Do you have the source for this info? This sounds like a significant competitive advantage especially when there exists ~10% customer migration in the industry.
this info was based on scuttlebutt
This info is true. They have installed RFID Chips in printers. Source One of the reliable paid newsletters
It will take another two quarters to finish installation. they are doing with their own expenses for future repeat business. so that raw material price increased. total cost is around 2.5 to 3Cr.
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@Vivek_6954, @dd1474 or others who have been tracking this: Did any of you get a chance to hear from the Management regarding the increased expenses in Q3FY17 that has bought down the OPM and PAT? Thanks.
Hi
This is something like Internet of Things. It would interesting to understand what level of sophistication the co has taken in terms of hardware and software. If there is a breach, this money would be down the drain. Can they do a revised/upgrade installation without going through these costs and time again?
Disc. Tracking position
@madhug @Vivek_6954
I have sold my holding in Control Print during last quarter.
Nothing fundamentally wrong, except found other opportunities more attractive.
Regards
Dhiraj
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As per latest company updates, the Guwahati plant has commenced production of Coding and Marking printers53f0012b-e6f2-4a03-ba7e-ea5384b8e951.PDF (65.9 KB)
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Infrared chip in printers http://www.moneycontrol.com/news/business/stocks-business/expect-to-see-good-volume-gains-and-stronger-hold-in-market-post-gst-control-print-2298085.html
If un organized business forced to come under organized business due to GST, Control print could have higher volume growth. On other side printing extra detailing pertaining to GST may increase ink revenue. Story get interesting. PAT margin of approx. 18% is anyhow rare, where any increase in revenue can translate in bigger impact in earnings.
Follow boarders and industry experts views are welcomed, particular, how GST can positively effect control print.
Disc: Invested from 270 levels
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Would love to know what those opportunities are.
Btw the feedback from couple of companies in fmcg / food businesses who use control print has been positive. A friend in the investing community mentioned that when a client did try and migrate to another vendor due to pricing advantage, their production was disrupted due to a glitch with the new guy and they reverted back to control print. High inventory levels have been my primary concern though have been invested for last cpl of years.
Disc: invested
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Thanks, I had a view that Control had a price advantage as per my conversation with one user of product and he did complaint about after sales service. So divergent views for us.
I like the way company had grown over a decade, being the only entity manufacturing printers in Indian market and gaining market share incrementally.
Also, with increasing base of printers, the Company would gain from increased consumable sales. Which was the key reason for increase in FY16 revenues. Margins are good! and gradually should increase with increasing base of printers.
Key concern being the smallest player in the industry. Don’t think so GST and movement to organised is a big kicker, gains from GST is one easy line being pasted everywhere.
Regarding GST, today I saw medical bills with MRP WITH GST above and over mrp, traders are feeling let down, traders cannot sell above mrp so addition of gst is going to eat their margins, I may have got wrong info from trader but certainly need to check out
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this might be for the inventory the guy is holding! if their is tax differential, i think companies will revise their MRPs…
As a end user of the product control print and hitachi provides, there are many local guys in every city who are supplying the ink,makeup and wash solutions required by machines of control print and hitachi. They sell the input material (ink,makeup etc) at nearly half price but the quality is no where near the beforesaid material. I also has to move back to the original quality after trying local material.
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Hi Anand,
understand from your post, you are a consumer of control print. Can you help us here, with what advantages (price?/ language offering for controls?/ quality) they offer compared the peers.
Disruption will happen in ink revenues if, companies provide inks and consumables only at 10 to 15% higher then local suppliers. I do not have any idea that at that low price control print or similar companies can supplies. But story is same for personal printers where local market supplies at half prices but original vendor of printer charging a lot. If Printer companies take that bold step they will win big in revenues and can gradually increase price every year. This way they will hook most of the users to original ink. I think few Japanese company, like brothers doing it where ink prices are reasonable and I see my friends using original ink.
From what i have observed there are three major players in India in batchcode printing machines Control print, Hitachi and domino printer. Their main revenue comes from supplies and annual maintenance contracts from what i have practically observed, with the advent of thermal & laser batch coding consumer will have to rely on them only for all supplies and maintenance. Quality wise i will rate First hitachi then control print and then domino.
Disc: Hitachi user.
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While the long term story looks good, seems a bit expensive based on free cash flows company is generating. Their working capital and need to retain/expand market share would require continual investment. They are already working on raising further equity which will dilute existing shareholders.
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