Control Print - Deserves attention?

Reasonable results, with 14% sales growth 16% EPS growth. They are facing a few supply chain problems resulting in subdued sales for new printers. However, consumable sales are growing very well. Concall notes below.


  • Revenues were impacted due to supply chain problems where certain raw materials were purchased at higher prices to maintain sales. This has resulted in lower gross margins which will also be been in Q3 and continue till February or March
  • Control’s competitors had supply change issues earlier when Control had enough inventory and as a result they were able to gain more business. Now, competitors seem to have rectified their supply chain problems, and Control is facing supply chain issues resulting in nonfulfillment to a few customers
  • Consumable sales increased 29% YOY (vs 10% growth in revenues)
  • To counter inflation, planning a price increase. They give 3-4 quarter notice to customers about price increase. Price increase should start contributing from Q4 and will fully reflect by August 2023
  • Dairy segment grew by 20%+. Expect good growth from pipe and sugar sectors in Q3
  • Launched a new TIJ printer called Pench
  • Guwahati consumable capacity utilization is 40-50%, no need to spend capex to increase capacity
  • Laser printer exports: Supplied to a large co-packers in consumer sector in Indonesia. This was the first orders which has established their base, and they feel going forward, it opens other regions for export of laser printer
  • Sri Lanka resumption: Oligopoly market (4-player). Don’t want to leave that market, plan is to service existing customers. Converted pricing to USD based. Will not infuse fresh capital, will just service existing customers for the time being
  • Mask contribution is ~3%

Disclosure: Invested (position size here, no transaction in last-30 days)