REPRO INDIA LIMITED. Cmp 124.
The company is into integrated print solutions business.
They are into printing for various groups of clients
EDUCATIONAL BOOKS—clients include Paragon, Playmore, Igloo, Modern
CATALOGUES & MAGAZINES: clients include New Woman, Cine Blitz, Hi Blitz, Business Barons, Gladrags, OK India
ANNUAL REPORTS—for Tata Steel, HUL, DLF, Infosys, Wipro, Vedanta,Rolta,Patni etc
Other clients for various purposes include Microsoft, IBM, Alligator Books,Orient Longman,Oxford University i Press etc.
The company expanded its capacities to meet an increasing demand by adding on machines, IT systems and high-end workflows.
This is in addition to the setting up of a facility in the SEZ at Surat – which is now operational.
THE COMPANY IS INTO PRINT ON DEMAND SOLUTIONS.(POD)
FACILITIES located at Mumbai, Equipped with state-of the-art web, sheet-fed and Print-on-Demand presses and
SURAT facility has a combination of web presses, sheet-fed presses with complementary CTP and binding lines • Also has a battery of inline hologram, label pasting and shrink-wrapping machines
• Has the capacity to produce 100 million books per annum
• Can despatch upto 50 containers per month
FUNDAMENTALS
Shareholding pattern: Promoters hold around 68% with no pledging.
| YEAR | 05 | 06 | 07 | 08 | 09 | 10 | Q1fy11 |
| SALES | 83 | 111 | 129 | 150 | 238 | 201 | 59 |
| NP | 4.5 | 8.7 | 9.5 | 15.5 | 16.5 | 17.55 | 2.93 |
| Eps | 5.67 | 8 | 9 | 14.8 | 15.7 | 16.7 | |
| Dividend | | 1.5 | 2 | 2 | 2.5 | 3 | |
| RONW | 14 | 11 | 11 | 16 | 15 | | |
| loan | 40 | 30 | 43 | 41 | 106 | 135 | |
EQUITY IS 10.48 CRORES AND AT AROUND CMP OF 124, MARKET CAP CLOSE TO 130 CRORES
POSITIVES;
Long standing relationships with clients. The knowledge of their clients helps them to conceptualize and convey the contents which the clients want from them
Good R&D team and POD concepts would provide them edge.
They provide concept, and print solutions at same place. The content process outsourcing seems to have good potential going forward.
Reasonably attractive valuations, available at a PE of around 8.3
NEGATIVES;
Volatility in raw material prices like paper could dampen prospects
Since exports contribute major chunk of business, currency risk exists.
Ipo of the company was in Nov 05 and it was priced at 165.
TECHNICAL ANALYSIS
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got this while doing some research on print industry n perfect pick up time at 104..:-)..
ReplyDeleteADSL can be a good buy right now... great volumes..looks like long awaiting breakout is possible nytime now.
Hitesh,
ReplyDeleteI question I also tend to follow your style of investing in unfashionable but stocks which are undervalued at the moment.But when to get out of this stocks. My question is applicable in cases like Patels airtemp where the stock price shoots up like anything but still appear holding a reasonable value. When we tend to start to believe that the stock is beginning to reflect its true potential it drops down 20 or 30%.Is the best way to get out of this stocks once you get a 50 or 100% return and then wait for some correction. But then our buying price for the stock (in absolute terms)is going up every time we are buying and selling the stock.So how do you play this.
Regards,
a/-
HI,
ReplyDeleteThere are different approaches by different people to investing. I usually book partial profits in the companies I own after a sharp run up and keep a predetermined quantity for longer term so that the acquisition price for the rest comes down. When to sell usually is on basis of technicals or sometimes observing some froth building up in a stock.
The undervalued, out of favour stocks gives better returns but since they are less researched & not recommended by many, we need to book partial profits once it gives decent returns. Hitesh is expert in doing that.
ReplyDeleteWhat could be trigger for further growth? Any other moats except long standing relationships which can be quite fortress to draw down.What about other cheap competition?
ReplyDeleteThe biggest moat is capacities in place with the operational surat facility. Economies of scale will now help the company face cheap competition. Plus some other aspects like POD would also be triggers going forward.
ReplyDelete