Nilkamal Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock' Lowers Target Price — Here's Why

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IDBI Capital Report

Nilkamal Ltd.’s Q3 FY25 result was in-line with estimate on net sales front, while margins disappointed. Amid subdued net sales growth over Q3 FY24, cost escalation on raw material, employee and higher expenditure on brand building eroded operating margin of the company.

In Q3 FY25, the company reorganized and rebranded its retail division to 'Nilkamal Homes' under the mother brand of 'Nilkamal' and accordingly revised the segment disclosure as Business to Business and retail and E-commerce (Retail).

Net sales was up by 6.3% YoY to Rs 8.5 billion, while Ebitda was down by 12.9% YoY to Rs 634 million. The company reported net profit of Rs 216 million, lower by 26.4% YoY.

We have cut our earnings estimates for FY25E/FY26E and introduce FY27E earnings. Maintain Hold with a revised target price of Rs 1,917 (earlier target price Rs 2,108), assigning 20 times PER on FY27E.

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