Madhuchanda DeyMoneycontrol Research
We had initiated coverage on “Control Print” a prominent home-grown player in the coding and marking industry in India.
Also Read: Control Print's domestic share, margins visibility are a draw
The company has released its first quarter performance. While revenue has grown at a healthy rate of 28 percent, the company has reported an impressive expansion in EBIDTA (earnings before interest, depreciation and tax) margin from 26.3 percent to 29.7 percent. Consequently, the operating profit has grown by 47 percent.
The decline in depreciation and flat interest expenses resulted in 73 percent increase in after-tax-profit.
We had estimated full year profit to be Rs 30 crore. Since the year has started on an optimistic note, the company looks set to surpass our earnings estimate.
Given the unique moats, the stock looks reasonably valued at 17 times FY19 projected earnings, even after the sharp spike in the share price post results.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.