Nitco Tiles – A derived Real estate & housing play
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=231
Printed Date: 19/Apr/2025 at 9:25pm
Topic: Nitco Tiles – A derived Real estate & housing play
Posted By: basant
Subject: Nitco Tiles – A derived Real estate & housing play
Date Posted: 27/Aug/2006 at 9:18am
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Nitco Tiles – A derived Real estate cum housing play. When there was a gold rush in This analogy may be repeated in the Indian real estate market while it is not certain that you would make money buying land and selling homes it is certain that you would need floor tiles, glass, electrical fittings etc. So companies manufacturing these items would surely make money. Nitco tiles (CMP Rs 169) is India’s leading tile manufacturer with a fully automated integrated Ceramic tile plant built in technical collaboration with world leaders 'Sacmi Impianti' of Italy. The marble division has a processing facility at Mumbai and the company also has a Cement terrazzo division. The company derives 50% of its business from new construction while the other 50% depends upon the renovation market. This ratio could get skewed in favor of the new construction as the spending on this sector grows at a faster pace over the next few years The per capita consumption in The existing plants at Nitco are running at 100% capacity utilization. To create volume growth the company set up a new plant at Alibaug in May this year. This increased the floor tile capacity by close to 56%. The annual capacity increase of 2.28 million sq. mtrs. shall significantly contribute to the bottom-line in FY 07. The company has installed windmills to generate 7.50 MW of power, which it sells to the MSEB at a rate of Rs 3.5 per unit (to increase by 15 p each year). In return, the company purchases power from the state electricity board at a lower price. This is because the state government encourages clean sources of energy from windmills. In the first quarter revenues from the power generation was Rs 1.5 crore and the management expects to do at least Rs 5 crore fro the full year. NITCO is the highest importer of Marble at 12,816 tons. This accounts for 9.90% of total marble imports in the country. The company also launched a Wooden tiles collection this year. For the past few years the company’s ceramic tiles division has been averaging growth at 40-50%. The marble business does not facilitate this kind of growth as it is quota-based. The growth here is at around 25%. The company is planning to do an acquisition of a wall tile unit or put up a new unit and various options are presently being evaluated.
In the first quarter of FY07 net profit was up 114% at Rs 6.9 crore against Rs 3.22 crore for Q1FY06 even as its net sales jumped 42% on top of a robust volume growth. The management expects the trend to continue as revenues from its new projects have started to kick in from May this year. The return ratios are below 12% which should improve as the new facility starts to contribute and the IPO cash gets fully deployed. The company also increased its realization per square meter in FY 06 as is evident from the table below. This indicates the company’s advent into higher margin items.
NITCO Real Estate: NITCO Tiles has recently entered into the Real Estate business, with the initial project being started at Andheri, Mumbai. Exports: Nitco also focuses on markets abroad and exports about 20% of its Ceramic tiles production all over the world including Recommendation: NITCO Tiles remains a twin play on the Indian housing/real estate market as well as on rising consumer incomes. At a PE of 8.45 times FY 07 the stock merits investment and investors should take positions and add on declines. Source: Company feedback and media reports ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
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Replies:
Posted By: PKB2000
Date Posted: 28/Aug/2006 at 8:32pm
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Oh greaaaaaaaaaaat ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: chic_1978
Date Posted: 28/Aug/2006 at 9:22pm
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Hi Basant
Nice article
Nitco looks attractive at these levels but can i check on a similiar script Pokarna Ltd, its leader in marble manufacturing in India.
------------- happy & wise investing |
Posted By: basant
Date Posted: 28/Aug/2006 at 10:43pm
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Chic: had a very brief look at Pokarna. Financials look very impressive but you know I do not prefer mining stocks as a class. The Markets never give you a high PE and also the life of each company becomes finite (till the mine is exhausted) unless it gets new licenses. Just a personal opinion after all De Beers is also a mining company.Also the with granite mines the finished product does not have any pricing power it all depends on what quality of stome is mined - and that can change very quickly.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: harshbhandari
Date Posted: 03/Sep/2006 at 5:11pm
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Hi!! Basant,
The price has gone up to Rs.206 within a week of your article. Is it still worth buying. What is your target price or expected appreciation time frame?
