Collateral Research Report – Shalimar Paints

 Essay about Equity Analysis Report  Shalimar Paints

Security Analysis and Portfolio Administration

Collateral Research Record – Shalimar Paints

Market Overview:

American indian Paint Industry is today worth INR 275 bn. with ~69 % received from organized section and snooze coming from unorganized segment. India has one of many lowest per-capita consumption of paints at only 1 . five kg. (World Average sama dengan 8 kilogram. ) because of which Indian Paint Market is forecasted to preserve its growth momentum to succeed in ~460 bn. by 2016. Organized segment is a very concentrated one with top 5 firms cornering ~90 % marketshare.

Company Review:

Shalimar Paints is the India's oldest paint company situated in Mumbai. The organization is involved in manufacturing and marketing of paints, professional coatings, aviators coatings, underwater paints and coatings pertaining to metal adornment, and foodstuff can lacquers. It is the fifth major Paint business of India.

It was founded in 1902 by two British business owners AN Turner and AIR CONDITIONING UNIT Wright since Shalimar Chemicals Colour & Varnish Limited. In 1928, Pinchin Manley & Acquaintances of UK bought control from the English entrepreneurs A GREAT Turner and AC Wright. In 1963, Company name have been changed to Shalimar Paints Ltd after Turner Morisson & Co moved in since new supervision. In 1972 Shalimar went to the population.

Indian Color Industry can be further subdivided into two segments:

1 ) Decorative (Architectural) Segment:

It is 70% by worth and 77% volumes. In this segment, the organization has usana products across every categories and price-points viz., Economy, Mid-Range and Superior (with greater contribution coming from Economy & Mid-Range price-points). The division in different types is as uses:

2 . Professional Segment:

It can be 30% simply by value and 23% volumes of prints. In this section, the company provides major presence in non-automotive category with it staying the 3rd greatest player in High Performance Films enjoying an overall 9 % market share of India's Defensive Coatings industry ( just behind Berger & Hard anodized cookware Paints ).

The division in different types is as employs:

Shalimar's offerings and placement in the industry:

1 . Decorative segment: Shalimar Paints is present in every categories. 2 . Industrial part:

a. Auto ORIGINAL EQUIPMENT MANUFACTURING: Shalimar Chemicals is present.

b. Auto re-finish: Shalimar Paints is present.

c. High performance/General industrial: Shalimar Paints exists. d. Powder coatings: Shalimar Paints exists to a limited extent. electronic. Coil coatings: Shalimar Paints will enter in FY14.

farreneheit. Others: Shalimar Paints is present to a limited extent.

Shalimar's Financial Efficiency:

Now, after having an overview of business business, let's have a look at provider's financial functionality over previous decade as also its segment smart breakup. Depicted below is definitely past 10 Years' Product sales, EBITDA & PAT efficiency of Shalimar Paints Limited.:

(fig in Rs CR)

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

Net Sales

530. 18

486. 44

407. sixteen

365. 56

330. 88

300. 13

256. 49

217. up to 29

189. 91

115. 68

EBITDA

37. 05

37

29. seventy seven

28. 13

19. 87

23. 83

16. 11

10. almost 8

7. 91

5. 33

PAT

10. 02

14. 46

10. 66

12

3. 56

9. 58

4. seventy four

3. forty one

1 . 98

1 . forty-nine

Mentioned listed below is the break-up of earnings between Attractive & Industrial Segments of Shalimar Chemicals Ltd. intended for last eight years starting from FY06 till FY12. FY13 breakup data is still anticipated:

(fig in Rs CR)

FY12

FY11

FY10

FY09

FY08

FY07

FY06

Decorative Paints

319

271

236

221

206

170

152

Industrial Paints

162

131

124

108

92

79

54

Tips to be monitored:

1 . Operationalisation of To the south India Grow:

Company has to commission its Greenfield manufacturing facility in South India before the start of 2HFY14. Capacity Utilization with the plant to get FY14 and also capitalization of initial expenses related to it will be key monitorable factors.

2 ....


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