Merino Industries Ltd - Unlisted Shares
Fundamentals
- Current Price
- ₹3,050
- Market Cap
- ₹3,409.50 Cr
- ISIN
- INE662B01017
- Face Value
- ₹10
- EPS
- ₹-6.55
- P/B Ratio
- 0
- Book Value
- ₹1,213.90
- Debt / Equity Ratio
- 0.518
Key Financials
Profit & Loss
| Metric | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue from Operations | 2,301.39 | 2,251.83 | 2,175.50 | 1,743.59 | 1,296.88 | 1,473.722 |
| Growth % | 2.20% | 3.51% | 24.77% | 34.44% | -12.00% | - |
| Operating Expenses | 2,195.89 | 2,045.39 | 1,935.79 | 1,540.96 | 1,087.08 | 1,253.27 |
| Growth % | 7.36% | 5.66% | 25.62% | 41.75% | -13.26% | - |
| Operating Profit | 105.50 | 206.43 | 239.71 | 202.63 | 209.80 | 220.45 |
| Op. Profit Margin % | 4.58% | 9.17% | 11.02% | 11.62% | 16.18% | 14.96% |
| Other Income | 53.59 | 57.29 | 29.91 | 48.54 | 41.98 | 18.50 |
| Finance Costs | 57.87 | 26.38 | 28.54 | 13.20 | 18.17 | 21.00 |
| Depreciation | 128.07 | 73.87 | 66.98 | 63.58 | 56.69 | 58.78 |
| Profit Before Tax | -26.86 | 163.48 | 174.10 | 174.40 | 176.92 | 159.16 |
| Tax | -19.53 | 41.94 | 56.46 | 43.03 | 45.06 | 29.73 |
| Tax % | -0.85% | 1.86% | 2.60% | 2.47% | 3.47% | 2.02% |
| Profit After Tax | -7.32 | 121.54 | 117.65 | 131.37 | 131.86 | 129.43 |
| Growth % | -106.03% | 3.31% | -10.45% | -0.37% | 1.87% | - |
| PAT % | -0.32% | 5.40% | 5.41% | 7.53% | 10.17% | 8.78% |
| Diluted EPS | -6.55 | 108.72 | 105.24 | 117.52 | 117.95 | 115.78 |
Company Financials
| Metric | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Equity Capital | 11.28 | 11.28 | 11.28 | 11.28 | 11.28 | 7.08 |
| Reserves | 1,345.70 | 1,349.05 | 1,237.13 | 1,133.81 | 1,024.85 | 895.37 |
| Total Equity | 1,356.98 | 1,360.32 | 1,248.41 | 1,145.09 | 1,036.13 | 902.46 |
| Borrowings | 152.10 | 213.94 | 283.90 | 65.76 | 38.71 | 66.01 |
| Provision | 6.17 | 5.63 | 0.38 | 0.00 | 0.00 | 0.00 |
| Other Non-Current Liabilities | 38.00 | 46.57 | 32.95 | 39.95 | 34.80 | 34.60 |
| Total Non current Liabilities | 196.27 | 266.14 | 317.23 | 105.71 | 73.51 | 100.61 |
| Borrowings | 550.40 | 508.35 | 310.72 | 229.34 | 98.46 | 148.33 |
| Other Current Liabilities | 423.22 | 464.08 | 433.67 | 365.01 | 303.24 | 317.54 |
| Total current Liabilities | 973.61 | 972.43 | 744.39 | 594.35 | 401.70 | 465.88 |
| Equity + Liabilities | 2,526.86 | 2,598.89 | 2,310.04 | 1,845.16 | 1,511.34 | 1,468.94 |
| Fixed Assets (incl. WIP) | 1,361.58 | 1,169.17 | 1,134.04 | 224.93 | 431.11 | 433.59 |
| Other Non Current Assets | 137.75 | 331.11 | 148.03 | 718.47 | 433.18 | 239.66 |
| Total Non current Assets | 1,499.32 | 1,500.29 | 1,282.07 | 943.41 | 864.29 | 673.25 |
| Trade Receivables | 201.78 | 214.70 | 175.20 | 165.28 | 151.61 | 177.46 |
| Cash & Cash Equivalents | 3.61 | 7.63 | 3.53 | 90.26 | 23.10 | 10.36 |
| Other Current Assets | 822.15 | 876.27 | 849.23 | 646.20 | 472.33 | 607.88 |
| Total current Assets | 1,027.54 | 1,098.61 | 1,027.96 | 901.75 | 647.05 | 795.69 |
| Total Assets | 2,526.86 | 2,598.89 | 2,310.04 | 1,845.16 | 1,511.34 | 1,468.94 |
Shareholding Pattern
- Merino Exports Pvt Ltd
- 29.58%
- Champalal Lohiia
- 11.42%
- Prakash Lohia
- 10.63%
- Madhusudan Lohia
- 8.90%
- Rup Chand Lohia
- 7.92%
- Ruchira Lohia
- 6.55%
- Other
- 25.00%
Strengths & Weaknesses
Strengths
- Strong market position in the domestic laminates industry: MIL is a leading player in the domestic laminates industry, holding a strong market share of around 20% and a well-established distribution network of 3,000 dealers. Its diverse product portfolio includes renowned brands like 'Merino' (decorative laminates), 'My Space' (furniture), and 'Vegit' (potato flakes). Revenue is projected to grow to ₹2,300 crore in FY24, with 75% driven by laminates. The upcoming particle board unit, expected by Q3 FY25, is a key growth driver.