I am keen on having a portfolio of multi-baggers- what would you recommend.
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Posted By: basant
Date Posted: 03/Sep/2006 at 5:21pm
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Hi,
Yes it did shoot up and from the way it went up it appears that some institution wants to load up on the stock very fast.You would know timing the market is never possible so if you want to put in fresh money you may buy 25% of your desired quantity now. Since the run up has been steep we would get a chance to get back in so further buying could be contemplated at those times.
More-over once you buy an initial quantity you gain from both sides if the prices fall you could buy more if they rise your stock will be in profit.
I generally prefer taking an initial position the moment the idea looks good and then loading on as prices recede.
Regards,
Basant ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 19/Oct/2006 at 8:16pm
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The September quarter 2006 saw Nitco report some good numbers the net profit at Rs 8.89 crores was up by 28.8% from 6.90 crores in the previous quarter
The company increasd its sales by 10% to 97.1 crores from 87.36 crores in the previous quarter.The management said that they had an internel target of increasing sales by 5%each month. That would mean an annual increase in sales of close to 70% - 80%. We would however take the figure at 50%.By next year the company's new plants would start adding to the bottomline.
The operating profits increased by close to 11% and the real increase in profits came from a reduction in interest costs which fell to Rs 1.84 crores from Rs 3.29 crores in the previous quarter.
The company is also sitting on a land bank of 200-300 acress across cities like Bombay, Delhi, Ahmedabad.
The stock remains is attractively priced and should give significantly good returns for long term investors. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 28/Oct/2006 at 8:28am
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basantji,
nitco is drifting down despite good results.
ideal time to buy?, or any bad news?
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Posted By: basant
Date Posted: 28/Oct/2006 at 10:13am
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It is best to buy a stock when the price falls and the fundamentals improve rather then vive versa.. Nitco is a good stock to accumulate. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 29/Oct/2006 at 10:25pm
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Thanks basantji,
planning to enter nitco tomorrow.
regards,
sun
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Posted By: Bobby
Date Posted: 09/Nov/2006 at 11:23am
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it's up again(5.50%)to 213 level & it had gone down to 195 level two days earlier.
why it is so volatile in comparision to sensex? |
Posted By: basant
Date Posted: 10/Nov/2006 at 12:17pm
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For investors to take positions at the fall maybe. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: s_praharaj
Date Posted: 11/Nov/2006 at 8:21pm
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By next year the company's new plants would start adding to the bottomline.
Basant,
As far as my knowledge about the company goes, they have a tile factory at Pen near mumabi. It produces only ceramic tiles
which have very limited market. They sell vitrified tiles by importing from china. Most of their sales come from vitrified tile sales. They have people in China and long term agreement with factories in China. Evel labels and packings are also made in China. As far as vitrified tiles are concerned it is totally a retail play. Of course they have a better margin than the local vitrified tile producers such as HR Johnson, Murudeswar Ceramics and Bell ceramics. But everything depends on the import policy of India.
Ceramic tiles have limited market now and players are more. If they have added capacity, it may be only for ceramic tiles, in which segment the demand is less and supply is more resulting in less margin. ------------- Shashi Praharaj |
Posted By: basant
Date Posted: 11/Nov/2006 at 8:28pm
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Yes, you have pointed out some relevant things but the co. trades at a low PE of about 10 times current year. Guess that this captures the market dynamics. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deveshkayal
Date Posted: 12/Nov/2006 at 10:17am
| As Bharat pointed out,then why Murudeshwar Ceramics is not giving returns like Nitco. I have invested in this stock.Should i get out of this. |
Posted By: basant
Date Posted: 12/Nov/2006 at 10:23am
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I have little idea about Murdeshwar but generally Nitco is the leader in this segment and today theu announced another tie up from a Chinese company. The Management reiterated that it would grow at between 40%-50%. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 11/Dec/2006 at 5:03pm
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Franklin bought about 500,000 shares of Nitco at Rs 243 in a bulk deal a couple of days back.. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: chic_1978
Date Posted: 11/Dec/2006 at 6:34pm
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Basantjee
This script is highly volatile offlate
Do u think its worth buying in the crash .....  ------------- happy & wise investing |
Posted By: kulman
Date Posted: 13/Dec/2006 at 7:41pm
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Investment Arm of Govt of Singapore has also picked up bulk quantity of NITCO @ 237 odd.
