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Robust growth in the June quarter, witnessed by Kokuyo Camlin :

Robust growth in the June quarter, witnessed by Kokuyo Camlin :

Robust growth in the June quarter, witnessed by Kokuyo Camlin :

Kokuyo Camlin reported a net profit of Rs.8.35 Cr. compared to Rs.2.94 Cr. in March 2022. The firm clocked in Rs. 196.15 Cr., up by 20.24 % from Rs. 163.95 Cr. in the previous quarter. The EBITDA margin stood at Rs. 13.54 Cr. in the June 2022 quarter compared to Rs. 7.69 Cr. in March 2022.

The demand for paper is strong in all the regions after the COVID-19 pandemic. India’s stationery market is estimated to be around USD 2.5 billion. The latter are dominating the market as this industry has a mix of both organised and unorganised players. With a literacy rate of 74% accompanied by a high population. There are numerous government programs inclined towards pushing higher studies that have resulted in new opportunities for the company. resulting in higher demand and enhanced stationery industry growth.

Camlin’s non-school product portfolio accounts for almost 50% of the total revenues and is improving in the Fine Art and Hobby domain. The company has contacted nearly 2500 hobby tutors across the country and is working with them to improve the quality of their product. The main risks for the firm are the cyclic nature of the stationary industry, economic risk, supply chain disruptions and shortage of raw materials due to the Russia-Ukraine war, etc. The company is taking steps to reduce risk while also creating value for its customers and shareholders.

We believe the share price of Kokuyo Camlin is around the same range as well. due to ongoing geopolitical issues, a slowdown in the economy and currency deprecation. Despite the fact that synergies across various distribution hubs will benefit in terms of low cost, expansion to new locations, quick roll outs, and R&D. The firm targets around 30% or more of its revenue from overseas in a ten-year time period. With the devaluation of the domestic currency, the company has opportunities to capture new markets since it has a competitive price.

The script was trading at Rs. 67.80 on Friday and was up by 0.59%, or 0.40 points. The stock touched an intraday high of Rs.69.25 and an intraday low of Rs.67.10. The 52-week high for the stock was at Rs. 79.6 and the 52-week low was at Rs. 50.5. The market cap for Kokuyo Camlin is Rs. 681Cr.

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