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