-19 weighed on product off take.

However, on a low base of Q1 FY21, earnings improvement is encouraging.

Net sales shot up by 96% YoY to Rs 4,923 million, while Ebitda came at Rs 299 million, up by 398% YoY.

Nilkamal reported net profit of Rs 17 million compared to net loss of Rs 289 million in Q1 FY21.

We believe the company is poised to rebound as opening up of economies and pent up demand would aid earnings growth in near term.

Click on the attachment to read the full report:

IDBI Capital Nilkamal Q1FY22 Result Update.pdf

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