Buy This Small Cap IT Hardware Stock For 20% Potential Upside: ICICI Securities

ICICI Securities in its recent report on Control Print Ltd, a computer hardware & equipment industry company, has recommended buy the stock of the company. It has given a buy call for a target price of Rs 555 apiece. Control Prints is a small cap IT Hardware sector stock. The company provides services to various industries like Cement, metals, chemicals, glass, wood, rubber, plastic, pharmaceutical, FMCG, and food & beverage.

Stock Outlook & Returns

Today, the stock opened at Rs 471.50 apiece, currently trading at Rs 465.10 apiece. The Current Market Price of the stock is above Rs 172.10 apiece from its 52 week low level and Rs 28.9 apiece below its 52 week high level.

The 52-week low is 293 apiece and 52 week high is 494. apiece, respectively. The PE ratio is 17.65. Its TTM EPS is Rs 26.42. PB ratio is 2.97. Face value is Rs 10. The dividend yield is 1.93%. The market capitalization of the stock is Rs 769.22 crore.

The stock has performed good in both the long as well as short term with positive returns. In the past 1 week, it gained 4.48% and 5.12% in the past 1 month, respectively. In the past 1 year, it gained 18%. In the past 3 years, it has given a multibagger return of 114.46%. In the past 5 years, it gave a positive return of 34.39%.

Considering Target Price and the Current Market Price, the stock has potential gains of nearly 20% in 12 months.

Q1FY23 Results: Company reported robust Q1FY22 results

Revenue for the quarter came in at Rs 65.1 crore, up 19.7% YoY. EBITDA margins came in at 27.3% vs 21.7 Q1FY22 and absolute came in at Rs 17.8 crore up 29.6% YoY. Ensuing PAT came in at Rs 11.7 crore as compared to Rs 7.6 crore in Q1FY22 (as it has an exceptional loss of Rs 3 crore).

Strong installed base of 15500 printers will augur well for growth in the high margin consumable business over the medium to long term. Build in revenue, EBIDTA, PAT CAGR of 14.3%, 19.9%, 18.3% respectively. We maintain our BUY rating and value CPL at Rs 555 i.e. 17x P/E on FY24E EPS.

Key triggers for future price performance

Installed base of 15,000+ printers, continues to grow which augurs well for growth in consumable sales. Continued to penetrate competitor accounts in key sectors like building materials, FMCG, Pharma & Dairy.

About - Control Print Ltd.

Control Print Ltd. was founded in the year 1991. Control Print is the pioneer in the manufacturing of coding and marking solutions in India. With over two decades of industry experience. Control Print Ltd is involved in development, research, manufacturing, and marketing of printing machines, spare parts, consumables (fluids) and associated services.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.