eq_rrl_CAMLIN

8/3/2019 eq_rrl_CAMLIN

1/4

ote:

YTDreturnsaresinceApril1,2010toNov30,2010.

1m,

3m

and

12

m

returns

are

up

to

Nov

30,

2010.

Industry: CommercialServices&Supplies l SubIndustry:OfficeServices&Supplies l Website:www.camlin.com

SETicker: CAMLIN

loombergTicker: CAMLN:IN

acevalue/Share:1.0

iv.Yield(%): 1.3

CMP(ason30Nov2010Rs/share): 39.9

52weekrangeupto30Nov2010(Rs)(H/L): 53.75/22.10

MarketCapason30Nov2010(Rsmn): 2,416

EnterpriseValueason30Nov2010(Rsmn): 2,820

Sharesoutstanding(mn): 60.6

FreeFloat(%): 61.0

Averagedailyvolumes(12months): 440,574

Beta(2year): 0.8

ey

Stock

Indicators

Camlin Ltd

CRISIL COMPANY REPORT | 1

KeyFinancialIndicators

n.m.:Notmeaningful

Shareholding(As

on

September

30,

2010)

Indexedpricechart

Promoter

39%

FII

3%

DII

2%

Others

56%

0

2,000

4,000

6,000

8,000

10,000

12,000

0

50

100

150

200

250

Dec09 Feb10 Apr10 Jun10 Aug10 Oct10

('000)(index)

Volumes(RHS) CamlinLtd NIFTY

CamlinLtd(Camlin)wassetupasaprivatelimitedcompanyin1946andlaterconvertedintoapublic

imited company and listed on the Bombay Stock Exchange in 1987. Camlin enjoys a leadership

positionwithitsbrandsCamel,CamlinandExaminitsrangeofstationeryproducts.

KEYHIGHLIGHTS

Astrongbrandimageandwelldiversifiedproductportfolio

Camlin is one of Indias strongest brands across various stationery and colour products. Camlin

geometryboxes,writingink,crayons,Florapencilsandsketchpensaresomeofitsmainproducts.In

he stationery segment (59% of FY10 revenues), the company offers scholastic and officeuse

materials. The colour segment (41% of FY10 revenues) includes scholastic, hobby and fine arts

materials.

Astrongdistributionnetworkandinnovativemarketingstrategies

Camlinhasawellestablisheddistributionnetworkcomprisingselfowneddepots,1,500distributors

and more than 300,000 retailers across India. Camlins innovative marketing strategies such as

directlymarketingproductstoschoolsthroughanexclusiveschoolactivationteamandorganizingAll

ndiaCamelColorcontests havekeptitaheadofotherplayersinthesamespace.

Keydriver:Increasedgovernmentandpercapitaexpenditureoneducation

Overthepastdecade,governmentexpenditureoneducationhas increasedataCAGRof19.8%and

ndiaspercapitaexpenditureoneducationhas increasedataCAGRof~8%fromRs204.7toRs437

perstudent;whichwillboostthedemandforstationeryproducts.

KEYRISKS

Thecompanys keyrawmaterials includevariouspetrochemicalproducts.Anyvolatility inraw

materialpriceswilladverselyaffectCamlinsmargins.

The company operates in the stationery (nonpaper) industry which is highly fragmented.

Unorganizedplayersaccount foraround80%of the totalmarketshare incertainproducts like

writinginstruments.Itfacesseverecompetitionfromtheseentities.

tockPerformancesvisvismarket

YTD 1m 3m 12m

Camlin Ltd 58 16 26 63

NI FTY 11 4 7 14

Returns(%)

Mar08 Mar09 Mar10

Revenue (Rs mn ) 2,148.8 2,845.0 3,319.7

EBITDA

margins

(%) 5.9 6.7 8.0PAT(Rs mn) 35.5 68.8 116.4

PATma rgi ns(%) 1.7 2.4 3.5

Gearing(x) 0.4 0.8 0.7

EPS(Rs /sha re) 5.9 1.1 1.9

PE(x) 7.4 20.6

P/BV(x) 1.0 3.9

RoCE(%) 17.4 19.7 21.8

RoE(%) 10.7 14.2 20.5

EV/EBITDA(x) 4.6 10.5


2/4

CamlinLtd

m:Notmeaningful


ACKGROUND

amlinwassetupasaprivatelimitedcompanyin1946andlaterconvertedintoapubliclimitedcompanyandlistedontheBombayStockExchangein1987.Thecompanyis

ngaged in themanufacturingand tradingofartmaterialandstationeryproducts.Thepromotershavebeen in this lineofbusinesssince1931.Camlinhas itsplantsat

asai,TarapurandTalojainMaharashtra;andJammuinJammu&Kashmir.

ptoFY06,Camlinoperatedthroughthreedivisions:consumerproducts,finechemicalsandpharmaceuticals;whichwasrestructuredintotheconsumerproductsandfine

hemicalsdivisions.Inorderto improvefocusandgrowth inboththedivisions,themanagementdecidedtohiveoffthefinechemicalsdivision intoaseparatecompany.

amlinFine

Chemicals

Ltd

(CFCL)

was

formed

in

December

2006

and

was

listed

on

the

Bombay

Stock

Exchange

in

March

2007.

