Flair Writing Industries shares fall after first quarterly results post-listing

Flair’s rapid revenue growth along with the geometric expansion in demand is a testament to its successful market penetration

Shares of Flair Writing Industries fell over 1 percent on December 21, a day after the company reported earnings for the fiscal second quarter ended September 30, 2023. The company's revenue rose 4.2 percent on-quarter to Rs 257 crore in Q2 FY 24, while its profit increased 3 percent sequentially to Rs 33 crore. This is Flair's first quarterly results after it made its stock market debut earlier this month.

At 10:41 am, Flair Writing shares were trading 1.6 percent lower at Rs 354.55 on the National Stock Exchange (NSE). The stock has fallen 20 percent so far since listing on December 1. In comparison, benchmark Nifty 50 has gained 5 percent during this period.

Flair Writing stock had made a bumper debut, listing at Rs 501 on NSE, a 66 percent premium over the IPO price of Rs 304.

Flair's basic earnings per share (EPS) from continuing operations came it at Rs 3.57 for Q2 FY24. EPS is calculated as a company's profit divided by the outstanding shares of its common stock. Typically, the higher a company's EPS, the more profitable it's likely to be. However, a higher EPS isn't a guarantee of future performance.

Incorporated in 1976, Flair Writing Industries is engaged in developing and manufacturing writing instruments that are tailored to the continuously shifting market. It has established business relationships with some of the leading pioneers in the writing industry.

In FY23, Flair Writing reported a 114.3 percent jump in net profit at Rs 118.1 crore, while its revenue grew 63.2 percent to Rs 942.66 crore. According to analysts, Flair’s rapid revenue growth along with the geometric expansion in demand is a testament to its successful market penetration and responsiveness to increased demand, particularly in the school sector.

Narendra Solanki, head of fundamental research at Anand Rathi Shares and Stock Brokers, believes with an ongoing focus on expansion plans, strategic partnerships with global brands and healthy further growth prospects, investors should hold Flair shares for a long time.

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