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In this Long term call monthly 1-3 call given holding period 1-3yrs
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#EBITDA #GROWTH

In FY24, EBITDA increased by 30.7% YoY to โ‚น5,350 cr. The expansion has been owing to softening of raw material cost, price hikes and cost control measures adopted by the company. In 9M FY25, the EBITDA stood at โ‚น4,505 cr as compared to โ‚น3,957 cr and increased by 14% YoY. This was on account of favourable raw material prices, better product mix and cost saving initiatives.
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#PAT #GROWTH

In FY24, net profit increased by 38.1% YoY to โ‚น3,862 cr, driven by a rise in other income, decline in finance costs, and an enhancement in operating profits. PAT includes an impact of exceptional item as during Q1 FY24, it introduced a voluntary retirement scheme (VRS) and provided โ‚น160 cr for employees who have accepted to be part of VRS. In 9M FY25, the net profit was โ‚น3,439 cr v/s โ‚น2,845 cr in 9M FY24, an expansion of 24.5% YoY. This was led by increase in operating profits.
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#EBITDA #MARGIN

In FY24, the EBITDA margin increased by 218 bps and stood at 14.2% on account of better product mix, favorable raw material prices and price hikes. In 9M FY25, the EBITDA margin stood at 14.5%, up from 14% in 9M FY24. The ICE portfolio achieved an EBITDA margin of ~16%, driven by an improved product mix, lower material costs, and LEAP savings initiatives. Investments in the EV portfolio and brandbuilding efforts contributed to the current EBITDA margin levels.
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#PAT #MARGIN

PAT margin grew to 10.1% for the year majorly owing to rise in other income and decline in finance cost. In 9M FY25, the PAT margin was 11.1% v/s 10% in 9M FY24.
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#COMPANY #POTENTIAL

โ€ข As per the SIAM data, two-wheeler industry (domestic) recorded sale of 1,79,74,365 units in FY24 v/s 1,58,62,087 units in FY23 and exports was 34,58,416 units in FY24 as compared to 36,52,122 units in FY23. Key factors that led to this growth were festivals & a robust marriage season, new launches and rise in purchasing power. โ€ข In 9M FY25, the two wheelers industry sales was 1,50,39,570 units v/s 1,34,70,570 units in 9M FY24 showcasing an increase of 11.6% YoY. In CY24 (Jan-Dec 2024) the two wheeler industry (domestic) reported sales of 1.95 cr units of which, of which scooters sales was 66.8 lakh units, motorcycles at 1.2 cr units and mopeds at 5.2 lakh units v/s 1.71 cr units in CY23, of which scooters constituted 55.7 lakh units, motorcycles 1.1 cr units and mopeds at 4.7 lakh units. In Q3 FY25, the two wheeler industry sales was 48.8 lakh units v/s 47.3 lakh units in Q3 FY24, a rise of 3.2% YoY. (Source: Siam) โ€ข India exported 34.6 lakh units of two-wheelers in FY24, which was a decline of 5.3% YoY. For 9M FY25, the two-wheeler exports showcased steady growth. โ€ข The EV sales in FY24 was 9,44,126 units v/s 7,28,054 units in FY23. The penetration of EV two-wheelers for the year FY24 stood at ~5%. The sales during 9M FY25 was ~7.8 lakh units v/s ~6.4 lakh units in 9M FY24. (Source: SMEV) โ€ข In 2023, the global two-wheeler market was valued at $116.82 billion in 2023 and is projected to grow to US$123.54 billion in 2024 and US$215.96 billion by 2032.
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Hero MotoCorp Limited 3200-3550
Expected level 4200
Support 2900
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Nilkamal Limited Company Details Report

