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  • Control Print Stock Valuation

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    Siddharth Shah
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    Control Print Limited is recommended as a strong buy based on its market leading position, strong operating margins of around 25%, and expected future growth. The company has an 18% market share in the industrial printing industry which is expected to grow 15% annually. Despite some risks from currency fluctuations and royalty payments, the company is expected to benefit from expanding facilities and growing export revenues. Based on the company's earnings per share and a target P/E ratio of 30x, the stock value is estimated to reach Rs. 732 per share by 2019-20.

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    Control Print Stock Valuation

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    Control Print Limited is recommended as a strong buy based on its market leading position, strong operating margins of around 25%, and expected future growth. The company has an 18% market share in the industrial printing industry which is expected to grow 15% annually. Despite some risks from currency fluctuations and royalty payments, the company is expected to benefit from expanding facilities and growing export revenues. Based on the company's earnings per share and a target P/E ratio of 30x, the stock value is estimated to reach Rs. 732 per share by 2019-20.

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    79 Ansichten1 Seite

    Control Print Stock Valuation

    Hochgeladen von

    Siddharth Shah
    Control Print Limited is recommended as a strong buy based on its market leading position, strong operating margins of around 25%, and expected future growth. The company has an 18% market share in the industrial printing industry which is expected to grow 15% annually. Despite some risks from currency fluctuations and royalty payments, the company is expected to benefit from expanding facilities and growing export revenues. Based on the company's earnings per share and a target P/E ratio of 30x, the stock value is estimated to reach Rs. 732 per share by 2019-20.

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    © All Rights Reserved
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    Stock Valuation Report

    RECOMMENDATION STRONG BUY Date -20th September, 2017

    Control Print Limited


    Industry Printing, Coding and Marking EPS Rs 16.64
    Products Printers, Ink and ribbons. P/E 22.70
    Face Value Rs 10
    Dividend 25%
    CMP Rs 377.65 52 wk High 422.95 Dividend Yield 0.66%
    Market Cap Rs 591.8cr 52 wk Low 225.60

    Company Information
    Control Print Ltd is one of the leading companies in the industrial grade printing, coding and marking solutions.. It
    has about 18% market share and has one of the highest operating margins. With a strong distribution system setup
    in India, Bangladesh and Sri Lanka, the company has steady and increasing sales. It has manufacturing facilities at
    Vasai, Nalagarh and Guwahati.

    Key Positives Potential Negatives


    Low cost, economical and widely used products Overseas technical partnerships mean a lot of
    Company is virtually debt free. reliance on imports. Foreign exchange risk.
    Strong & stable operating margins (about 25%). Outflow of cash as royalty payments.
    Strong distribution system. Conversion of shares into warrants thereby
    diluting earnings.

    Future Outlook
    The Coding & Printing industry is expected to grow at 15% annually for the foreseeable future.
    Newly expanded plant at Guwahati is expected to add a lot of revenues.
    Strong operating margins are expected to help the company deliver strong performance.
    A setup in Dhaka and Sri Lanka is expected to generate a lot of export related revenues for the company
    which will help offset the outflow of royalties and manage foreign exchange risk.
    Company has a better operating margins than its competitors which aids profitability.

    Valuation Methodology (CMP 377.65)


    P/E Ratio 22.70x and EPS Rs 16.64
    Industry P/E Ratio is around 30x which the company is expected to reach in 5 years.

    2017-18E 2018-19E 2019-20E


    Revenues 174 204 241
    Net Profit 30.55 35.9 42.2
    EPS 19.6 23.01 27.04
    Stock Value 473.5 589.5 732.25

    Analyst Information Disclaimer


    Siddharth Shah The analyst has compiled this report from public sources, for informational use. The
    sidd.shah@live.in Analyst holds no position in this security. Any losses arising from an action to buy or
    +91-99204-45094 sell stocks is not a responsibility of the Analyst. Please consult your financial advisor.

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