MERINO INDUSTRIES LTD | LATEST SHARE PRICE & UPDATE

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₹ 2,800

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₹ 3,125

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Company Overview

Started in 1967 with potato cold storage, Merino Industries Ltd (MIL) has emerged as India’s leading manufacturer and exporter of decorative laminates, Prelam boards, furniture, potato flakes and agricultural produce. The laminates and panel products are used in home furniture, wall linings, doors and other indoor furniture. 

The company has 3 business segments: Laminates and panels, agro and food products and IT services. The laminates and panels are marketed under Merino brand and its ready-to-eat food products are marketed under Vegit brand. 

During FY 2021, MIL merged Merino Panel Products Ltd, Merino Exports Pvt Ltd and Merino Services Ltd with Merino Industries Ltd. Now, Merino Industries Ltd has no subsidiary. 

The company has a production capacity of 2 crores laminate sheets per annum. The company has five manufacturing plants located at Hapur (UP), Jhajjar (Haryana), Krishnagiri (Tamil Nadu) and Bharuch (Gujarat). 

As on 31-March-2021, the total outstanding shares of the Merino Industries Ltd were 1,11,78,679 shares of face value of Rs 10 each and various members of promoter’s family held 45.42%  of the total equity. As on 13-June-2022, with Rs 3,000 share price, the total market cap of the company was around Rs 3,354 crores and P/E of 25x (3000/117.95). 

Merino Industries Ltd distributed the following dividends in the recent past:

FY 2021: Rs 6 per share 

FY 2020: Rs 7 per share

FY 2019: Rs 3.50 per share

FY 2018: Rs 3.50 per share

FY 2017: Rs 3.50 per share

 

Business Model

Merino Industries Ltd has 3 divisions: Laminates and Furniture, Agro-products and IT services. Over 90% of the Group revenues come from selling laminates and panel products, 5% comes from selling potato flakes and the remaining 5% from IT services. The group earns 70% of its total revenues from India while the remaining 30% comes from export to 73 countries. 

 

Registered Office

The registered office of the company is located at 5, Alexandra Court, 60/1, Chowringhee Road, Kolkata, West Bengal. 

Symbol:Merino Industries Ltd.
Face Value (₹):10
ISIN:INE662B01017
Demat Status:NSDL & CDSL
Lot Size:10 Shares

Board of Directors:

NameDesignation Profile
Prakash LohiaManaging DirectorNA Final 1
Prabal Kumar SarkarDirectorNA Final 1
Anurag LohiaWholetime Directorlinkedin
Sisir Kumar ChakrabartiDirectorNA Final 1
Madhusudan LohiaWholetime Directorlinkedin
Nripen Kumar DugarWholetime Directorlinkedin
Bikash LohiaWholetime Directorlinkedin
Deepak LohiaWholetime Directorlinkedin
Bama Prasad MukhopadhyayDirectorNA Final 1
Prasan LohiaWholetime Directorlinkedin
Rup Chand LohiaWholetime DirectorNA Final 1
Gautam BhattacharjeeDirectorNA Final 1
Manoj LohiaWholetime Directorlinkedin
Ruchira LohiaVice Presidentlinkedin

Key Highlights

  • Merino possesses India’s largest laminates manufacturing capacity at 171 lacs sheet per annum
  • Merino range of laminates comprises of more than 10,000 designs , textures , color and finishes.
  • It has its presence in 70+ countries with extensive product range and market across 2000 pan-India outlets through 4000+ dealers
  • CAGR Growth (2015 to 2019)– Operational Revenue 13% , EBITDA 16% & PAT 18%
  • It has maintained receivables at 49 days and focus on cash and carry model thereby enhancing liquidity.
  • GST rationalization on plywood from 28% to 18% shall boost the market share of private plywood players such as Merino.

Financial Highlights

Particulars2020-212019-202018-192017-18
Total Income (₹ Crores) 1338.861488.921491.761239.09
PAT (₹ Crores) 131.86127.94140.83120.53
Diluted EPS 117.95108.58121.94102.98
Book Value per Share (₹) 926.88893.42773.94624.16
Equity (₹ Crores) 1036.13926.44802.54647.23

Financial Charts

Historical Chart

Shareholding Pattern

Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
MERINO INDUSTRIES LTD3487.759.85%17.58%12.73%0.4626.453.37926.88
GREENLAM INDUSTRIES LTD3685.006.14%17.06%12.86%0.396.133.93237.79
CENTURY PLYBOARDS LTD12422.008.97%21.56%15.10%0.0936.925.5956.90

Media Updates

“Bonus Share Issue Propose in June 2021.”

The Board of Directors, at its meeting held on 14th June, 2021 has recommended for issuance of
bonus shares in the proportion of 1:2 [i.e.1 (One) new fully paid up equity share for every 2 (Two)
existing equity shares held].

Frequently Asked Questions

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the Merino Industries unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.  

The Merino Industries shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Merino Industries Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in  

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Merino Industries Ltd unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Merino Industries Ltd unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

 

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