GICSIndustry:CommercialServices&SupplieslSubIndustry:OfficeServices&SupplieslWebsite:www.camlin.

com

Camlin Ltd
KeyStockIndicators
NSETicker:
CAMLIN
BloombergTicker: CAMLN:IN
Facevalue/Share:1.0
Div.Yield(%):
1.3

CMP(ason30Nov2010Rs/share):
52weekrangeupto30Nov2010(Rs)(H/L):
MarketCapason30Nov2010(Rsmn):
EnterpriseValueason30Nov2010(Rsmn):

39.9
53.75/22.10
2,416
2,820

Sharesoutstanding(mn):
FreeFloat(%):
Averagedailyvolumes(12months):
Beta(2year):

CamlinLtd(Camlin)wassetupasaprivatelimitedcompanyin1946andlaterconvertedintoapublic
limited company and listed on the Bombay Stock Exchange in 1987. Camlin enjoys a leadership
positionwithitsbrandsCamel,CamlinandExaminitsrangeofstationeryproducts.

KEYHIGHLIGHTS

Astrongbrandimageandwelldiversifiedproductportfolio

Camlin is one of Indias strongest brands across various stationery and colour products. Camlin
geometryboxes,writingink,crayons,Florapencilsandsketchpensaresomeofitsmainproducts.In
the stationery segment (59% of FY10 revenues), the company offers scholastic and officeuse
materials. The colour segment (41% of FY10 revenues) includes scholastic, hobby and fine arts
materials.

Astrongdistributionnetworkandinnovativemarketingstrategies

Camlin has a wellestablished distribution network comprising selfowned depots, 1,500 distributors
and more than 300,000 retailers across India. Camlins innovative marketing strategies such as
directlymarketingproductstoschoolsthroughanexclusiveschoolactivationteamandorganizingAll
IndiaCamelColorcontestshavekeptitaheadofotherplayersinthesamespace.

Keydriver:Increasedgovernmentandpercapitaexpenditureoneducation

Overthepastdecade,government expenditure on educationhasincreasedataCAGR of19.8%and

Indias percapitaexpenditureoneducationhasincreasedataCAGRof~8%fromRs204.7toRs437
perstudent;whichwillboostthedemandforstationeryproducts.

60.6
61.0
440,574
0.8

KeyFinancialIndicators
Mar08
2,148.8
5.9
35.5
1.7
0.4
5.9

17.4
10.7

Revenue(Rs mn)
EBITDAmargins (%)
PAT(Rs mn)
PATma rgi ns(%)
Gea ring(x)
EPS(Rs /sha re)
PE(x)
P/BV(x)
RoCE(%)
RoE(%)
EV/EBITDA(x)

Mar09
2,845.0
6.7
68.8
2.4
0.8
1.1
7.4
1.0
19.7
14.2
4.6

Mar10
3,319.7
8.0
116.4
3.5
0.7
1.9
20.6
3.9
21.8
20.5
10.5

n.m.:Notmeaningful

Shareholding(AsonSeptember30,2010)
DII
2%

FII
3%
Promoter
39%

KEYRISKS

Thecompanyskeyraw materialsinclude variouspetrochemical products. Anyvolatilityinraw

materialpriceswilladverselyaffectCamlinsmargins.
The company operates in the stationery (nonpaper) industry which is highly fragmented.
Unorganized players account for around 80% of the total market share in certain products like
writinginstruments.Itfacesseverecompetitionfromtheseentities.

Others
56%

Indexedpricechart
(index)
250

StockPerformancesvisvismarket
Returns(%)

10,000

200

YTD

1m

3m

12m

Ca ml inLtd

58

16

26

63

NIFTY

11

14

Note:
1)YTDreturnsaresinceApril1,2010toNov30,2010.
2)1m,3mand12mreturnsareuptoNov30,2010.

