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HomeNewsBusinessEarningsControl Print PAT jumps 73%; Stock still a buy with strong Q1, reasonable valuations

Control Print PAT jumps 73%; Stock still a buy with strong Q1, reasonable valuations

While revenue has grown at a healthy rate of 28%, the company has reported an impressive expansion in EBIDTA margin from 26.3% to 29.7%

August 01, 2017 / 12:35 IST
     
     
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    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.

    controlprint

    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.

    first published: Jul 31, 2017 07:23 pm

    Disclosure & Disclaimer

    This Research Report / Research Recommendation has been published by Moneycontrol Dot Com India Limited (hereinafter referred to as “MCD”) which is a registered Investment Advisor under the Securities and Exchange Board of India (Investment Advisers) ...Read More

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