Nilkamal Limited is engaged mainly in
the business of furniture & home solutions, mattress, material handling solutions and allied products. It is an industry leader in the moulded furniture and material handling products with diversified product portfolio. The company caters to different industries and a large customer base including household customers, industrial customers and retail buyers. In Q3 FY25, the company has rebranded its retail division into 'Nilkamal Homes' under mother brand of 'Nilkamalโ€™. It revised the segment disclosures to Business to Business (B2B) and Retail & e-commerce. B2B segment includes sales to industrial customers and channel partners. Retail includes sales to customer from stores operating under Nilkamal brand and e-commerce. The company is also present in the mattress and bubble-guard business, which is relatively smaller in size. The company's manufacturing plants are located at Barjora (West Bengal), Bhiwandi and Sinnar (Maharashtra), Dharuhera (Haryana), Hosur (Tamil Nadu), Jammu (Jammu and Kashmir), Kharadpada and Vasona (Union Territory of Dadra and Nagar Haveli), Noida (Uttar Pradesh) and Puducherry (Puducherry). It has 1,100 distributors, 20,000+ dealers and 42 depots across India. Brand Nilkamal has created waves not only in India, but also in the international markets. From developed and sophisticated markets of North America and Australia, to developing markets in Africa, South America and Gulf Cooperation Council (GCC), Nilkamal products are available in as many as 30 countries.
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#SALES #GROWTH

In FY24, the sales grew by 2.1% YoY to โ‚น3,196 cr. The growth was mainly driven by 3% growth in plastic business. The @home business declined YoY due to drop in footfall at its physical stores. Under plastic business, the racking business reported degrowth YoY due to slump in demand from its large e-commerce customers along with the delay in civil projects of lndustrial customers. The mattress business reported sales of โ‚น125 cr (v/s โ‚น122 cr in FY23). The sales from e-commerce business grew by 22% YoY to โ‚น144 cr. In 9M FY25, the sales grew by 2.4% YoY to โ‚น2,419 cr (v/s โ‚น2,362 cr in 9M FY24). Segment wise, the business to business (B2B) segment grew by 4% YoY to โ‚น2,149 cr while, the retail & e-commerce segment declined by 8% YoY to โ‚น269 cr. In Q3 FY25, the sales grew by 6.3% YoY to โ‚น854 cr led by B2B segment. In value term, it grew by 8% YoY while in volume term, it declined by 1% YoY. The mattress business grew by 46% YoY to โ‚น34 cr.
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#EBITDA #GROWTH

In FY24, the EBITDA declined by 6% YoY to โ‚น290 cr. During the period, the decline in raw material prices was partly offset by an increase in employee benefit expense and other expenses. On the operating front, plastic segment declined by 2% YoY to โ‚น206 cr and the @home segment reported loss of โ‚น7.6 cr (v/s profit of โ‚น5.8 cr in FY23). The key raw materials used for moulded plastics are high-density polyethylene (HDPE) and polypropylene (PP). The prices of these raw materials are linked with the crude oil price. In 9M FY25, the EBITDA declined by 5.6% YoY to โ‚น197 cr due to increase in employee benefit expense and other expenses. Other expenses was higher due to increase in advertisement and sales promotion. In Q3 FY25, the advertisement and sales promotion expense stood at โ‚น30.9 cr (v/s โ‚น19.4 cr in Q3 FY24).
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#PAT #GROWTH

In FY24, the PAT declined by 10% YoY to โ‚น113 cr. During the year, other income increased to โ‚น13.3 cr (v/s โ‚น11 cr in FY23). The effective tax rate during the year was at 25.2% as compared to 25.4% in FY23. The share of profit of joint venture company, i.e., Cambro Nilkamal Private Limited increased by 20% YoY to โ‚น9.3 cr in FY24 from โ‚น7.7 cr in FY23. In 9M FY25, the PAT declined by 17% YoY to โ‚น66 cr. The share of profit of joint venture company stood at โ‚น6.5 cr (v/s โ‚น7.2 cr in 9M FY24). Nilkamal continued its focus on the three key verticals i.e., moulded furniture, ready furniture and mattress business by leveraging the strength of its distribution network and synergizing the logistics & marketing efforts.
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#EBITDA #MARGIN

