Merino industries Ltd - Unlisted Shares
Fundamentals
- Current Price
- ₹3,399
- Market Cap
- ₹3,796.28 Cr
- ISIN
- INE662B01017
- Face Value
- ₹10
- P/E Ratio
- 31.24
- EPS
- ₹108.72
- P/B Ratio
- 0
- Book Value
- ₹1,216.89
- Debt / Equity Ratio
- 0.531
Key Financials
Profit & Loss
| Metric | FY2024 | FY2023 | FY2021 | FY2020 | FY202 |
|---|---|---|---|---|---|
| Revenue from Operations | 2,251.83 | 2,175.50 | 1,296.88 | 1,473.722 | 1,743.59 |
| Growth % | 0.04 | 0.25 | -0.12 | - | 0.34 |
| Operating Expenses | 2,045.39 | 1,935.79 | 1,087.08 | 1,253.27 | 1,540.96 |
| Growth % | 0.06 | 0.26 | -0.13 | - | 0.42 |
| Operating Profit | 206.43 | 239.71 | 209.80 | 220.45 | 202.63 |
| Op. Profit Margin % | 0.09 | 0.11 | 0.16 | 0.15 | 0.12 |
| Other Income | 57.29 | 29.91 | 41.98 | 18.50 | 48.54 |
| Finance Costs | 26.38 | 28.54 | 18.17 | 21.00 | 13.20 |
| Depreciation | 73.87 | 66.98 | 56.69 | 58.78 | 63.58 |
| Profit Before Tax | 163.48 | 174.10 | 176.92 | 159.16 | 174.40 |
| Tax | 41.94 | 56.46 | 45.06 | 29.73 | 43.03 |
| Tax % | 0.02 | 0.03 | 0.03 | 0.02 | 0.02 |
| Profit After Tax | 121.54 | 117.65 | 131.86 | 129.43 | 131.37 |
| Growth % | 0.03 | -0.10 | 0.02 | - | 0.00 |
| PAT % | 0.05 | 0.05 | 0.10 | 0.09 | 0.08 |
| Diluted EPS | 108.72 | 105.24 | 117.95 | 115.78 | 117.52 |
Company Financials
| Metric | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|
| Equity Capital | 11.28 | 11.28 | 11.28 | 11.28 | 7.08 |
| Reserves | 1,349.05 | 1,237.13 | 1,133.81 | 1,024.85 | 895.37 |
| Total Equity | 1,360.32 | 1,248.41 | 1,145.09 | 1,036.13 | 902.46 |
| Borrowings | 213.94 | 283.90 | 65.76 | 38.71 | 66.01 |
| Provision | 5.63 | 0.38 | 0.00 | 0.00 | 0.00 |
| Other Non-Current Liabilities | 46.57 | 32.95 | 39.95 | 34.80 | 34.60 |
| Total Non current Liabilities | 266.14 | 317.23 | 105.71 | 73.51 | 100.61 |
| Borrowings | 508.35 | 310.72 | 229.34 | 98.46 | 148.33 |
| Other Current Liabilities | 464.08 | 433.67 | 365.01 | 303.24 | 317.54 |
| Total current Liabilities | 972.43 | 744.39 | 594.35 | 401.70 | 465.88 |
| Equity + Liabilities | 2,598.89 | 2,310.04 | 1,845.16 | 1,511.34 | 1,468.94 |
| Fixed Assets (incl. WIP) | 1,169.17 | 1,134.04 | 224.93 | 431.11 | 433.59 |
| Other Non Current Assets | 331.11 | 148.03 | 718.47 | 433.18 | 239.66 |
| Total Non current Assets | 1,500.29 | 1,282.07 | 943.41 | 864.29 | 673.25 |
| Trade Receivables | 214.70 | 175.20 | 165.28 | 151.61 | 177.46 |
| Cash & Cash Equivalents | 7.63 | 3.53 | 90.26 | 23.10 | 10.36 |
| Other Current Assets | 876.27 | 849.23 | 646.20 | 472.33 | 607.88 |
| Total current Assets | 1,098.61 | 1,027.96 | 901.75 | 647.05 | 795.69 |
| Total Assets | 2,598.89 | 2,310.04 | 1,845.16 | 1,511.34 | 1,468.94 |
Shareholding Pattern
- MERINO EXPORTS PRIVATE LIMITED
- 29.58%
- Champalal Lohiia
- 11.42%
- Prakash Lohia
- 10.63%
- Madhusudan Lohia
- 8.90%
- Rup Chand Lohia
- 7.92%
- Ruchira Lohia
- 6.55%
- Other
- 25.00%
Strengths & Weaknesses
Strengths
