Merino Industries Unlisted Shares
About Merino Industries Unlisted Shares
Merino Industries Limited, a part of the Merino Group, has been a prominent name in India’s manufacturing sector since its inception in 1965 by the late Man Kumar Lohia and his brothers. With a legacy of over five decades, the company has grown to become the largest manufacturer and exporter of laminates in India. Headquartered in Kolkata, Merino Industries operates state-of-the-art manufacturing units in Hapur (Uttar Pradesh), Rohad (Haryana), Hosur (Tamil Nadu), and Dahej (Gujarat). The company’s strong leadership and expertise in the laminates industry have positioned it as a market leader, with products marketed in more than 60 countries globally.
Merino Industries’ robust network of over 4,000 dealers, which has doubled in the last five years, ensures its presence across more than 2,000 outlets nationwide. The company’s diverse product offerings and strategic distribution channels make it a key player in the Indian and international markets.
Business Divisions
Merino Industries operates in various business segments, each contributing to its diversified portfolio:
- Interior Solutions (Laminates & Plywood): Merino is renowned for its range of interior solutions, particularly its laminates, which are used in residential, commercial, and public spaces. Plywood was the company’s first product in 1974, marking the beginning of its journey into the interior solutions market. Over time, Merino has expanded its offerings to include a wide variety of laminates, decorative surfaces, and other interior solutions for homes and offices.
- Agro Business: The company initially ventured into the cold storage business and has since expanded into farming, biotechnology, and food processing. Its foray into the FMCG sector is marked by the launch of the popular ‘Vegit’ brand, which offers potato flakes and ready-to-eat snack mixes.
- Information Technology Services: Through Merino Services Limited, the company provides business consulting and IT services. This division specializes in designing and implementing business solutions, adding a technology-driven aspect to its diverse portfolio.
Merino’s primary revenue stream still comes from the laminate segment, contributing around 90% of the total business.
Financial Highlights
Merino Industries’ financial performance reflects a healthy growth trajectory despite the challenges faced in some business segments. Below are the key financial highlights:
- Revenue Growth: Merino Industries reported a revenue of ₹2,252 million in the latest fiscal year, showing a steady increase from ₹2,175 million the previous year. The company has maintained consistent revenue growth, driven primarily by its core laminate business.
- Gross Margin Performance: The company’s gross margins stood at 47.87%, an improvement from 44.83% in the prior year. This indicates that Merino has managed to effectively control production costs, enhancing profitability.
- EBITDA and Operating Margins: The company reported an EBITDA of ₹207 million, with operating profit margins (OPM) at 9.19%. While there has been a slight decline in operating margins from the previous year (10.99%), the company continues to maintain a solid EBITDA margin, reflecting strong operational efficiency.
- Net Profit Performance: Merino Industries achieved a net profit of ₹122 million, with a net profit margin (NPM) of 5.42%. This reflects consistent profitability despite slight fluctuations in revenue and operating expenses. The company’s ability to maintain a positive NPM is indicative of strong cost control and operational efficiency.
- Earnings Per Share (EPS): The EPS for Merino Industries stood at ₹108.25, demonstrating healthy earnings for shareholders. Given the company’s market position and financial performance, it represents an attractive investment opportunity, particularly for those interested in Merino Industries Unlisted Shares.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Market Leadership in Laminates: Dominates the Indian market, strengthening brand recognition and market position.
- Diversified Business Portfolio: Expansion into interior solutions, agro-business, and IT reduces sector-specific risks.
- Strong Distribution Network: Over 4,000 dealers ensure widespread product availability and efficient customer reach.
Cons
- Dependence on a Single Sector: Heavy reliance on laminates makes the company vulnerable to sector downturns.
- Fluctuating Raw Material Costs: Volatility in raw material prices affects profitability and cost control.
- Regional Limitations: Limited international presence and competition hinder expansion into global markets.