('000)
12,000

8,000
150
6,000
100
4,000
50

2,000
0

0
Dec09

Feb10

Apr10

Volumes(RHS)

Jun10

Aug10
CamlinLtd

Oct10
NIFTY

CRISIL COMPANY REPORT | 1

CamlinLtd
BACKGROUND

Camlinwassetupasaprivatelimitedcompanyin1946andlaterconvertedintoapubliclimitedcompanyandlistedontheBombayStockExchangein1987.Thecompanyis
engaged in the manufacturing and trading of art material and stationery products. The promoters have been in this line of business since 1931. Camlin has its plants at
Vasai,TarapurandTalojainMaharashtra;andJammuinJammu&Kashmir.

UptoFY06,Camlinoperatedthroughthreedivisions:consumerproducts,finechemicalsandpharmaceuticals;whichwasrestructuredintotheconsumerproductsandfine
chemicalsdivisions.Inordertoimprovefocusandgrowthin boththedivisions,the management decidedto hiveoffthefinechemicalsdivisionintoaseparatecompany.
CamlinFineChemicalsLtd(CFCL)wasformedinDecember2006andwaslistedontheBombayStockExchangeinMarch2007.

COMPETITIVEPOSITION

PeerComparison

Revenue(Rs mn)
EBITDAma rgins (%)
PAT(Rs mn)
PATMa rgi n(%)
Gea ring(x)
EPS(Rs /sha re)
PE(x)
P/BV(x)
RoCE(%)
RoE(%)
EV/EBITDA(x)

CamlinLtd.
Mar10
3,319.7
8.0
116.4
3.5
0.7
1.9
20.6
3.9
21.8
20.5
10.5

PidiliteIndustriesLtd.
Mar10
22,193.6
18.9
2,746.4
12.4
0.7
6.1
24.6
6.7
28.8
40.0
19.1

n.m:Notmeaningful

FINANCIALPROFILE

Revenuesimprovedduetohighersales

InFY10,Camlinsrevenuesgrewby17%yoytoRs3.3bncomparedtoRs2.8bninFY09.
ThecompanyEBITDAmarginsimprovedto8.0%inFY10ascomparedto6.7%inFY09on
account of higher sales from inhouse production facilities. Subsequently PAT margins
tooimprovedfrom2.4%inFY09to3.5%inFY10.

KeyFinancialIndicators
Revenue

Units

Mar08

Mar09

Mar10

Rs mi ll ion

2,148.8

2,845.0

3,319.7

5.9

6.7

8.0

35.5

68.8

116.4

EBITDAma rgins Percent

PAT

Rs mi ll ion

PATma rgi ns

Percent

1.7

2.4

3.5

Revenuegrowth Percent

13.5

32.4

16.7

EBITDAgrowth

Percent

42.7

49.6

39.9

PATgrowth

Percent

90.1

93.7

69.1

Gea ring

Times

0.4

0.8

0.7

RoCE

Percent

17.4

19.7

21.8

RoE

Percent

10.7

14.2

20.5

INDUSTRYPROFILE

Educationservices

Thereistremendousopportunityforanexponentialgrowthofthe educationsectorgiventhedemographic profile ofIndiaand thelatent demandforqualityeducation.

Thereisincreasedcompetitionforgettingintoqualityeducationalinstitutionsasseveraleducationalinstitutionsdonothaveadequateinfrastructure,trainedteachersand
propercontentdeliverymechanisms.Withanincreaseinaffordability,householdsarealsowillingtopayahigherpriceforqualityeducation.Themultitudeofgovernment
regulations and regulatory bodies, especially in higher education, is a key factor influencing private participation. The `not for profit` diktat is another major factor
influencing higher investments in the education sector. Despite the strict regulatory environment, investors have lucrative opportunities with emergence of innovative
structures/modelsofoperation.

CRISIL COMPANY REPORT | 2

CamlinLtd
ANNUALRESULTS
IncomeStatement
(Rsmillion)
NetSales
OperatingIncome

Mar08
2,145.2
2,148.8

Mar09
2,832.1
2,845.0

Mar10
3,313.6
3,319.7

EBITDA
EBITDAMargin

127.4
5.9

190.5
6.7

266.5
8.0

Depreciation
Interest
OtherIncome

37.7
26.1
1.4

43.5
52.9
1.4

52.4
58.3
0.3

PBT
PAT

63.2
35.5

102.7
68.8

157.8
116.4

PATMargin

1.7

2.4

3.5

No.ofshares(MnNo.)