- Strong market position in the domestic laminates industry: MIL is a leading player in the domestic laminates industry, holding a strong market share of around 20% and a well-established distribution network of 3,000 dealers. Its diverse product portfolio includes renowned brands like 'Merino' (decorative laminates), 'My Space' (furniture), and 'Vegit' (potato flakes). Revenue is projected to grow to ₹2,300 crore in FY24, with 75% driven by laminates. The upcoming particle board unit, expected by Q3 FY25, is a key growth driver.
- Healthy financial risk profile: MIL's net worth stood strong at ₹1,413 crore as of March 31, 2024, supported by steady reserves. Gearing and TOL/TNW ratios were healthy at 0.51x and 0.82x, respectively. Between FY22 and FY24, MIL invested ₹850 crore in expanding particle board capacity, funded partly by ₹325 crore in external debt. Despite additional ₹100 crore term debt in FY25 for capex, the capital structure is expected to remain solid. Debt protection metrics were robust in FY24, with interest coverage at 12x and net cash accrual to debt at 0.31x
Weaknesses
- Exposure to intense competition and changes in demand in the real estate sector: The decorative laminates and panel boards industry faces competition from both unorganised players and established brands like Greenlam Industries and Century Plyboards, alongside growing foreign entrants. Domestic organised players are expanding capacity to meet rising demand. While replacement demand offers stability during lean periods, growth is primarily driven by new users and the construction sector.
- Susceptibility of profitability to volatility in raw material prices: Raw materials, including kraft paper, design paper, and chemicals like phenol and melamine, account for 55-60% of MIL's cost of sales. Around 60-70% of these are imported from regions like the USA, Europe, and China. Price volatility and freight costs have impacted profitability, with an operating margin of 12% in FY24. Price revisions and efficient cost pass-through, coupled with capex stabilisation, are crucial for margin improvement.
- Large working capital requirement: Intense competition necessitates offering of substantial credit to distributors. The company also needs to hold large inventory, because of a variety of designs and need to minimise delays in delivery to customers. Gross current assets ranged from 150 to 164 days over the three fiscals ended March 31, 2024. Efficient working capital management amid increasing scale will remain a key monitorable over the medium term.
About Merino industries Ltd
Merino Industries Limited (MIL) is primarily engaged in manufacturing and supplying decorative laminates in India and abroad. The company has its manufacturing facilities located in Hapur (Uttar Pradesh) and Hosur (Tamil Nadu) and it is also engaged in manufacturing potato flakes, pre-laminated boards, and furniture units along with providing allied interior solutions and trading of laminates, chemicals, other panel products, and potatoes
Board of Directors
- Rup Chand lohia - Executive Chairman
- Prakash Lohia - MD
- Ruchira Lohia - Wholetime Director
- Prasan Lohia - Wholetime Director
- Bikas Lohia - Wholetime Director
- Madhusudan Lohia - Wholetime Director
- Nripen Kumar Dugar - Wholetime Director
- Gautam Bhattacharjee - Independant Director
- Sisir Kumar Chakrabarti - Independant Director
- Bama Prasad Mukhopadhyay - Independant Director
