Kokuyo Camlin

Kokuyo Camlin, formerly known as Camlin is stationery company based in Mumbai. Kokuyo of Japan holds around 69.26% stake in Kokuyo Camlin while the original promoters, the Dandekar’s own 5.73%. The company declared its numbers yesterday after market hours and it was a turnaround, all around. Posting a net profit of Rs.20 lakh, this was a turnaround on a QoQ from a loss of Rs.3.5 crore and YoY loss of Rs.4 crore. YoY net sales rose 17% at Rs.109 crore. Sequentially, though topline fell 3.5%, a 7% drop in operating costs, led by raw materials helped the turnaround. EBITDA came in at Rs.4 crore v/s loss of Rs.5 crore (YoY) and loss of Rs.3 crore on QoQ.

Overall it has been a good Q3 for the company. The profit is small and there is worry about its sustainability in the coming month. Its Net profit margins are wafer thin at less than 1%. Its equity stands at Rs.10 crore and reserves is at Rs.198 crore. One FII, New Vernon holds 2.8% stake. The company enjoys a strong brand equity and high investor fancy on the bourses.