- Healthy financial risk profile: MIL's net worth stood strong at ₹1,413 crore as of March 31, 2024, supported by steady reserves. Gearing and TOL/TNW ratios were healthy at 0.51x and 0.82x, respectively. Between FY22 and FY24, MIL invested ₹850 crore in expanding particle board capacity, funded partly by ₹325 crore in external debt. Despite additional ₹100 crore term debt in FY25 for capex, the capital structure is expected to remain solid. Debt protection metrics were robust in FY24, with interest coverage at 12x and net cash accrual to debt at 0.31x
Weaknesses
- Exposure to intense competition and changes in demand in the real estate sector: The decorative laminates and panel boards industry faces competition from both unorganised players and established brands like Greenlam Industries and Century Plyboards, alongside growing foreign entrants. Domestic organised players are expanding capacity to meet rising demand. While replacement demand offers stability during lean periods, growth is primarily driven by new users and the construction sector.
- Susceptibility of profitability to volatility in raw material prices: Raw materials, including kraft paper, design paper, and chemicals like phenol and melamine, account for 55-60% of MIL's cost of sales. Around 60-70% of these are imported from regions like the USA, Europe, and China. Price volatility and freight costs have impacted profitability, with an operating margin of 12% in FY24. Price revisions and efficient cost pass-through, coupled with capex stabilisation, are crucial for margin improvement.
- Large working capital requirement: Intense competition necessitates offering of substantial credit to distributors. The company also needs to hold large inventory, because of a variety of designs and need to minimise delays in delivery to customers. Gross current assets ranged from 150 to 164 days over the three fiscals ended March 31, 2024. Efficient working capital management amid increasing scale will remain a key monitorable over the medium term.
About Merino Industries Ltd
Merino Industries Limited (MIL) is primarily engaged in manufacturing and supplying decorative laminates in India and abroad. The company has its manufacturing facilities located in Hapur (Uttar Pradesh) and Hosur (Tamil Nadu) and it is also engaged in manufacturing potato flakes, pre-laminated boards, and furniture units along with providing allied interior solutions and trading of laminates, chemicals, other panel products, and potatoes
Board of Directors
- Rup Chand lohia - Executive Chairman
- Prakash Lohia - MD
- Ruchira Lohia - Wholetime Director
- Prasan Lohia - Wholetime Director
- Bikas Lohia - Wholetime Director
- Madhusudan Lohia - Wholetime Director
- Nripen Kumar Dugar - Wholetime Director
- Gautam Bhattacharjee - Independant Director
- Sisir Kumar Chakrabarti - Independant Director
- Bama Prasad Mukhopadhyay - Independant Director
Frequently Asked Questions
- Is there any lock in period for Merino Industries Ltd unlisted shares?
- The lock-in period for Merino Industries Ltd Unlisted Shares differs based on the investor category, as per SEBI regulations:
● Venture Capital Funds and Foreign Venture Capital Investors (FVCIs):
A lock-in period of 6 months from the date of acquisition of the shares.
● Alternative Investment Funds – Category II (AIF-II): No lock-in period is applicable.
● Other investors (including retail investors, high net-worth individuals (HNIs), and body corporates):
A lock-in period of 6 months from the date of IPO listing of Merino Industries Ltd.
These norms were introduced by SEBI in August 2021, reducing the earlier lock-in requirement from one year to six months. The change was aimed at improving liquidity and encouraging investor participation in companies preparing for public listings. Since then, interest in pre-IPO investments has increased, with investors exploring opportunities to participate in companies ahead of their potential listing. - How much long term capital gains tax do I have to pay on Merino Industries Ltd unlisted shares?
- Long-Term Capital Gains (LTCG) on Unlisted Shares in India arise when such shares are sold after being held for a period of more than two years. The key aspects of LTCG taxation on Merino Industries Ltd unlisted shares are outlined below:
1. Tax Rate
Earlier, LTCG on unlisted shares was taxed at 20% with indexation benefits. However, as per Union Budget 2024, the tax structure has been revised. For transfers made on or after 23rd July 2024, LTCG on unlisted shares is taxed at a flat rate of 12.5%.
2. Indexation Benefit
Previously, investors could avail indexation benefits to adjust the purchase price for inflation, thereby reducing taxable gains.
This indexation benefit has been removed under Budget 2024 for unlisted shares transferred on or after 23rd July 2024.
3. Importance for Investors
Understanding LTCG taxation is important for both retail investors and High Net-Worth Individuals (HNIs), as it directly impacts investment returns, exit planning, and overall tax strategy.
4. Calculation Method
For eligible transactions after 23rd July 2024, LTCG will be calculated at a flat tax rate of 12.5% on the capital gains, without indexation.
5. Applicability
LTCG tax is applicable when unlisted shares are held for more than 24 months before being sold.
6. Relevance
These tax provisions are particularly relevant for investors in the unlisted share market who are considering exiting their investments after a long-term holding period. - How do I start investing in Merino Industries Ltd unlisted shares through InCred Money?
- Buying Merino Industries Ltd Unlisted Shares on InCred Money is quick, seamless, and fully digital.
Step 1: Create Your Account
Sign up using your mobile number and email ID.
Complete your KYC by submitting your PAN, Aadhaar, bank account, and demat account details. Once submitted, your KYC is reviewed and approved.
Step 2: Select & Buy Shares
Browse and select Merino Industries Ltd from our Unlisted Shares list and place your order.
Step 3: Share Transfer
Based on the settlement period for the shares noted on the platform, the purchased shares are transferred and reflected in both your InCred Money portfolio and your demat account. - What documents are needed to invest in Merino Industries Ltd unlisted shares?
- To invest in Merino Industries Ltd Unlisted Shares on InCred Money, you need to complete your KYC verification by submitting the following documents:
● PAN Card
● Aadhaar Card
● Bank account details
● Demat account details
Once your KYC is successfully completed and approved, you can start investing in unlisted shares on the platform.