I wonder whether Kolkata's Kautilya* is their advisor!?
I sincerely hope that the concerned does not mind this, even if he minds, I won't mind!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 13/Dec/2006 at 8:19pm
The long term looks fine to me but I think you have this unfortunate co-incidence of getting in higher so please do not chase the price. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 24/Dec/2006 at 6:47pm
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Here is an excerpt from Karvy's research report dated 22nd Dec '06:
We recently met up with the management of Nitco Tiles, and based on the inputs provided, we are revising downwards our FY07E earnings by 10% to Rs19.5.
We had earlier factored 40% volume growth for vitrified tiles in FY07E, and similarly we expected 38% volume growth in the ceramic tiles division. On the back of lower then expected performance from both the divisions, we are decreasing the volume growth estimates in vitrified tiles segment to 35% from our earlier assumption of 40% and for ceramic tiles division to 32% from our earlier assumption of 38% for FY07E.
However, we are not changing our FY08E numbers. Due to the above mentioned reason, we are decreasing our sales estimates from Rs4,724mn to Rs4,584mn for FY07E. Consequently net profits estimates for FY07E works out to Rs434mn from our earlier estimates of Rs476mn.
On our revised earnings estimate, we expect the company to report an EPS of Rs19.5 for FY07E. We have not changed our FY08E and our price target is based on 8x FY08E EPS of Rs27.7. We thereby maintain our price target of Rs222. At the current market price of Rs248 the stock is trading at 12.7x FY07E and 9.0x FY08E earnings. We rate the stock as Underperformer.
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Actually we should not be discussing this report here, but somehow it's not convincing. It seems someone wants to buy at lower levels and hence such reports are taken out.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 24/Dec/2006 at 8:45pm
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On our revised earnings estimate, we expect the company to report an EPS of Rs19.5 for FY07E. We have not changed our FY08E and our price target is based on 8x FY08E EPS of Rs27.7. We thereby maintain our price target of Rs222. At the current market price of Rs248 the stock is trading at 12.7x FY07E and 9.0x FY08E earnings. We rate the stock as Underperformer.
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The markets shall start discounting Fy 08 very soon. I am not sure what that research guy at Karvy is trying to do. If Fy 08 EPS would remain unchanged then I doubt if the stock would go down first (for Fy07) and then recover sharply "V shaped" (for Fy 08)!!! Yes, these reports are good for quantitative numbers not for buy and sell decisions.  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 18/Jan/2007 at 9:15pm
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I just saw Karvy release a price target of Rs 332 on Nitco Tiles. Now can anyone ask those blessed souls about what changed their opinion from short term sell etc etc to almost a 30% upward price revision. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PrashantS
Date Posted: 18/Jan/2007 at 10:19pm
But why would they do this to buy before others bought it.... or did nitco discovered soemthign new.....??? |
Posted By: kulman
Date Posted: 18/Jan/2007 at 10:32pm
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This shows their analytical skills! No wonder their AB has the widest smile which even a 29" TV can't accomodate!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 18/Jan/2007 at 10:32pm
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SOmethings are better understood then said. To take this point further there are two options on why any brokerage could do like this (no specifics here):
1) The short term sell call was an error in judgement so that tells us about the level of research these guys do.
2) They did it to take position first and then once that position was created they changed back the rating.
3) The company comes out with some positive news.
I did not hear anything on point (3) above so the options are there for any investor to choose. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PrashantS
Date Posted: 18/Jan/2007 at 11:43pm
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yes that is right.....they get in first and get out first...but again people should not follow these reports...and stuf...or their calls................but people do loose..... i see so many people buying at high rates and asking Udayan what to do....if u see carefully ....he does smile...smart guy.....does he also do trading...i heaard that he has his own company...to do this...i am not sure how true this can be....but is it possible that these guys in Tv18 trade..??? |
Posted By: xbox
Date Posted: 18/Jan/2007 at 4:42am
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Well I know for sure that Udyan M does not trade. If he does trading, he is out of the job. With this understanding he is standing there.
