Control Print - Printing Their Own Way To Glory

Utilizing close to two decades of experience in the Coding & Marking Industry, Control Print has developed a philosophy that consists of partnering with the leading global players technologically. The company utilizes their unsurpassed local manufacturing infrastructure and highly motivated skilled workforce to provide the best engineered and most cost effective products and solutions for the entire range of manufacturing industries which include Automotive, Agro-Chemicals, Metals, FMCG, Pharmaceutical, Food & Beverage, Wire, Cable, & Pipe, Construction Materials, and Commercial Printing.

With company's extensive nationwide coverage of more than 120 well trained sales and service engineers, 9 offices, and 60 back end staff, Control Print provides the highest levels of pre and post sales support for a consistent, reliable, high quality customer experience.

Control Print Limited has two modern manufacturing centers located at Vasai, on the outskirts of Mumbai, and Nalagarh, Himachal Pradesh. Aesthetically designed and fully equipped, these facilities are complete with all the necessary support tools, services and amenities required to ensure the highest quality of products and services consistently. In addition to manufacturing capabilities each center has comprehensive service training facilities for external as well as internal customers.

Solutions Provided:
1) Continuous Inkjet Printer
2) Large Character Printer
3) Hot Roll Coder
4) Thermal Transfer Overprinter
5) Laser
6) Consumables
7) Digital Printing
For details, visit http://www.controlprint.com/solutions.html

Strategic Partners:

1) KBA Metronic:
KBA-Metronic Aktiengesellschaft is a medium-size technology company which specializes in the development, design, production, marketing and service of printing and coding systems. Metronic AG is also a leader in patented innovation.

2) Macsa:
Macsa has an impressive history with more than 90 years of experience, and to know its history, one must go back to 1908 when the company Framun located in Manresa (Barcelona) set up the manufacture of rubber stamps. A few years later, this company started to distribute machinery and consumables for rubber stamp manufacturers all over Spain.

My Views:
Thanks to some of the viewers of this blog, that I came across this company, and was highly impressed at the first look itself. Later on, as I kept studying the details, I found it more and more attractive, with lots of potential seen ahead for the company. Currently, they are operating at a very small level, but are expected to keep growing and achieve greater glory in future.
In the process of studying itself, I found stock appreciating from 140 to almost 200 levels, but I still feel, it has plenty more to achieve.
The company is virtually debt free, plus management has been paying very good dividend over the years.
The company has been growing at a CAGR of 15% in sales and 43% in net profit. Over the years, the company has been able to maintain very good net profit margins and last year, they were able to see it at 15%, which is generally considered very high for company with market cap of meager 176 Cr.
Last year, the company posted an EPS of 15.55 annually, which accounts for P/E ratio of 12.5 at current market price. The Q1 numbers for FY'15 were attractive enough to boost our confidence in the company, and expecting it to grow very well in all parameters this year.
The company is trying to mark its presence is entire sub-continent, with company completing the registration of its branch in Sri Lanka and is currently under the process of obtaining other statutory registration for the branch to be operative, as seen in notice of FY'14 annual result.
The balance shows a good growth as far as company's fixed assets are concerned which is another good sign. I am expecting the company to post annual sales of 110 Cr this year, with net profit of close to 18-20 Cr.
Since May 14, the stock price has almost tripled from 65 to 200 levels or so. Hence one can make entry based on his/her risk profile, and according to what one feels is the correct price to enter.
I feel the company should keep growing at a good pace, and price should follow.

Off-late, I have seen plenty of stocks getting appreciated very quickly and giving returns in excess of 100% within few months. I hope such experiences do not change the entire concept of long term investment in the mind of investors. When I say, long term, it still means, that I am talking about an investment with a time frame in excess of 2 years, with a constant check on the updates from company time to time.