In FY24, the EBITDA margin contracted by 76 bps YoY to 9.1%. During the year, the company witnessed decline in raw material prices which improved the gross margin by 243 bps YoY to 42.2%. However, this was partly offset by increase in employee benefit expense and other expenses as a percentage of sales. The companyโ€™s cost of material consumed constitutes ~45% of the total expenses followed by other expenses ~28%, purchase of stock in trade ~18%, and employee benefits expense ~9%. In 9M FY25, the EBITDA margin contracted by 69 bps YoY to 8.2%. Segment wise, the B2B business reported operating margin of 6.9% as compared to 7.3% in 9M FY24. The retail & E-commerce business continued to report operating loss.
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#PAT #MARGIN

In FY24, the PAT margin contracted by 49 bps YoY to 3.5%. The consolidated PAT margin including the share of profit of JV contracted by 45 bps YoY to 3.8%. In 9M FY25, the PAT margin contracted by 64 bps YoY to 2.7%. The consolidated PAT margin including the share of profit of JV contracted by 68 bps YoY to 3%.
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#ROCE

In FY24, the return on capital employed declined to 12.7% because of decline in PBIT. Capital employed increased to โ‚น1,768 cr on account of increase in reserve. The company has a strong market position backed by its widespread distribution network. Its ability to introduce new products under mattress and office storage products may help in increasing the PBIT and improve the ROCE going forward.
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#SECTOR #POTENTIAL

โ€ข Indiaโ€™s plastic industry will continue to provide immense growth potential in the coming years, given the low per capita consumption, shifting consumer preference towards branded plastic products and increased usage of plastics by manufacturing segments. Moulded plastic industry: โ€ข The modular plastic items industry is highly fragmented and consists of micro, small and medium units and hence, highly competitive with few entry barriers. โ€ข With improvement in the economic cycle, the plastic business is expected to grow. Changing preferences towards lifestyle and furnishing requirements of consumers pave opportunity for large players. Material handling business: โ€ข The growth of E-commerce has increased demand for larger warehouses requiring usage of material handling products, especially for pallets backed by the industryโ€™s shift to plastic pallets from conventional wooden pallets. Further, the rise in E-commerce provides better prospects for companies offering material handling solutions in warehousing.
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#COMPANY #OUTLOOK

โ€ข The construction of Hosur plant is in full swing. This plant is for manufacturing foam, mattress, ready furniture and sofa at a cost of ~โ‚น150 cr. The commercial production at Hosur plant is expected to commence in Q4 FY25. This will enable the company to strengthen its position for becoming one stop furniture destination for its B2C segment. โ€ข The rigid packaging commenced production at Puducherry during the quarter. โ€ข The company will continue its investment in branding exercise including celebrity led endorsement and deepening its market presence by on-boarding new channel partners including large furniture outlet (LFO). โ€ข The company has widened its retail presence to 1,555 LFO (Large Format outlet)/MBO (Multi-Brand Outlet)/EBO (Exclusive Brand Outlet) at the end of Q3 FY25. It includes net addition of 487 In Q3 FY25. โ€ข The trial production of state-of-the-art continuous slab stock Polyurethane Foam line shall take place in FY24-25. The foam shall be companyโ€™s backward integration into mattresses & Sofas. It shall foray into manufacture technical foam for use in automotive, acoustics, footwear, leatherette backing and filter applications. At the same site, highly automated Panel processing line with the capacity of 700K boards will be installed in current financial year. โ€ข In mattress business, the company expects high growth with wide-ranging product availability, branding and increase in channel partners along with commencement of in-house production of foam during FY25. โ€ข Further, the company shall invest ~โ‚น100 cr in its plastics and racking business. โ€ข In view of the current scenario and fast changing retail environment, the company is focusing on strengthening its E-commerce presence with better supply chain measures, warehousing and depots. โ€ข In October 2024, the company rebranded its retail vertical to "Nilkamal Homes" merging @home and Nilkamal Furniture Ideas stores into one single retail identity.
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Nilkamal 1450 -1555
Expected level 1900
Support 1379
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Adani Ports Company Details Report