He is not employee of TV18 as well. He is consultant/freelancer. As per own personally view, he has gr8 common sense and I like his this attribute very much. I watch pre-market chats for this.
He is not the one to look for numbers/recommendations etc. His interviews and presence of mind is commendable but then he is well paid for this and shortly we will be charged to watch him (thanks to CAS).
All in all, he alone attributes to major chunk of tv18's success. That another guy, Senthil is also very influential guy but not fit for live shows. Sooner the better tv18 ppl realizes that but he was the face of cnbc-tv18 for long time.
Other ppl are good for nothing including mitali, rahul or paridhi. etc. etc. Mitali may comeout from this list as she gets lessons from Udyan himself.
If Udayan is sole torch bearer at cnbc-tv18 then there are quite a lot at awaj. Awaj is much more interesting channel for many ppl.
That Ashu guy was also great but then ek miyan me do talwar nahi ...
------------- Don't bet on pig after all bull & bear in circle. |
Posted By: kulman
Date Posted: 18/Jan/2007 at 7:22am
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Hmmm....interesting study...........of TV anchors.
The discussion on Nitco Tile is getting volatile!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 18/Jan/2007 at 8:44am
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Udayan does not trade nor does he own shares of any company except ESOP's in Tv18. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 01/Feb/2007 at 12:11pm
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UBS Securities along with a couple of other funds picked up some 720,000 shares yesterday at Rs 240. Since UBS has taken over Standard Chartered Mutual Fund and Nawal bir Kumar would remian with the StanC MF I expect some ideas that Nawal has been following to be followed by UBS also. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 24/Feb/2007 at 9:43pm
Basant jee.....how do u look at these developments?:
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 24/Feb/2007 at 9:31am
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Nothing seems clear now because only when the end use of the funds are disclosed can we take a judgemental call on this dilution. However as I have mentioned earlier companies that grow in excess of 40% CAGR and whose RoE is less then that would need to dilute equity. It does not matter as long as the http://www.theequitydesk.com/forum/forum_posts.asp?TID=119 - RoE is maintained . However in Nitco's case the stock is not expensive so it hurts. Ideally I like a company to dilute equity at a higher PE - that makes for a lower dilution. Anyway business fundamentals are robust so we need not worry without looking at full details.
Generally there is a price appreciation at the time of a QIP and then the price settled down once that demand has been met. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 10/Apr/2007 at 4:30pm
| Any new updates on this board about equity dilution and end use of funds?Is it still a buy? |
Posted By: basant
Date Posted: 10/Apr/2007 at 4:45pm
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No updates really but does have potential to do well from these levels also. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 10/Apr/2007 at 8:25pm
| Thank you... |
Posted By: Rinku
Date Posted: 11/Apr/2007 at 2:53pm
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There is a rumor Nitco Tiles is likely to move up after the sale of Nitco Paints to a US-based paints major. Any updates? |
Posted By: Rinku
Date Posted: 12/Apr/2007 at 11:28pm
Sherwin-Williams acquires Nitco Paints
United States-based paints and coating firm Sherwin-Williams acquired 100% stake in Nitco Paints for an undisclosed amount, reports DNA.  ``A deal has been signed with Sherwin Williams, wherein they are buying out Nitco Paints. I can`t disclose more information at this stage, though I will be a part of Sherwin Williams,`` said Sanjiv Batra, CEO, Nitco Paints. Nitco Paints, an associate company of Nitco Tiles, javascript:openNewsMain%28/shares/company/quoteShow.php?icode=NITTILES%29 - (Q , javascript:openNewsMain%28/shares/news/corporateNews.php?cSelect=5&icode=NITTILES%29 - N , javascript:openNewsMain%28/shares/company/chartShow.php?cSelect=2&icode=NITTILES%29 - C , javascript:openNewsMain%28/shares/company/financial.php?cSelect=3&icode=NITTILES%29 - F) * is a manufacturer of exterior paints and coatings. The company is mainly focused on Western India and had reported sales of Rs 800 million in 2006/07. The shares of Nitco Titles closed at Rs 192.00, up Rs 6.25, or 3.36%. The total volume of shares traded at the BSE was 13,791. (Wednesday) |
Posted By: basant
Date Posted: 12/Apr/2007 at 11:37pm
