CAMLIN - Q1 FY11 = GOOD IMPROVEMENT = FY11 HIGHLY PROMISING

CAMLIN

Q1 FY11

RESULTS COMPARISON

INTRODUCTION

Camlin (CAMLIN) is a part of the Camlin group, which also consists of the demerged listed company Camlin Fine Chemicals, Camlin Pharma and several associate companies.

The company produces a wide range of products such as artist materials, hobby colors, scholastic colors, scholastic stationery products, office products and writing instruments under the Camel and Camlin brands - and the Krafty range of glues, adhesives and scissors. Its specialty ink division offers dye-based and pigment-based inks, ball pens, gel ink pens, deskjet ink, metamarks, rubber stamp ink, fountain pen ink, Bomark and Durmark inks. It is a market leader in art materials and stationery segment and Corporate gifts.

Its manufacturing plants are located at Tarapur and Vasai in the Thane district, Taloja in Navi Mumbai and Jammu. It has wide distribution network. Major countries of export are USA, Thailand, Bahrain, Turkey, Algeria, UAE, Bangladesh, Nepal, Sri Lanka, and CIS countries.

The company plans to strengthen its chemical and stationery businesses and wants to expand its reach in the US and UK markets. Camlin also intends to increase its capacities at its units in Tarapur and Taloja.

QI FY II Results

CAMLIN has declared its result for the Q1 FY11. It has performed excellently in the current quarter. The results are compared with the preceding quarters as below :

Net Sales has increased by 31.4% to Rs.121 Cr in Q1 FY11 compared to Rs.92 Cr in Q4 FY10 – and Rs.106 Cr in Q1 FY10 (an increase of     13.8%).

Total Expenditure has increased by 27.1% in Q1 FY11 to Rs.107Cr compared to Rs.      84 Cr in Q4 FY10 – and by 14.2% compared to Rs.93 Cr in Q1 FY10.

Net Profit   has increased by a huge 116.6% in Q1 FY11 to Rs.9.53 Cr – compared to Rs.4.40 crores in Q4 FY10 – and by 18.9% compared to Rs.8.02 Cr in Q1 FY10.

Basic EPS has gone up to Rs.1.58 in Q1 FY11 from Rs.0.73       in Q4 FY10 and compared to Rs.1.34 in Q1 FY10. Multiplying Q1 EPS by 4 and annualizing it – we find, CAMLIN is likely to clock an annual EPS of around 5 to 6  on the face value of Rs.1- against the last year EPS of just Rs.2.

At current Market Price of Rs.35,    and the likely FY11 EPS of Rs.5, the PE Ratio comes to 7. Thus, CAMLIN  is a good BUY at current prices.

RESULTS - FIGURES

CAMLIN	Jun-10	Mar-10	Dif%1	Dec-09	Sep-09	Jun-09	Dif%2
Net Sales	12053.4	9171.8	31.4	6202.6	7071.4	10588	13.8
Other OptgIncome	32.63	21.32	53	5.73	10.52	8.59	279.9
SIT&WIP	770.19	-563	-237	63.22	-458.02	-19.01	-4151.5
Raw Materials	3493.47	3420.3	2.1	2241.2	2427.6	2992.98	16.7
Traded Goods	3755.09	2906.7	29.2	1709.2	2369.4	3854.45	-2.6
Employees Cost	771.36	778.2	-0.9	632.9	667.42	837.02	-7.8
Depreciation	146.65	126.88	15.6	130.87	130.29	128.76	13.9
Other Expdr	1723.79	1720.8	0.2	1394.9	1647.3	1539.42	12
Total Expenditure	10660.6	8389.8	27.1	6172.3	6784	9333.62	14.2
Profit-Operations	1425.45	803.3	77.4	35.98	297.87	1263	12.9
Interest	152.66	165.61	-7.8	148.75	127.17	141.41	8
Excepti.Items	-	41.76		41.77	41.78	41.77
Profit before tax	1272.84	595.93	113.6	-148.53	130.37	1079.82	17.9
Tax expense	319.63	155.91	105	-9.31	28.29	278.26	14.9
Profit after tax	953.21	440.02	116.6	-139.22	102.08	801.56	18.9
Net Profit	953.21	440.02	116.6	-139.22	102.08	801.56	18.9
Dividend (%)	-	50		-	-	-
Face Value.Rs	1	1	0	1	1	1	0
Paid Up Equity	602.96	602.15	0.1	602.15	600	600	0.5
Basic EPS	1.58	0.73	116.4	-0.23	0.17	1.34	17.9
Public holding.%	61.35	61.32	0	61.3	61.15	61.15	0.3

·         *  *  *   E N D  *  *  *