RATING

RECOMMENDATION

Sell

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

ISIN

INE176F01019

Face Value

₹10.00

Total Share

56,17,000

Total Income

₹20,465.88 L

Profit After Tax

₹295.72 L

EPS

₹5.30

P/E

19.81

P/B

1.76

Market Capitalisation

₹58.98 Cr

Enterprise Value

₹128.01 Cr

Book Value

₹59.68

Intrinsic Value

₹161.60

Earnings Yield

5.05 %

Sector

Consumer Discretionary

Sub-sector

Textile

Category

Delisted

Cashflow - Operations

₹699.33 L

Cashflow - Financing

₹746.94 L

Kamarhatty Growth

Compounded Sales Growth

  • -2.71%

    1 Year

  • 6.68%

    3 Year

  • 6.03%

    6 Year

Pro Only

Compounded Profit Growth

  • 46.28%

    1 Year

  • 16.77%

    3 Year

  • NA

    6 Year

Pro Only

Return On Equity

  • 8.82%

    2021

  • 6.50%

    2018

  • 40.28%

    2016

Pro Only

About Kamarhatty

  • Kamarhatty Company Limited (KCL) is primarily engaged in the production and sale of jute in India. The company deals in various products such as Hessian, sacking, floor covering and furnishing, yarn and twine, jute non-woven welt, ropes, jute shopping bags, jute promotional bags, jute wine bottles, jute drawstring bags and jute ladies bags.
  • In addition, the company offers various fabrics used for floor coverings and furnishings, including natural and dyed jacquard dobby floor coverings, flatbed jute carpets for conversion into rugs, and wall-to-wall flooring, school matting, and other furnishing clothes. Further, it produces various yarn and twine products, such as twisted yarn, precision wound yarn for the carpet industry, dyed yarns, twines, and ropes. The company also manufactures and sells packing and packaging materials, including kraft paper; owns and operates warehousing spaces, as well as engages in the generation of power from biomass
  • The company sells its products in India as well as overseas. 
  • Investments of over USD 7 million have been made in KCL over the last 5 years towards the setting up of a state-of-the-art fine yarn unit, a bleaching, dyeing unit and in scaling up and modernization of an existing capacity. This investment in capacity addition and diversification has had a direct impact in terms of the company's top line, operating costs, production, and more importantly productivity.
  • The company was set up in 1877 under British managing agency Jardine Henderson Ltd. Currently, the company is a source of employment for over 5000 and above people.
  • Kamarhatty Company Limited was founded in 1877 and is based in Kolkata, India.

  • Kamarhatty IPO Details

The company's stocks were listed on the Calcutta stock exchange on February 28, 1997, but for undisclosed reasons, the company's shares were suspended from the Calcutta stock exchange. Currently, the company is not planning to raise funds through an IPO. 

  • Kamarhatty Subsidiaries

  • Kamarhatty Power Limited, subsidiary of the company, which is non-operations since May, 2011. The Kamarhatty Power Limited was compelled to shut down its 6MW Biomass based Power Plant at Raina, Burdwan from 04.05.2011 due to non recovery of cost for non fixation of supportive tariff rate and non release of eligible dues from WBSEDCL aggregating to Rs. 930.87 lakhs to whom the entire power was sold.

Kamarhatty Business Model

  • The company manufactures jute and jute allied products such as jute bags, yarn, hessian, sacking, floor covering and furnishing, jute wine bags, jute wine glasses, jute promotional bags, and yarn, flax and kraft paper, which are sold in India as well as overseas. The company also owns and operates developed warehousing space of over 0.3 million sq. ft. on the premises of the jute mill.
  • Kamarhatty Revenue Segmentation

  • Other Operating Income
  • Jute Goods
  • Yarn and Flax
  • Kraft Paper
  • Other Income
  • Kamarhatty Product & Services

  • Hessian
  • Sacking
  • Floor Covering
  • Furnishings
  • Yarn & Twine
  • Jute Non-Woven Felt
  • Ropes
  • Jute Bags
  • Paper
  • Warehousing
  • Kamarhatty Assets

Total assets as on March 31,  2021:

Particulars(Amount in Rs. Lakhs)
Freehold land

164.52

Buildings
684.58
Plant and Equipment
3019.88
Electric Installation
134.45
Furniture and Fixtures and other equipments
41.69
Vehicles
48.25
Co-generation47.03
Computers10.14
Tubewell and water supply7.74
  • Kamarhatty Industry Overview