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All cash sale deals do create wealth for shareholders and also Nitco holds some very valuable properties also. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 12/Apr/2007 at 11:48pm
| should we expect some dividends?Do you own nitco(I am sorry if you think that vry personell question) |
Posted By: basant
Date Posted: 12/Apr/2007 at 11:52pm
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No i do not own it. Dividends - that would be too speculative to guess. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 30/Apr/2007 at 4:41pm
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Company's Net profit was at Rs. 13 cr vs Rs. 7.5 cr. Sales at Rs. 125 cr vs Rs. 82 cr. |
Posted By: basant
Date Posted: 30/Apr/2007 at 4:50pm
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I was particularly uninpressed to hear the management say that the large base will hinder the 50% growth in the coming years. ANyway the valuations did not discount the 50% growth so even if it moderates down a bit prices should not fall. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 30/Apr/2007 at 8:27pm
| Like cements I guess tile business is pretty much cyclical |
Posted By: xbox
Date Posted: 30/Apr/2007 at 5:48am
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Avoidable. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: Rinku
Date Posted: 14/May/2007 at 4:35pm
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Tiles to realty Nitco Tiles witnessed a 51 per cent revenue growth and a 90 per cent increase in net profits in FY-07. While the company continues to enjoy robust volumes in its ceramic and vitrified tiles business, investors need to track certain developments, which may have significant earnings implications. Nitco recently entered into a joint venture with a Chinese company for sourcing vitrified tiles over the next three years. With increased demand for vitrified tiles (a low-cost substitute for natural granite), higher Chinese sourcing could boost revenues. With exemption from anti-dumping duties on such imports, Nitco may have an edge in the pricing of such products compared to local players. While the core business remains robust, we are cautious about the company's plans to enter real-estate through its 100 per cent subsidiary, Nitco Realties. The company has plans for six projects mostly in Mumbai and Thana, including an IT park at its mosaic tile factory premises. While success in this foray may improve consolidated earnings over the long term, we prefer to now value the company for its tiles business alone. The company lacks experience in the real-estate business and may have to compete with bigger players to establish itself. Hindu business line |
Posted By: basant
Date Posted: 14/May/2007 at 4:40pm
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The comment about the real estate business is justified. But as investors we need to realise that at the rpesent valuation we are not paying anything for the real estate business so if the company gets its act together it might be a bonus- the best thing would be to sell it off and concentrate on its main business but that is not how corporate India works!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nil5624
Date Posted: 30/Sep/2007 at 12:10pm
 FLASHBACK
The NITCO Group came into existence in the year 1956 with the formation of a partnership firm at Delhi under the name of The Northern India Tiles Corporation (Delhi) for manufacturing mosaic tiles. The partners of this firm were Mr. A.N. Talwar (HUF), Mr. P.N. Talwar and Mr. W. N. Talwar.
In the year 1964, another partnership firm was formed under the name of The Northern India Tiles Corporation (Bombay), with Mr.A.N.Talwar, Mr. P.N.Talwar, Mr.W.N.Talwar, and others as partners to manufacture mosaic tiles at Thane, Mumbai, wherein by an agreement, a license was granted by The Northern India Tiles Corporation (Delhi) to use the brand "NITCO". NITCO Group is engaged in segments relating to construction industry, which includes building products, manufacturing tiles, paints and other construction activities. Our Company is the flagship company of the group. Mr. Vivek Talwar and Ms. Poonam Talwar, son and daughter of Mr. Pran Nath Talwar respectively, joined the Nitco Group and are now in charge of the management of our Company as well as our group companies. Our Company Nitco Tiles Private Limited was incorporated on July 25, 1966 at Delhi to take over the business of manufacturing and marketing of tiles from The Northern India Tiles Corporation (Bombay). On May 11, 1973, the registered office of the Company was shifted from the Union Territory of Delhi to the State of Maharashtra vide order of the High Court at Delhi. Subsequently, our