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Message Icon Topic: Nilkamal Plastics – More then just Plastics Post Reply Post New Topic
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prosperity
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Quote prosperity Replybullet Posted: 20/Sep/2006 at 3:01pm
What is a good entry level ?
Should we wait for it to fall before entering ?
 
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Quote Ajith Replybullet Posted: 20/Sep/2006 at 3:56pm
Market cap looks small given potential size of Nilkamal's business.
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Quote prosperity Replybullet Posted: 22/Sep/2006 at 5:09pm
Basantji,
 
Just saw that in your initial report of this company, the EPS estimates for FY08 are almost double than of FY07 !!
 
Do you really believe SSKI EPS estimates for FY08 - where would the increase in EPS come from ? @home ?
 
The the PE should get halved !
And then it looks to me a screaming buy ..
 
Kindly comment !
 
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Quote basant Replybullet Posted: 22/Sep/2006 at 5:23pm

It did seem surprising to me when I first had a look but I would go by SSKI estimates because I do not have such indepth knowledge on this stock. Even if we have a PE of 13- 15 times the stock should give a 50% return in one year.That looks very quite probable . However the stock does exhibit value and more importantly the downside is limited with a book value of Rs 143.00.But I have not taken a position because Nilkamal is not a leader in the home furnishing  space if Nilkamal can get its furnishing business correct then the other retailers could also get it on track since they enjoy a first mover advantage is the premise I worked on.

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Quote prosperity Replybullet Posted: 22/Sep/2006 at 5:36pm
which is the listed leader of this sector, if its not neelkamal ?
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Quote basant Replybullet Posted: 22/Sep/2006 at 5:47pm
The one you FEAR the most  Pantaloon Retail. Broadly the sector is yet to evolve but over the next 2 years Pantaloon should do about Rs 2000 crores sales from its Home Town business.
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Quote Ajith Replybullet Posted: 22/Sep/2006 at 11:15pm

SSKI report I have only heard of and read about but not seen-they believe there will be some consolidation in the' boring' moulded plastic chairs business.

Regarding competition from Pantaloon,Nilkamal may yet give them a run for their  money if the talks with hypermarket chains for a tie-up ends in
an agreement.But really the market is simply so large ...
I remember reading a report  on moneycontrol a few months back
about an interview of an SSKI analyst who believed that 2 players who are business-minded enough to make a success of their retail foray are  Provogue and Nilkamal.
According to the India Today report I referred to initially even the competition acknowedges the success of the pricing of at home.Any one can confirm that with a showroom visit?I got a 15% discount coupon.Pretty cool for  say a Rs30000 sofa set.By the way the latest at home showroom opened (this month)opposite one of the most happening malls in Bangalore FORUM-33000sq.feet,4 levels.
Breakeven of  at home expected next year.
This,I believe is a slightly risky(would get a bit over-leveraged)possibly very highly rewarding investment.
Kotak and Sundaram mutual funds have entered this stock.


Edited by Ajith - 22/Sep/2006 at 11:29pm
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Quote prosperity Replybullet Posted: 23/Sep/2006 at 3:06pm
I was passing by the same bangalore store of @Home - its not only opposite Forum its also diagonally opposite to Big Bazaar ....
 
It looked very spacious from outside, covering 3-4 floors..
I wanted to go in but had no time..
 
Would visit it sometime and update you all about my experiences with @Home...
 
And Ajith, where did u get the 15% discount coupon from - i need to purchase some furnitures - would be great if i can also get the discount coupons. Kindly LMK !
 
Now, @Home as i understand is into finished furnitures, when did Pantaloons entered into it - where are they Biyani's showrooms for furnitures ?
 
 
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