Adani Ports and Special Economic Zone Limited is the largest port developer and operator in India with 7 strategically located ports and terminals on the West coast (Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra and Vizhinjam in Kerala) and 8 ports and terminals on the East coast of India (Haldia in West Bengal, Dhamra and Gopalpur in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu and Karaikal in Puducherry), representing more than 26% of the country's total port volumes. The company is also developing a transshipment port at Colombo, Sri Lanka, and owns the Haifa Port in Israel. The port facilities are equipped with the latest cargo-handling infrastructure and offer handling services for all kinds of cargos from dry cargo, liquid cargo, crude and containers. Apart from its port operations, APSEZ is the approved developer of a multi-product SEZ at Mundra, Dhamra and Kattupalli and its surrounding areas. Through its subsidiary, Adani Logistics Ltd., APSEZ operates 132 trains, 12 MMLP (Multi Modal Logistics Park), 1.2 MMT (million metric tonne) of Grain Silos, 2.4 mn sq. ft. of ware-housing, 690 kms of rail tracks and 936 trucks as on 31st December 2024. The companyโ€™s integrated services across three verticals, i.e. Ports, Logistics and SEZ, has enabled it to forge alliances with leading Indian businesses making APSEZ an undisputed leader in the Indian port sector. The company has 161 subsidiaries and 27 joint ventures as on 31st December 2024.
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#SALES #GROWTH 5 Year CAGR19.6%

In FY24, the sales grew by 28% YoY to โ‚น26,711 cr led by growth in ports (both domestic and international) and logistics businesses. The ports total cargo volume grew by 24% YoY to 419.9 MMT and revenue grew by 30% YoY to โ‚น24,124 cr led by growth in the economy. During the year, the domestic cargo volume stood at 408.4 MMT and international cargo volume at 11.5 MMT. In logistics business, the container volume grew by 18% YoY to 10.4 mn TEUs and revenue grew by 19% YoY to โ‚น2,079 cr. In 9M FY25, the sales grew by 14% YoY to โ‚น22,590 cr. The sales includes โ‚น603 cr gain on divestment of 49% equity stake of Adani ennore container terminal private limited. Excluding this, the sales grew by 11% YoY to โ‚น21,987 cr led by 12% YoY sales growth in port business, 22% YoY sales growth in logistics business. The SEZ & port development business reported sales of โ‚น798 cr (v/s โ‚น362 cr in 9M FY24). The port cargo volumes grew by 7% YoY to 332.5 MMT primarily driven by 19% YoY.
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#EBITDA #GROWTH 5 Year CAGR 19.0%

In FY24, the EBITDA grew by 44% YoY to โ‚น15,751 cr. The absolute EBITDA (excludes forex loss of โ‚น113 cr in FY24 vs. forex loss of โ‚น1,886 cr in FY23) grew by 24% YoY to โ‚น15,864 cr. Foreign exchange loss was due to mark-to-market adjustment on dollar denominated debt. Segment wise, the port business (both domestic and international) EBITDA grew by 26% YoY because of an increase in cargo volume & operational efficiencies and the logistics business EBITDA grew by 11% YoY. In 9M FY25, the EBITDA grew by 18% YoY to โ‚น13,831 cr. Excluding the gain on divestment, the EBITDA grew by 13% YoY to โ‚น13,228 cr. Segment wise, the port business (both domestic and international) EBITDA grew by 13% YoY and the logistics business EBITDA grew by 6% YoY. The SEZ & port development EBITDA increased to โ‚น731 cr (v/s โ‚น60 cr in 9M FY24).
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