company was converted into a public limited company with effect from January 25, 1996. Pursuant to this, the name of our Company changed to Nitco Tiles Limited. Pursuant to the take over of the business of the partnership firm, our Company started to manufacture mosaic and terrazzo tiles at Thane, Maharashtra. In 1984, we started our operation at Kanjurmarg, Mumbai for processing and distribution of imported marble in India. Growing further, in 1995, we began the implementation of a green field project for manufacture of ceramic floor tiles at Alibaug, Maharashtra and started the commercial production of ceramic tiles in 1997. In 2002, we started one more marble processing unit at Slivassa. In 2004, we scaled up operations of outsourcing vitrified tiles from China. Currently, our product portfolio comprises of ceramic tiles, vitrified/wall tiles, cement terrazzo tiles, pavers and marbles etc. In 1995, our Company commenced to set up a project for the manufacture of ceramic tiles at Alibaug in Maharashtra. The project cost was appraised by ICICI at Rs. 812 mn. The cost of setting up the project was proposed to be financed through a mix of debt of Rs. 451 mn, promoter's contribution of Rs. 222 mn and public issue of equity shares of Rs. 139 mn. for which our Company received the SEBI acknowledgment card in February 1997. However, we decided not to proceed ahead with the public issue due to bad market conditions. We successfully completed the project in 1997 with a delay of ten months and cost overrun to the extent of Rs. 80 mn. 2006 -Nitco Tiles enters into CMA with Foshan Lungo Ceramics ------------- PLZ READ THE OFFER DOCUMENT B4 INVESTING. |
Posted By: Junior
Date Posted: 14/May/2009 at 2:53pm
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Dear Basant,
Do you think NITCO is a good buy now. Its at sub 40 levels with a mkt cap of Rs. 123 crores and a Price/book: 0.25 |
Posted By: basant
Date Posted: 14/May/2009 at 3:17pm
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Its really very cheap but I have not looked at it for a while. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: chaudhuris
Date Posted: 15/May/2009 at 5:58pm
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I have been buying some Nitco from a valuation perspective. Valuations are very cheap if you look at PE, PB, Debt-Equity. Operating cash flow is decent but they are expanding their operations currently.
They are targeting 200 showrooms in the next few quarters and are also planning to enter the sanitaryware business. They have unlocked some real estate value from their Mumbai factory and will generate some cash flow from there in next 2-3 years. They are also launching some new products. I feel it has attractive valuations compared to its peers. An eye needs to be kept on its expansion plans and how it performs in those. Real estate is here to stay in India and long term if one looks at valuations this seems like a no-brainer. PS. Unfortunately I can't find their annual report on their site. That's not good. ------------- Only when the last tree has been cut down Only when the last river has been poisoned Only when the last fish has been caught Only then will you find that money cannot be eaten. ~ Cree Philosophy |
Posted By: vijaygawde
Date Posted: 02/Sep/2009 at 7:34pm
This one definitely looks cheap on valuation. have you had a re-look ? ------------- Diversification is protection against ignorance, it makes little sense for those who know what they’re doing. |
Posted By: basant
Date Posted: 02/Sep/2009 at 8:34pm
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Not quite can you summarize it please? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vijaygawde
Date Posted: 02/Sep/2009 at 8:55pm
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Equitymaster has come out with a good report on Nitco under their Hidden Treasure on 14 Feb 2009. The report is available as a http://www.equitymaster.com/htr/download/14022009NITCO110.pdf - FREE Sample will summerize the valuation in my next post ------------- Diversification is protection against ignorance, it makes little sense for those who know what they’re doing. |
Posted By: amol.karale
Date Posted: 05/Sep/2009 at 7:58am
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Does anyone know what is the outstanding debt of Nitco as of 31st Mar 2009? I don't see there annual report 2009 anywhere? Nitco's total liabilities as of Mar 2008 were 893 Cr. Curious to know what is the current financial picture. Can anyone plz reply? ------------- Amol |
Posted By: praveen
Date Posted: 07/Sep/2009 at 5:02pm
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Bansantji, could you opine on the management. According to some old timers management is big suspect here.
