2 CONTROLPR share price target reports by brokerages below. See what is analyst's view on CONTROLPR share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The company launched three new printers in this fiscal. We expect these to gain traction in FY21. This could also result in higher sales from consumables in years to come. Given the company is debt free with a good investment portfolio in books, any upside in revenue growth for consumables would drive FCF further and thereby cash on books. The company has been available at an EV of around Rs 424 crore, which has been generating FCF of ~Rs 25 crore (~6% of EV) every year with RoE & RoCE of ~14% & ~18%, respectively. Since the printer plant has been operating at ~80% utilisation level, any further capex is expected to be funded through internal accruals. We expect the same to translate into better growth visibility for consumables (operating at ~45% utilisation level) and thereby return ratios. We value the company at 12x P/E on FY22E EPS of | 26.9 and arrive at a target price of Rs 325. We have a BUY rating on the stock.
Control Print registered growth of around 33% in printer sales during Q2FY20. Further, the company launched three new printers during the quarter, which we expect to gain traction in FY21. This could also result into higher sales from consumables in years to come. Given the company is debt free with good investment portfolio in books, any upside in revenue growth for consumables would drive FCF further and thereby cash on books. The company has been available at an EV of around | 390 crore, which has been generating FCF of ~Rs 25 crore (~6% of EV) every year with RoE & RoCE of ~14% & ~18%, respectively. Since the printer plant has been operating at ~80% utilisation level, any further capex is expected to be funded through internal accruals. We expect the same would translate into better growth visibility for consumables (operating at ~45% utilisation level) and thereby return ratios. We value the company at 12x P/E on FY21E EPS of | 25.5 and arrive at a target price of Rs 305. We have a BUY rating on the stock.
Healthy performance; profitable growth remains key Driven by an improvement in overall growth outlook of CPL and traction in new product sales, we expect CPL to clock double digit growth in its topline over the next two years. On the margins front, the key trigger remains an improved product mix aka share of consumables. Overall, we expect return ratios i.e. RoCEs to improve to 24.2% in FY21E. On the balance sheet front, CPL continues to remain debt free and operationally efficient despite elevated working capital requirements. Thus, we revise our stance to BUY rating and value CPL at | 285 i.e. 12x P/E on FY21E EPS of | 23.9.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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