Camlin Limited— BUY—28.80—INR
Sector — Diversified
Regd.Off.— Camlin House, JB Nagar, Andheri (E), Mumbai, M.H.-400059
Listed —BSE (Code—523207).
Company overview—
Company was incorporated on 24th December 1946, as a private limited company with the main object of taking over the running business of M/s. Dandekar & Co., which was founded by late G.P. Dandekar and D.P. Dandekar in 1931 at Girgaum, Mumbai. The Company manufactures stationary products, art materials. The Company was converted into a public limited company on 24th March 1988 and the name was changed to Camlin Ltd. The initial product range of M/s. Dandekar & Co., comprised of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc. which took part in business activities in 1939 and was shifted to Mahim, Mumbai. In 1984 Company diversified its manufacturing and marketing activity into the field of pharmaceuticals, i.e., bulk drugs and formulations at Tarapur. Company acquired a licence to manufacture 42.100 tonnes per annum of bulk drugs such as Diloxanide Fuorate, Mebendzole, Diazepam and Ibuprofen. A plant at Tarapur was set up with an installed capacity of 15,400 tonnes per annum. Company also set up a plant at Tarapur for the manufacture of Hi-Polymer Lead. A technical agreement signed with Pilot Pen Co. Ltd., of Japan. Company delisted its shares from The Delhi Stock Exchange Association Ltd (DSE) with effect from December 11, 2004. Company removed its loss making pharmaceutical operations last year.
Products & Services—
Company started its operations with the product range of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc, Company now manufactures wide range of stationary products, art materials, Crafting, Gifting, Office products and others. Company's products are marketed under the brand names of "Camel" and "Camlin". Its Analytical Laboratory at Andheri is recognised as a public testing house by State Food & Drug Administration of Maharashtra and the R & D laboratory is approved by the Department of Scientific and Industrial Research, Government of India. Company is engaged in the manufacturing of miscellaneous products. The plants are located in J.B. Nagar, Andheri, Mumbai; MIDC, Boisar, Tarapur, Dist Thane & MIDC, Taloje, Navi Mumbai.
Company has the complete range of artist colours and materials such as water colours, poster colours, oil colours, fabric colours, geometry boxes, drawing inks, painting brushes and canvases. Company produces wood cased pencils in the fully integrated plant in the industrially backward area of Tarapur, Maharashtra. Company has a marketing alliance with Colart Fine Art & Graphics Ltd. U.K. Company also has a facility for manufacture of industrial grade synthetic adhesives at Taloja near Mumbai. Company’s manufactures products for the Creating, Crafting, Painting, Learning, Working, Writing and Gifting categories. Company has a unique brand identity into its area of operations.
Valuation—
Camlin has decided to incorporate a 100% subsidiary company for carrying out the new activity of setting up of pre-schools. For the aforesaid purpose, the company will be investing an amount of Rs 10 million in the proposed subsidiary company by way of subscription towards equity capital as also loan. Company is eyeing at Rs 5 billion turnover by FY12 following the completion of its expansion program. The company’s Jammu unit has also commenced operations and started contributing to its profitability. The firm is now all set to achieve its ambitious growth plan. The company sees a big opportunity as India’s writing instruments market is estimated at Rs 20 billion.
At current market price, Stock is trading at only 8.52 P/E multiple of its FY2010 Estimated Earnings. We recommend investors “STRONG BUY” on “Camlin Limited” for medium to long-term investment prospective.
Sector — Diversified
Regd.Off.— Camlin House, JB Nagar, Andheri (E), Mumbai, M.H.-400059
Listed —BSE (Code—523207).
Company overview—
Company was incorporated on 24th December 1946, as a private limited company with the main object of taking over the running business of M/s. Dandekar & Co., which was founded by late G.P. Dandekar and D.P. Dandekar in 1931 at Girgaum, Mumbai. The Company manufactures stationary products, art materials. The Company was converted into a public limited company on 24th March 1988 and the name was changed to Camlin Ltd. The initial product range of M/s. Dandekar & Co., comprised of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc. which took part in business activities in 1939 and was shifted to Mahim, Mumbai. In 1984 Company diversified its manufacturing and marketing activity into the field of pharmaceuticals, i.e., bulk drugs and formulations at Tarapur. Company acquired a licence to manufacture 42.100 tonnes per annum of bulk drugs such as Diloxanide Fuorate, Mebendzole, Diazepam and Ibuprofen. A plant at Tarapur was set up with an installed capacity of 15,400 tonnes per annum. Company also set up a plant at Tarapur for the manufacture of Hi-Polymer Lead. A technical agreement signed with Pilot Pen Co. Ltd., of Japan. Company delisted its shares from The Delhi Stock Exchange Association Ltd (DSE) with effect from December 11, 2004. Company removed its loss making pharmaceutical operations last year.
Products & Services—
Company started its operations with the product range of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc, Company now manufactures wide range of stationary products, art materials, Crafting, Gifting, Office products and others. Company's products are marketed under the brand names of "Camel" and "Camlin". Its Analytical Laboratory at Andheri is recognised as a public testing house by State Food & Drug Administration of Maharashtra and the R & D laboratory is approved by the Department of Scientific and Industrial Research, Government of India. Company is engaged in the manufacturing of miscellaneous products. The plants are located in J.B. Nagar, Andheri, Mumbai; MIDC, Boisar, Tarapur, Dist Thane & MIDC, Taloje, Navi Mumbai.
Company has the complete range of artist colours and materials such as water colours, poster colours, oil colours, fabric colours, geometry boxes, drawing inks, painting brushes and canvases. Company produces wood cased pencils in the fully integrated plant in the industrially backward area of Tarapur, Maharashtra. Company has a marketing alliance with Colart Fine Art & Graphics Ltd. U.K. Company also has a facility for manufacture of industrial grade synthetic adhesives at Taloja near Mumbai. Company’s manufactures products for the Creating, Crafting, Painting, Learning, Working, Writing and Gifting categories. Company has a unique brand identity into its area of operations.
Valuation—
Camlin has decided to incorporate a 100% subsidiary company for carrying out the new activity of setting up of pre-schools. For the aforesaid purpose, the company will be investing an amount of Rs 10 million in the proposed subsidiary company by way of subscription towards equity capital as also loan. Company is eyeing at Rs 5 billion turnover by FY12 following the completion of its expansion program. The company’s Jammu unit has also commenced operations and started contributing to its profitability. The firm is now all set to achieve its ambitious growth plan. The company sees a big opportunity as India’s writing instruments market is estimated at Rs 20 billion.
At current market price, Stock is trading at only 8.52 P/E multiple of its FY2010 Estimated Earnings. We recommend investors “STRONG BUY” on “Camlin Limited” for medium to long-term investment prospective.
source: Internet (Valuenotes by Abhishek Jain)
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