Moneycontrol
Last Updated : Feb 05, 2018 08:38 AM IST | Source: Moneycontrol.com

Control Print: Strength continues in Q3, healthy return ratios also an attraction

In the quarter gone by, the company reported a steady show with 24% growth in topline along with an improvement in margin that aided 41% surge in EBIDTA (earnings before interest depreciation & tax).

Madhuchanda Dey
 
 
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Control Print — the home-grown player in coding and marking industry continues to impress with a steady quarterly performance. Since we initiated coverage, the company has delivered superlative financial performance.

Quarter at a glance

In the quarter gone by, the company reported a steady show with 24 percent growth in topline along with an improvement in margin that aided 41 percent surge in EBIDTA (earnings before interest depreciation & tax).

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The decline in depreciation, led to 320% surge in after-tax-profit.

For Control Print, we like the oligopolistic nature of the business (dominated by four players), the legal requirement to provide various printed information to the customers, the secular growth outlook tied to GDP and the stickiness of the clients for the company.

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Going by the performance of the first nine months, we have reasonable confidence in our estimated numbers for the company. In the past six months, the company has performed in line with the markets.

Given the healthy return ratios, the ensuing correction can provide a good opportunity to buy into a quality business for the long term.
First Published on Feb 5, 2018 08:38 am
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