6.0

60.0

60.3

Earningspershare(EPS)

5.9

1.1

1.9

Mar08
65.0
28.0
37.7
215.5

Mar09
95.5
25.3
43.5
57.0

Mar10
155.5
39.0
52.4
40.3

Cashflowfromoperatingactivities
CapitalExpenditure
Investmentsandothers

140.8
104.9
0.0

56.7
263.4
2.2

128.6
151.8
2.7

Cashflowfrominvestingactivities
Equityraised/(repaid)
Debtraised/(repaid)
Dividend(incl.tax)
Others(inclextraordinaries)

104.9
210.0
50.5
17.5
15.0

261.2
0.0
189.2
21.1
23.9

149.1
4.1
32.6
35.2
16.6

Cashflowfromfinancingactivities
Changeincashposition
Openingcash
Closingcash

258.0
12.3
23.7
36.0

192.0
12.5
36.0
23.6

18.1
2.4
23.6
21.1

Cashflow
(Rsmillion)
Pretaxprofit
Totaltaxpaid
Depreciation
Changeinworkingcapital

Balancesheet
(Rsmillion)
Equitysharecapital
Reservesandsurplus
Tangiblenetworth
Deferredtaxliablity:|asset|
Longtermdebt
Shorttermdebt
Totaldebt
Currentliabilities
Totalprovisions
Totalliabilities
Grossblock
Netfixedassets
Investments
Currentassets
Receivables
Inventories
Cash
Totalassets

Mar08
60.0
393.3
453.3
3.4
53.5
149.6
203.2
344.7
36.2
1,040.8
487.5
262.5
9.9
768.5
264.2
392.9
36.0
1,040.8

Mar09
60.0
457.9
517.9
12.0
87.1
305.2
392.4
455.3
38.7
1,416.3
769.4
482.4
7.7
926.2
347.5
439.4
23.6
1,416.3

Mar10
60.3
557.2
617.4
14.4
58.0
367.0
425.0
688.6
54.3
1,799.7
904.7
581.7
5.1
1,212.8
483.0
586.1
21.1
1,799.7

Revenuegrowth(%)
EBITDAgrowth(%)
PATgrowth(%)

Mar08
13.5
42.7
90.1

Mar09
32.4
49.6
93.7

Mar10
16.7
39.9
69.1

EBITDAmargins(%)
Taxrate(%)
PATmargins(%)

5.9
44.3
1.7

6.7
24.6
2.4

8.0
24.7
3.5

Dividendpayout(%)
ReturnonEquity(%)
Returnoncapitalemployed(%)

42.2
10.7
17.4

26.1
14.2
19.7

25.9
20.5
21.8

Gearing(x)
Interestcoverage(x)
Debt/EBITDA(x)

0.4
4.9
1.6

0.8
3.6
2.1

0.7
4.6
1.6

Assetturnover(x)
Currentratio(x)
Grosscurrentassets(days)

4.7
1.4
130

4.5
1.2
117

4.0
1.1
133

Ratio

n.m : Not meaningful;

