September 05, 2023

Merino Industries - 2021-2022- Annual Report

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 Some shares of Merino Industries  are available   for Sale / Purchase ,with Dealers of Rare Indian Shares


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February 15, 2022

Merino Inds- Analysis by Sandip Ginodia

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Abhishek Securities
Stock Deep Dive #23


We had first invested in Merino Industries Limited in 2019 at around Rs 1200/sh, since then this is how the price graph has moved: 
Apr 2020 - Rs. 1500/sh
Nov 2020 - Rs 1900/sh
April 2021 - Rs 2500/sh
Feb 2022 - Rs 3500/sh  
This translate to a CAGR of roughly - 52.5%
Merino is a versatile manufacturer and marketer of Interiors Solutions with a wide array of products for homes, offices, commercial and public areas. Decades of strong market presence have created a high brand recall among various customer segments. Tapping the synergy of their products and services, they have achieved a competitive advantage through technology innovation and by delivering greater customer satisfaction.

Shares of Merino Industries Limited are available with us in the range of 3499-3525/share. You can see further details at : or reach out to us at 9830271248.
With a 20%+ market share of the laminative space and at a rough P/E of 30X we expect Merino to outperform competition going forward as well!

Lets dive in to the business model, competition, industry overview and financials –
Company Overview
  • Merino launched in the year 1997 with interior Solutions - and plywood as their first product 
  • They established manufacturing unit for high pressure decorative laminates at Hapur near New Delhi and a second unit at Rohad 
  • Their specialty is to continuously release new products which are aligned to international trends and market demand. Over the years, their innovations have been continuously well received by Architects and Interior Designers.
  • Merino also has interests in:
    • Agro sector (cold storage business, farming, biotechnology and food processing)
    • Information Technology Services (Business Consulting and IT Services) 
 Business Update
The Merino Group's facilities are state-of-the-art, geared for integration, and strategically well-located to serve the markets. Its two manufacturing facilities for High Pressure Laminates have a combined annual production capacity of 35 million sq. mtrs.
There three short cycle lamination facilities can produce pre-laminated particle and MDF boards in sizes varying from 2.5 X 6 ft up to 9 X 6 ft. Following the principle of Economy, our three pre-lamination lines are located in northern and southern locations for readier dispatches to the customer.
In keeping with there integrated approach, they have set up a printing facility to offer custom designs. A plate polishing and cleaning facility has also been installed for uniform surface finish of stainless steel moulds. They are the only HPL manufacturer in Asia to have chroming and de-chroming facility that maintains chromed SS moulds in order to produce non-directional chromed gloss plates. They manufacture our own formaldehyde and resins too.



Competitive Positioning
  • Merino Group, by virtue of its brand, has been able to set up a strong pan-India marketing network of 1,080 dealers and more than 10,000retail outlets.
  • The company also boasts largest laminates capacity in India of 21.5mn sheets/year. This has helped it achieve leadership in the domestic laminates industry.
  • Is among the fastest growing in laminates in India clocking a 10% CAGR over FY16–21 (despite a 12% fall in domestic revenues for FY21). This has helped the company gain market share from 11% in FY16 to 17%.
  • They enjoy highest EBITDA margin, i.e. 25% in FY21.
Third Largest Laminates Exporter from India
Merino is also a strong player in the exports market with a presence in 65 countries, including the US, Hong Kong, Mexico, Singapore, Israel and Norway. India’s share in exports is rising led by high cost competitiveness.
Furthermore, many players globally have preferred India as their outsourcing partners. However, the company has underperformed the laminates industry with its exports remaining largely stable, whereas the industry logged a 12% CAGR over FY16–21. This has led to a sharp fall in Merino’s market share in the exports market from 41% in FY16 to 20% in FY21.
Outlook: Leader to benefit from strong industry tailwinds
Merino is poised for strong growth given its leadership in the domestic market and revival in domestic demand, government’s infrastructure push, shift from unorganised to organised players (due to a sharp increase in raw material prices) and continued traction in exports. The company also has room to re-gain market share in exports market given India continues to attract high growth led by its cost competitiveness. According to industry sources, Merino is also looking to expand in the particle board industry that will provide further growth visibility given it can increase sales of valueadded products such as furniture and pre-laminated boards. Furthermore, balance sheet continues to be strong with debt/equity of 0.1x, strong cash flow and healthy returms
Sources : Company Website, Annual Reports, Edelweiess Research Report 
  • Merino Industries Limited Extra Ordinary General Meeting of the Members:
                  The Meeting will be held on Thursday the 17th day of February, 2022 at 11-00 a.m. through Video Conference (VC) / Other Audio Visual Means (OAVM) regarding Approval for amendment of the object clause of the Memorandum of Association of the Company Read More
  •  Merino Industries Limited rated amount enhanced:
​                   The Merino group registered revenue of Rs 1,302 crore in fiscal 2021 and Rs 963 crore up to October 2021 The operating margin, too, has returned to pre-pandemic levels. MIL is undertaking capital expenditure (capex) of around Rs 646 crore for setting up particle board and furniture manufacturing in Halol, Gujarat. The project is expected to be completed by fiscal 2022-2023. Completion and commencement of the new factory along with sustenance of the financial risk profile and liquidity will remain key Read More
  • Merino Industries limited 56th Annual Report financial year 2020- 2021 dividend ₹6 record date 3rd september : 
                  Merino Industries limited financial year 2020- 21 annual report , the annual report contents director report , CSR report 2020-21 , Environmental Initiative performance report 2020-21 and notice for 56th Annual General meeting  Read More 
Invest online in Merino Here.
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Further, if you want to discuss regarding any of the 75+ Unlisted/Pre-IPO/Startup/Rare Equity Shares we deal in, feel free to get in touch regarding the same.

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