Key Details
| Share Name | Particulars |
|---|---|
| Merino Industries Center Unlisted | ₹3180.00 |
| Shares Price | Per Equity Share |
| Lot Size | 50 Shares |
| 52 Week High | ₹3450 |
| 52 Week Low | ₹3300 |
| Depository | NSDL & CDSL |
| PAN Number | AAACC9186C |
| ISIN Number | INE662B01017 |
| CIN | U51909WB1965PLC026556 |
| RTA | C B Management Services |
| Fundamentals | Value |
|---|---|
| Market Cap (in cr.) | 3,554.82 |
| P/E Ratio | 29.38 |
| P/B Ratio | 2.59 |
| Debt to Equity | 0.53 |
| ROE (%) | 9% |
| Book Value | 1,225.79 |
| EPS | 108.25 |
| Face Value | 10 |
| Total Shares | 11,178,679 |
Financials
| P&L Statement | 2024 | 2023 | 2022 |
|---|---|---|---|
| Revenue | 2,252 | 2,175 | 1,747.89 |
| Cost of Material Consumed | 1,174 | 1,200 | 947.97 |
| Gross Margins (%) | 47.87 | 44.83 | 45.76 |
| Change in Inventory | 44 | -52 | -36.8 |
| Employee Benefit Expenses | 290 | 247 | 207.97 |
| Other Expenses | 537 | 541 | 426.01 |
| EBITDA | 207 | 239 | 202.74 |
| OPM (%) | 9.19 | 10.99 | 11.6 |
| Other Income | 57 | 30 | 48.34 |
| Finance Cost | 26 | 28 | 13.19 |
| D&A | 74 | 67 | 62.8 |
| EBIT | 133 | 172 | 139.94 |
| EBIT Margins (%) | 5.91 | 7.91 | 8.01 |
| PBT | 164 | 174 | 175.07 |
| PBT Margins (%) | 7.28 | 8.00 | 10.02 |
| Tax | 42 | 56 | 42.85 |
| PAT | 122 | 118 | 132.22 |
| NPM (%) | 5.42 | 5.43 | 7.56 |
| EPS | 108.25 | 104.7 | 117.32 |
| Financial Ratios | FY24 | FY23 | FY22 |
|---|---|---|---|
| Operating Margin | 8% | 9% | 10% |
| Net Profit Margin | 5% | 5% | 7% |
| Return on Equity | 9% | 9% | 11% |
| Debt-Equity | 0.53 | 0.48 | 0.25 |
| Current Ratio | 1.13 | 1.38 | 1.39 |
| Dividend Payout | 5% | 9% | 8% |
| Company | MERINO INDUSTRIES LTD | GREENLAM INDUSTRIES LTD | CENTURY PLYBOARDS LTD |
|---|---|---|---|
| Market Cap (₹ Crores) | 3,683 | 6,495 | 18,660 |
| Profitability Margin (%) | 5% | 6% | 8% |
| ROCE (%) | 12% | 12% | 18% |
| ROE (%) | 9% | 14% | 16% |
| D/E Ratio | 0.53 | 1.03 | 0.35 |
| P/E Ratio | 30.31 | 52 | 67 |
| P/B Ratio | 2.71 | 6.02 | 8.42 |
| Book Value per Share (₹) | 1,216.89 | 84.4 | 99.5 |
| Assets | 2024 | 2023 | 2022 |
|---|---|---|---|
| Fixed Assets | 1,275 | 442 | 478.16 |
| CWIP | 37 | 604 | 140.93 |
| Investments | 178 | 144 | 366.74 |
| Trade Receivables | 215 | 175 | 165.28 |
| Inventory | 589 | 581 | 427.9 |
| Other Assets | 305 | 364 | 289.95 |
| Total Assets | 2,599 | 2,310 | 1,868.96 |
| Liabilities | 2024 | 2023 | 2022 |
|---|---|---|---|
| Share Capital | 11.27 | 11.27 | 11.27 |
| FV | 10 | 10 | 10 |
| Reserves | 1,349 | 1,237 | 1,149.94 |
| Borrowings | 722 | 595 | 295.1 |
| Trade Payables | 266 | 204 | 239.58 |
| Other Liabilities | 250.73 | 262.73 | 173.07 |
| Total Liabilities | 2,599 | 2,310 | 1,868.96 |