QUARTERLYRESULTS
StandaloneProfitandlossaccount
(Rsmillion)
NoofMonths

Sep10

%ofRev

Sep09 %ofRev
3

Jun10

%ofRev

Sep10 %ofRev
6

Sep09

%ofRev

Revenue

787.9

100.0

708.3

100.0

1,208.6

100.0

1,996.5

100.0

1,768.0

100.0

EBITDA

46.5

5.9

43.0

6.1

157.2

13.0

203.7

10.2

182.1

10.3

Interes t

15.4

1.9

12.7

1.8

15.3

1.3

30.6

1.5

26.9

1.5

Depreci ation

16.4

2.1

13.0

1.8

14.7

1.2

31.1

1.6

25.9

1.5

PBT

14.7

1.9

13.0

1.8

127.3

10.5

142.0

7.1

121.0

6.8

PAT

8.9

1.1

10.2

1.4

95.3

7.9

104.2

5.2

90.4

5.1

CRISIL COMPANY REPORT | 3

CamlinLtd
FOCUSCHARTS&TABLES

40
35
30
25
20
15
10
5
0

NetProfit

Sep2010
38.4
3.1
2.4
56.1

OPM

BoardofDirectors
DirectorName
Di li pDi ga mba rDa ndeka r(Mr.)
Ra ji vMa dha vDandeka r(Mr.)
As his hSubhas hDa ndekar(Mr.)
Deepa kMa dha vDandeka r(Mr.)
Shri ra mShara dDa ndeka r(Mr.)
Shis hi rBa bubhai Des a i(Mr.)
Deepa kKesha vGha is a s(Mr.)
Dha na nja yNa rendra Munga l e
(Mr.)
Vi ja yNa ra ya nPara njpe(Mr.)
SriramRa ma na tha n(Mr.)
Shis hi rSures hShirga oka r(Mr.)
Ani lSi nghvi(Mr.)

Sep10

Jun10

Dec09

Mar10

Jun10

Mar10

Dec09

Mar09

Dec08

Sep08

Mar08

Sep10

Jun10

Mar10

Dec09

Sep09

Jun2010
38.7
2.2
0.3
58.9

Jun08

Movementinoperating andnet margins

Percent
14
12
10
8
6
4
2
0
2
4

Jun09

Mar09

Dec08

ShareholdingPattern(Percent)
Dec2009
Mar2010
Promoter
38.7
38.7
FII
14.5
4.5
DII
0.0
0.0
Others
46.8
56.8

1,000

Netprofitgrowthyoy(RHS)

Sep09

20

Sep09

500

Jun09

Sep10

Jun10

Dec09

Mar10

500

20

Salesgrowthyoy(RHS)

Sep08

Jun08

Mar08

1,000

40

EPS

Dec07

Rs/share
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
0.2
0.4

1,500

60

Dec07

Sales

Sep09

Jun09

Mar09

Sep08

Dec08

Jun08

Mar08

Dec07

2,000

Jun09

200

80

Mar09

400

2,500

Sep08

600

100

Dec08

800

3,000

Jun08

1,000

Percent

120

Mar08

1,200

QuarterlyPATandYoYgrowth

Rsmn

Sep10

Percent

1,400

Dec07

Quarterlysales&yoygrowth

Rsmn

NPM

Designation
Executi veCha i rma n&Ma na gi ng
Jt.Ma na gingDi rector,Wholeti me
Di rector
NonExecuti veDirector
Executi veDirector
Whol etimeDirector
NonExecuti veDirector
NonExecuti veDirector
NonExecuti veDirector
NonExecuti veDirector
NonExecuti veDirector
NonExecuti veDirector
NonExecuti veDirector

AdditionalDisclosure
ThisreporthasbeensponsoredbyNSEInvestorProtectionFundTrust(NSEIPFT).

Disclaimer
Thisreportisbasedondatapubliclyavailableorfromsourcesconsideredreliable.CRISILLtd.(CRISIL)doesnotrepresentthatitisaccurateorcompleteandhence,itshouldnotberelieduponas
such.Thedata/reportissubjecttochangewithoutanypriornotice.Opinionsexpressedhereinareourcurrentopinionsasonthedateofthisreport.Nothinginthisreportconstitutesinvestment,
legal,accountingortaxadvice oranysolicitation,whatsoever.Thesubscriber/userassumethe entirerisk ofanyusemadeofthisdata/report.CRISIL especiallystatesthat,ithasnofinancial
liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or
redistributedorcommunicateddirectlyorindirectlyinanyformtoanyotherpersonespeciallyoutsideIndiaorpublishedorcopiedinwholeorinpart,foranypurpose.

CRISILisnotresponsibleforanyerrorsandespeciallystatesthatithasnofinancialliabilitywhatsoevertothesubscribers/users/transmitters/distributorsofthisreport.Forinformationplease
contact'ClientServicing'at+912233423561,orviaemail:clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4