Nilkamal Q4 Results Review - Subdued Quarterly Performance Marred By Weak Demand: IDBI Capital

IDBI Capital Report

Nilkamal Ltd.’s Q4 FY24 result was below our estimates on all key parameters. After a subdued 9M FY24, the company’s Q4 too disappointed us on key operational metrics. The management attributed degrowth in earnings to overall weak demand in plastic furniture segment.

Further, @ Home’s performance was suppressed too, weighing on overall performance. Net sales was marginally higher by 0.6% YoY to Rs 8.3 billion, while Ebitda declined by 16.1% YoY to Rs 815 million.

Nilkamal reported net profit of Rs 356 million, lower by 26.3% YoY. We have cut our net sales/profit after tax estimates by 3.9%/4.1% and 7.7%/7.1% over FY25E/FY26E respectively.

Maintain Hold rating on the stock with a revised target price of Rs 2,116 (earlier target price Rs 2,412), assigning 17 times PER on FY26E.

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