Comments
Wallfort Financial
Tilaknagar Ind (Buy)
CMP: ₹58.95
Target: ₹77
Tilaknagar Industries (TI) registered a below expectation volume growth of 17 per cent in FY14. The brand value growth of gross sales stood at 24 per cent and the net sales growth at 15 per cent for FY14. The lower volumes were on account of the stagnation witnessed in the Tamil Nadu market. During the quarter, the raw material price remained at elevated level. Both these reasons put pressure on the overall margins. The EBITDA margin for Q4FY14 stood at 16.84 per cent which was flat on y-o-y basis. The EBITDA for the whole year was down by a couple of percentage points. All segments (Brandy, Whisky, Rum, Vodka and Gin have registered a decent growth in FY14. During the quarter TI acquired the IMFL business of IFB Agro that includes two popular brands — ‘Volga’ (Vodka) and ‘Blue Lagoon’ (Gin). This acquisition is in line with TI’s strategy of strengthening its presence in the Eastern India. These two not only give TI a higher penetration into this market but also enable it to diversify its products.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.