COMPANY OVERVIEW:
Camlin was established in the year 1931. It was incorporated by Mr. Dandekar. Over the years from just an ink manufacturer it has diversified into pain balm, specialty chemicals, gums, adhesives and many other related products. Company manufactures about 2000 types of products.

Distribution Networks:
Company has strong distribution network of 50000 retailers across the country.

PRODUCT	SALES(In crores)	% of Total
Stationery(In numbers)	Rs 178.85 crore	61.33%
Chemical Products(In liters)	Rs 63.59 crore	21.80%
Chemical products(In numbers)	Rs 33.29 crore	11.41%
Stationery(In liters)	Rs 13.98 crore	4.79%
Others	Rs 1.87 crore	0.64%

KEY RATIONAL FOR INVESTMENTS:
Increase in Government expenditure on education will help the company in increasing the top line and bottom line.
It has turned around in FY08 on back of operational efficiency. This will help company good profit in the coming future.
Brand name ‘Camlin’ is household name in India.
Camlin is fine chemical division is planning to enter the European and US market.
Camlin has decided to incorporate a 100% subsidiary company for carrying out the new activity of setting up of pre-schools.
Company is eyeing turnover of Rs 500 crore by 2012.
Company is having various expansion plans.

	NO. OF SHARES	% OF TOTAL
PROMOTERS	23307180	38.55%
INSTITUTION	12316610	20.70%
GENERAL PUBLIC	24376210	40.75%
GRAND TOTAL	60000000	100.00%

	31/03/06	31/03/07	31/03/08	31/03/09
TOTAL INCOME	204.15	197.07	214.36	283.66
EXPENDITURE	-193.45	-185.7	-199.79	-262.79
PBDITA	10.7	11.37	14.57	20.87
DEPRECIATION	-5.19	-3.85	-3.77	-4.35
PBIT	5.51	7.52	10.8	16.52
INTEREST	-5.73	-3.72	-2.61	-5.29
PBT	-0.22	3.8	8.19	11.23
TAX	0	-9.59	-2.77	-3.38
PAT	-0.22	-5.79	5.42	7.85

Key Highlights:
Total Income grew at CAGR of 11.5%.
PBDITA grew at CAGR of 25%.
Company has shown turnaround in FY08 and is maintaining the profitability growth in FY09. PAT grew by 45% between FY08 and FY09.
RATIOS:

	31/03/06	31/03/07	31/03/08	31/03/09
EPS	-0.03667	-0.965	0.903333	1.308333
PBDITA MARGIN	5.241244	5.769524	6.796977	7.3574
NPM	-0.10776	-2.93804	2.528457	2.767398
INTERSET COVER	0.961606	2.021505	4.137931	5.006061

Key Highlights:
Company is having healthy EPS of Rs 1.3. 45% rise in EPS as compared to FY08.
PBDITA margin is showing consistent increase from 5.2% in FY06 to 7.3% in FY09.
NPM moved in black from red in FY08 to 2.5% and thereafter remained flat.
Interest covers of less than 1 in FY06, Company today have healthy interest cover of 5.

	Q2FY09	% CHANGE	Q2FY10
TOTAL INCOME	62.92	12.55%	70.84
EXPENDITURE	-59.76		-61.17
PBDITA	3.16	206%	9.67
DEPRECIATION	-1.03		-6.67
PBIT	2.13		3
INTEREST	-1.1		-1.27
PBT	1.03		1.73
TAX	-0.34		-0.18
PAT	0.69	125%	1.55

Key Highlights:
Total Income increased by 12.55%.
PBDITA surged by 206%.The exceptional increase is because of lower base.
PAT moved up by 125%.

VALUATION & OUTLOOK:
At CMP of Rs 24 stock is trading at 16X to trailing twelve month earning. Seeing the strong growth in the writing instrument segment we value the company at 24X. The fair value we arrive at is Rs 31.2.

CONCLUSION:
Investors with 6-8 months investment horizon could take position in the stock. The stock is value buy at this level.