OMPETITIVEPOSITION

eerComparison

INANCIALPROFILE

evenuesimprovedduetohighersales

nFY10,Camlinsrevenuesgrewby17%yoytoRs3.3bncomparedtoRs2.8bninFY09.

hecompanyEBITDAmarginsimprovedto8.0%inFY10ascomparedto6.7%inFY09on

ccountof

higher

sales

from

in

house

production

facilities.

Subsequently

PAT

margins

ooimprovedfrom2.4%inFY09to3.5%inFY10.

CamlinLtd. PidiliteIndustriesLtd.

Mar10 Mar10

evenue (Rs mn) 3,319.7 22,193.6

BITDAmargins (%) 8.0 18.9

AT(Rs mn) 116.4 2,746.4

ATMargin (%) 3.5 12.4

earing(x) 0.7 0.7

PS(Rs/share) 1.9 6.1

E(x) 20.6 24.6

/BV(x) 3.9 6.7

oCE(%) 21.8 28.8

oE (%) 20.5 40.0

V/EBITDA(x) 10.5 19.1

Units Mar08 Mar09 Mar10

Revenue Rs mi ll ion 2,148.8 2,845.0 3,319.7

EBITDAmarg ins Percent 5.9 6.7 8.0

PAT Rsmi ll ion 35.5 68.8 116.4

PATma rgi ns Pe rcent 1.7 2.4 3.5

Revenue growth Percent 13.5 32.4 16.7

EBITDA g ro wth Percent 42.7 49.6 39.9

PATgrowth Percent 90.1 93.7 69.1

Gea ring Times 0.4 0.8 0.7

RoCE Percent 17.4 19.7 21.8

RoE Percent 10.7 14.2 20.5

KeyFinancialIndicators

NDUSTRYPROFILE

ducationservices

here istremendousopportunityforanexponentialgrowthoftheeducationsectorgiventhedemographicprofileofIndiaand the latentdemandforqualityeducation.

hereisincreasedcompetitionforgettingintoqualityeducationalinstitutionsasseveraleducationalinstitutionsdonothaveadequateinfrastructure,trainedteachersand

ropercontentdeliverymechanisms.Withanincreaseinaffordability,householdsarealsowillingtopayahigherpriceforqualityeducation.Themultitudeofgovernment

egulations and regulatory bodies, especially in higher education, is a key factor influencing private participation. The `not for profit` diktat is anothermajor factor

fluencinghigher investments in theeducation sector.Despite the strict regulatoryenvironment, investors have lucrative opportunitieswith emergenceof innovative

tructures/modelsofoperation.