Industry Statistics

  • Jute is the name of the plant or fiber used to make burlap, hessian, or gunny cloth. Jute is one of the most affordable natural fibers and second only to cotton in the amount produced and variety of uses. Jute fibers are composed primarily of the plant materials cellulose and lignin.
  • India is the largest producer of Jute followed by Bangladesh and China. The major jute producing states are West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura. Jute Textile Industry is one of the major industries in eastern India, particularly in West Bengal. In 2021, Jute supports around 40 Lakh farm families and provides direct employment to 2.6 Lakh Industrial Workers and 1.4 Lakh in the tertiary sector. Jute is also seen as a substitute for harmful polythene. 
  • The global jute bag market size reached US$ 2.3 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 3.8 Billion by 2027, exhibiting a CAGR of 8.94% during 2022-2027.
  • In India, jute production stood at 5800 thousand bales(1 bale = 180kg) in FY21, whereas the total jute consumption stood at 7900 thousand bales for FY21.
  • As per statista, for the FY22, the procurement price of jute across India was Rs.4500 per quintal. The price increased by 1.6% over the last year.
  • Jute's traditional role, which limited its use to packaging, has now changed. It is a part of the luxury apparel and accessory market. The market for jute is expanding mainly because the global fashion industry is driving efforts to revolutionize this fibre. More designers are experimenting with jute to create haute couture and accessories like belts, bags, hats, and home textiles.
  • Leading players in the segment are R Kumar and company, Gloster Limited, Jaikishan Dass Mall Jute Products Limited and Eco Jute private limited. 

Government Initiatives

  • Jute Packaging Materials Act, 1987: The provisions of the Jute Packaging Material (Compulsory use in Packing Commodities) Act, 1987 made it compulsory to pack 100% production of food grains and 20% sugar production in jute bags.
  • Jute SMART: In 2016, Jute SMART was launched to bring transparency to the jute sector.
  • National Institute of Design (NID) constantly explores new uses of jute fibre on mass scale. 
  • Jute Technology Mission: The Jute Technology Mission has been a major component of the National Jute Policy and is the vehicle for implementation of multifarious programmes in the jute sector.
  • In August 2021, the Indian federal government amended the Plastic Waste Management Rules, 2016, prohibiting identified single use plastic items in India, which have low utility and high littering potential. Thus will in turn promote jute products.

Kamarhatty Awards & Achievements

CNBC-TV18 and ICICI Bank Ltd organise the Emerging India Awards every year to salute the resilience and strength of character of India’s small and medium enterprises. Kamarhatty was selected for this honour after a careful screening of over a million small and medium enterprises from over the country. The screening was done by CRISIL, India’s premier rating agency.

Kamarhatty Strengths

  • Experienced management and a long track record of operations. The long track record of operations and the experience of management spanning over two decades have helped the company maintain healthy relations with its customers, enabling it to maintain steady revenue growth.
  • The company has a strong brand base, which leads to shifting the burden of rising prices to the end consumers. With COVID-19 in place, there was an increase in the prices of inputs. However, demand remained strong during the year, partially offsetting the volume loss.
  • The company has an A rating from Mira Inform, which indicates good credit worthiness. The company has an above-average financial risk profile, led by a modest net worth, a comfortable hereinabove-average above average debt protection metrics, which makes it averse to financial risk exposure. 
  • Acuité has assigned and reaffirmed a long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and reaffirmed a short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) to the Rs. 59.00 crore bank facilities of Kamarhatty Company Limited (KCL). The outlook is ‘Stable’.

Kamarhatty Shortcomings

  • Working capital intensive nature of operations. Working capital intensive nature of operations of the group is marked by high inventory days, creditor days and debtor days.
  • The company has labour intensive operations and thus, it is vulnerable to labour union and strikes which affects the productivity of the mill. The employees' cost constitutes a huge portion of the expenses of the company.

Kamarhatty Opportunities

  • In August 2021, the Indian federal government amended the Plastic Waste Management Rules, 2016, prohibiting identified single use plastic items in India, which have low utility and high littering potential. Awareness to use eco-friendly, bio degradable jute goods across the world will keep jute goods always in demand
  •  The jute bags are durable along with various properties such as re-useable, recyclable, biodegradable, cost-effective which makes them stand on the front side among other material bags such as plastic bags and paper bags. The jute bags are strong which makes them capable of carrying more weight. On the back of this factor, jute bags are more in demand in food industries to store and transport food grains. The jute bags are long-lasting, they do not tear easily as plastic and paper bags which makes them popular among the end users.

Kamarhatty Threats

  • The company faces shortage of raw materials. Non-availabil­ity of sufficient quantity of superior quality raw material. Lack of incentive to farmers to take up jute cultivation on regular basis affects the jute crop and the shortage of workers posing threat to maintaining desirable capacity utilization.
  • The company faces competition from Bangladesh in the export market due to inherent disadvantages in wage and power costs.
  • The company faces a continuous increase in dearness allowance leading to a rise in wage costs is a major area of concern.
  •  The company is getting tough competition from new grass root units because they operate at lower wage cost & overheads as compared to the existing old units.
  • Heavy dependence on erratic Indian jute supply forced some of the countries to construct their own jute mills where raw material is collected from Bangladesh. The West European countries, Japan, and Korea have established jute mills of their own and some of them are using substitute products of jute as raw material e.g. Manila hemp, polyester fibres, and Kenaf fibres.
Kamarhatty Rating

  • RECOMMENDATION

    Sell

  • Kamarhatty Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

21/07/2022

Registered Date

28/09/1877

Planify Ticker

KAMCL

Reg Office: 16A Brabourne road ,Kolkata 700001 India

Visit Website

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This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

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• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Demat Account = DP ID + Client ID. (16 Characters )
• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
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• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
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We at Planify do the valuation based on 2 methods.
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