------------- The quest for knowledge is a never ending Journey |
Posted By: basant
Date Posted: 07/Sep/2009 at 5:07pm
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Unfortunately I have lost complete track of this one but check from the RoE, debt levels etc.But this is not a great business to be in from the broad point of view better to be with the paints or the AC companies if one wants to ride this housing construction theme. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Hitesh Shah
Date Posted: 07/Sep/2009 at 5:55pm
In the last year or so there's been a complaint about a redevelopment project in Bombay: http://www.google.co.in/url?sa=t&source=web&ct=res&cd=3&url=http%3A%2F%2Fwww.expressindia.com%2Flatest-news%2Fproperty-sealed-but-this-68yrold-thanks-mumbai-police%2F228072%2F&ei=kPSkSuCdAY7k6gPktKXbCw&usg=AFQjCNEQNZHV96gKj7BoWnJPgsR4L2EW-Q&sig2=I0bN07Nh3ZX_jGG0xmHb5Q - link ------------- |
Posted By: amitdip
Date Posted: 14/Sep/2009 at 12:58pm
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The Directorate of Revenue Intelligence (DRI) officials have arrested four senior executives of Nitco Tiles Ltd
http://www.dnaindia.com/mumbai/report_four-held-for-customs-duty-evasion_1286778 |
Posted By: somu0915
Date Posted: 14/Sep/2009 at 7:14pm
| This is news ! |
Posted By: neerajlulla
Date Posted: 14/Sep/2009 at 7:55pm
VERY BAD NEWS ------------- buy and forget for long term |
Posted By: amol.karale
Date Posted: 12/Oct/2009 at 5:08am
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Nitco's current Market cap is 180 cr. which is less than it's FY09 net current assets of 368 cr. This is very cheap valuation. However, company's future prospect is not that good. ROE is just in between 4 to 9% for last four years. Company is highly capital intensive. It's all time high profit was 57 crore in FY08 on total assets of 809 crore. i.e Company will have to invest another 809 crore to double it's profit from this level. If you compare this figure with Blue star, you will notice that company was able to generate 180 crore of profit on the total assets of 391 crore. I want to exit from Nitco in near short term. Please let me know your thoughts. ------------- Amol |
Posted By: basant
Date Posted: 12/Oct/2009 at 9:47am
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I would have also thought like you. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manish_okhade
Date Posted: 13/Oct/2009 at 1:05pm
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My thoughts are as below: 1) Company is highly capex driven and FCF is -ve for last 2 years
2) Things were good till FY07-08 but turned bad from FY08 and company faced troubles due to slow down in real estate.
3) Sale is increasing in FY09 by 4% but expenses too. Increased raw material cost and interest charges are driving the profits down.
Evaluation:
1) Q1 FY10 PAT is 06 Cr up by 600% to Q4 FY09 !!!
2) Nitco's IT Park is near completion in Thane. Rental income may start
pouring in. Nitco has paroperties in Mumbai but they kept construction
on hold due to slow down. If real estate revives then it will add further
to bottom line.
3) Metrics look interesting:
Lets watch it for one or two more quarters. Real estate and infra sector is reviving. Recent HDFC Loan disbursement figures are good. And all goes well then this stock is ready to shoot!!!
Eventually all depends on how company manages the debt in next few years and how fast real estate pick up. So better wait and watch.
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Posted By: Mukesh C
Date Posted: 10/Sep/2010 at 12:50pm
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file:///D:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml -
file:///D:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml - |
Posted By: Mukesh C
Date Posted: 24/Apr/2011 at 1:13pm
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The per capita consumption in Sir, From Where can I get these Numbers.... I mean some official website capturing imports of tiles and marble in the country. |
Posted By: jamesvaikom
Date Posted: 04/May/2011 at 1:20pm
| The company posted good results in this quarter also. Hope management won't do any dishonest activities in future. |
Posted By: srisaurabh2000
Date Posted: 18/Apr/2012 at 11:10pm
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Anyone tracking this? After the DRI fiasco in 2009 these folks have got in professional management. The CEO is an IIT Roorkee/IIM alumni and some more folks in strategic and marketing positions are from similar backgrounds. This is pretty cheap. Kajaria ceramics has better margins as they manufacture vitrified tiles. Nitco on the other hand imports vitrified tiles as they believe as this gives flexibility in design compared to capex that will incurred for setting up a similar plant. They have considerable real estate which are being developed. And this should act as a cushion against the debt.
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