3/4

CamlinLtd


NNUALRESULTS

QUARTERLYRESULTS

Rsmillion) Sep10 %ofRev Sep09 %ofRev Jun10 %ofRev Sep10 %ofRev Sep09 %ofRev

oofMonths 3 3 3 6 6

evenue 787.9

100.0

708.3

100.0

1,208.6

100.0

1,996.5

100.0

1,768.0

100.0

BITDA 46.5 5.9 43.0 6.1 157.2 13.0 203.7 10.2 182.1 10.3

nte res t 15.4 1.9 12.7 1.8 15.3 1.3 30.6 1.5 26.9 1.5

e preci ati on 16.4 2.1 13.0 1.8 14.7 1.2 31.1 1.6 25.9 1.5

BT 14.7 1.9 13.0 1.8 127.3 10.5 142.0 7.1 121.0 6.8

AT 8.9 1.1 10.2 1.4 95.3 7.9 104.2 5.2 90.4 5.1

tandaloneProfitandlossaccount

comeStatement Balancesheet

Rsmillion) Mar08 Mar09 Mar10 (Rsmillion) Mar08 Mar09 Mar10

etSales 2,145.2 2,832.1 3,313.6 Equitysharecapi tal 60.0 60.0 60.3

peratingIncome 2,148.8 2,845.0 3,319.7 Reservesand surplus 393.3 457.9 557.2

Tangiblenetworth 453.3 517.9 617.4

BITDA 127.4 190.5 266.5 Deferredtaxli abli ty:|asset| 3.4 12.0 14.4

BITDAMargin 5.9 6.7 8.0 Longtermdebt 53.5 87.1 58.0

Shortterm

debt 149.6 305.2 367.0

epreciation 37.7 43.5 52.4 Totaldebt 203.2 392.4 425.0

terest 26.1 52.9 58.3 Currentlia bili ties 344.7 455.3 688.6

therIncome 1.4 1.4 0.3 Total provisions 36.2 38.7 54.3

Totalliabilities 1,040.8 1,416.3 1,799.7

BT 63.2 102.7 157.8 Gross block 487.5 769.4 9 04.7

AT 35.5 68.8 116.4 Netfixedassets 262.5 482.4 581.7

Investments 9.9 7.7 5.1

ATMargin 1.7 2.4 3.5 Currentassets 768.5 926.2 1,212.8

Receivables 264.2 347.5 483.0

o.ofshares(MnNo.) 6.0 60.0 60.3 Inventories 392.9 439.4 586.1

Cash 36.0 23.6 21.1

arnings pershare(EPS) 5.9 1.1 1.9 Totalassets 1,040.8 1,416.3 1,799.7

ashflow Ratio

Rsmillion) Mar08 Mar09 Mar10 Mar08 Mar09 Mar10

retaxprofit 65.0 95.5 155.5 Revenuegrowth(%) 13.5 32.4 16.7

otal taxpaid 28.0 25.3 3 9.0 EB ITDAgrowth(%) 42.7 49.6 39.9

epreciation 37.7 43.5 52.4 PATgrowth(%) 90.1 93.7 69.1

hangein workingcapital 215.5 57.0 40.3

EBITDAmargi ns(%) 5.9 6.7 8.0

ashflowfromoperatingactivities 140.8 56.7 128.6 Taxrate(%) 44.3 24.6 24.7

apitalExpenditure 104.9 263.4 15 1.8 PATmargins(%) 1.7 2.4 3.5

vestmentsand others 0.0 2.2 2.7

Dividendpayout(%) 42.2 26.1 25.9

ashflowfrominvestingactivities 104.9 261.2 149.1 ReturnonEquity(%) 10.7 14.2 20.5

quityraised/(repaid) 210.0 0.0 4.1 Returnoncapital employed(%) 17.4 19.7 21.8

ebtrai sed/(repaid) 50.5 189.2 32.6

ividend(incl.

tax)

17.5

21.1

3 5.2 Gea ri ng

(x) 0.4 0.8 0.7

thers(incl extraordi naries) 15.0 23.9 16.6 Interestcoverage(x) 4.9 3.6 4.6

Debt/EBITDA(x) 1.6 2.1 1.6

ashflowfromfinancingactivities 258.0 192.0 18.1

hangein cashposition 12.3 12.5 2.4 As setturnover(x) 4.7 4.5 4.0

peningcash 23.7 36.0 23.6 Currentratio(x) 1.4 1.2 1.1

osingcash 36.0 23.6 21.1 Gross currentassets(da ys) 130 117 133

m:Notmeaningful;


4/4

CamlinLtd


FOCUSCHARTS &TABLES

Dec2009 Mar2010 Jun2010 Sep2010

Promote r 38.7 38.7 38.7 38.4

FI I 14.5 4.5 2.2 3.1

DI I 0.0 0.0 0.3 2.4

Othe rs 46.8 56.8 58.9 56.1

ShareholdingPattern(Percent)

0

5

10

15

2025

30

35

40

0

200

400

600

800

1,000

1,200

1,400

Dec

07

Mar08

Jun

08

Sep

08

Dec

08

Mar09

Jun

09

Sep

09

Dec

09

Mar10

Jun

10

Sep

10

Per centRsmn Quarterlysales&yoygrowth

Sales Salesgrowthyoy(RHS)

1,000

500

0

500

1,000

1,500

2,000

2,500

3,000

20

0

20

40

60

80

100

120

Dec

07

Mar08

Jun

08

Sep

08

Dec

08

Mar09

Jun

09

Sep

09

Dec

09

Mar10

Jun

10

Sep

10

Per centRsmn QuarterlyPATandYoYgrowth

NetProfit Netprofitgrowthyoy(RHS)

0.4

0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Dec

07

Mar08

Jun

08

Sep

08

Dec

08

Mar09

Jun

09

Sep

09

Dec

09

Mar10

Jun

10

Sep

10

Rs/share EPS

4

2

0

2

4

6

8

10

12

14

Dec

07

Mar08

Jun

08

Sep

08

Dec

08

Mar09

Jun

09

Sep

09

Dec

09

Mar10

Jun

10

Sep

10

Pe rcent Movementinoperatingandnet margins

OPM NPM

DirectorName Designation

D il ipDigambarDandekar(Mr.) ExecutiveChairman&Managing

RajivMadhavDandekar(Mr.) Jt.Ma na gi ngDirector,Wholetime

Director

AshishSubhashDandekar( Mr.) No nExecutiveDirector

DeepakMadhavDandekar(Mr.) ExecutiveDirector

ShriramSharadDandekar(Mr.) Wh ol e ti m eDirector

ShishirBabubhai D esai (Mr.) NonExecutiveDirector

DeepakKeshavG haisas(Mr.) NonExecutiveDirector

DhananjayNarendra Mungale

(Mr.)

Non ExecutiveDirector

VijayNarayanParanjpe(Mr.) NonExecutiveDirector

SriramRamanathan (Mr.) NonExecutiveDirector

ShishirSureshShirgaokar(Mr.) NonExecutiveDirector

Anil Singhvi(Mr.) NonExecutiveDirector

BoardofDirectors

AdditionalDisclosure

ThisreporthasbeensponsoredbyNSE InvestorProtectionFundTrust(NSEIPFT).

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Documents

eq_rrl_CAMLIN