ICICI Direct recommended hold rating on Control Print with a target price of Rs 255 in its research report dated February 11, 2019.
ICICI Direct's research report on Control Print
Control Print (CPL) reported a muted performance in Q3FY19 Net sales for the quarter came in at Rs 44.0 crore, up 4.4% YoY EBITDA in Q3FY19 was at Rs 10.5 crore with corresponding EBITDA margins at 23.9%, down 510 bps YoY. Margins were disappointing on account of relatively lower share of high-margin consumables business in the product-mix for the quarter PAT in Q3FY19 was at Rs 5.2 crore, down 17.4% YoY. PAT for the quarter was impacted by losses (Rs 1.9 crore) on investment book.
Overall, return ratios are also expected at ~22% in FY20E. On the balance sheet front, the company continues to remain debt free and operationally efficient despite elevated working capital requirements. Overall, we maintain our HOLD recommendation and value it at Rs 255 i.e. 13x P/E on FY20E EPS of Rs 19.7.
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