Thursday, 5 April 2018

MERINO INDUSTRIES LTD – AN UNLISTED LAMINATING COMPANY OF INDIA


Merino Industries Limited  incorporated in 1965 is an unlisted public limited company engaged in manufacturing and marketing interior solutions. The company has its headquarter located at Kolkata , sales presence in 50+ countries and more than 4000 dealers supported by multi- regional warehouses markets which has helped it to sustain its market leadership position over last 5 Years.

Merino Industries Ltd has 3 business verticals i.e
  1. Laminates - Merino manufactures high and low pressure and decorative laminates through its 5 state of art manufacturing units located at Uttar Pradesh, Rohad (Haryana), Tamil Nadu and Gujarat. The Laminates are manufactured under brand name “MERINO
  2. Panel Products and Furniture- Merino is pioneered in manufacturing panel products i.e rest rooms cubicles, furniture and furniture components made suitable for home, offices, commercial and public areas. These formaldehyde and space saving furniture are manufactured under the brand name “My SPACE”. Merino Industries manufactures its panel products through its subsidiary i.e Merino Panel Products Ltd (74.5% stake) at Rohad, Haryana. Furniture and components are manufactured at Hapur, Uttar Pradesh.  
  3. Potato Flakes - Since 2005 Merino has diversified into Agro Business where it manufactures and supplies potato flakes and other ready to eat snacks under the brand name “Vegit”. The manufacturing facility at Hapur, Uttar Pradesh.


FINANCIAL HIGHLIGHTS – (Fig. in Crs)                Annual Report 2017

CONSOLIDATED RESULT
PARTICULARS
2017
2016
2015
2014
TOTAL INCOME
1088.04
971.09
928.13
809.45
EBITDA
234.73
186.87
154.55
103.11
PAT
117.06
86.35
64.64
35.73
EPS
111.80
82.47
61.74
34.13
EQUITY
10.4703
10.4703
10.4703
10.4703
FACE VALUE
10
10
10
10
BOOK VALUE
434.99
331.58
253.28
193.73

SEGMENT REPORTING

SEGMENTS
TOTAL REVENUE
2017
2016
2015
2014
LAMINATES
518.13
484.12
461.97
394.02
PANEL PRODUCTS
133.24
121.06
112.7
115.08
POTATO FLAKES
47.9
51.54
77.12
73.38

PROFIT BEFOR TAX
LAMINATES
129.36
120.37
82.52
43.65
PANEL PRODUCTS
6.76
8.64
13.85
16.28
POTATO FLAKES
-9.79
-9.25
0.0355
-2.06


PEER COMPARISON AND VALUATION:
Merino Industries Ltd falls under the category of “Laminates and Plywood”. Listed companies under this sector for peer comparison shall be Greenlam Industries, Greenply Industries, Stylam Industries, Century Plyboard, Alfa ICA (India), etc.

All these listed companies are trading at Average Industrial PE – 35 to 40 and P/BV – 5 to 7x. 


Thus based on strong growth in the real estate industry, Indian furniture market, growing middle class segment, lower interest rates and increasing number of nuclear families , increase in urbanization are driving real estate demand, strong financial positioning of the company closely held by management and based on peer valuation we strongly recommend “BUY – MERINO INDUSTIRES LTD



For buying and selling any unquoted / unlisted / delisted or suspended shares in physical or demat you can reach us at Contact No.91+ 09215709100 or Email us on mittalmanish2003@gmail.com


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