Control Print - Deserves attention?

Yeah Results are good as per me too. QoQ is something folks do look at thus mentioned the reason for some flattishness sequentially. Otherwise I also see on annual basis.

Another good quarter for the company, with 26% sales growth and 21% EPS growth. Growth was largely driven largely by rampup in consumable sales. The recent enforcement of barcodes on top 300 drugs is a material positive for their track & trace division. Concall notes below


  • Printer base increased to 17500+ (sold 650 printers in Q1 vs 750 in Q1FY23). Lower sales was due to some technology problems
  • Revenue breakup: printers (17%), consumables (63%), spare parts (7%), service (13%)
  • Markprint quarterly revenues was 2.35 cr.
  • A large part of coding and printing market is driven by regulations. For e.g. company will benefit due to enforcement of new regulation of barcode for top 300 medicines
  • Buyback should be seen as a special dividend given in a more tax efficient manner

Disclosure: Invested (sold shares in last-30 days)

Didn’t buyback, I have turned into a slow seller, I try to sell in tranches over a few months.


Hi Harsh,

Thanks for summarising the con call. I wasn’t able to attend so waiting for the transcripts and audio recording.

What are your views on the promoters deciding to participate in the buyback?

I didn’t expect them to participate. I would have thought that

  1. They would use the buyback to increase their shareholding percentage.

  2. Considering their promising future outlook and immediate FY25 standalone sales targets, the share price definitely has scope to go higher than the buyback price.

How would you evaluate the management on this event now? Were there any questions asked in the concall on this topic?

Disclosure: Invested and contemplating whether to participate in the buyback due to the management’s decision to participate


Buyback should be seen as a more tax efficient way to distribute cash, basically a replacement to special dividend. If they had instead declared a special dividend, it would have also gone to promoters. Then I dont see how a promoter participating in a buyback impacts future prospects of a company.


Thank you for sharing your perspective. I have the following thoughts

  1. Promoters participating in the buy back means that they are selling their shares not in the open market, but at a predetermined price, although their stake in the company wouldn’t be reduced.

  2. The buy back price is currently at around a 13% premium to the current price, definitely there is scope for the price to go higher than now or in the future, so there isn’t much benefit that they would get on selling their shares.

  3. Them participating might mean that the entitlement ratio for other shareholders tendering shares would now be lesser.

  4. I’m not very clear on this final point, so apologies for my misinformation. Won’t the buy back attract capital gains tax for the selling shareholders?

While yes, there is no issues with the promoters participating in the buy back and it’s a very small % of shares that they would be tendering, in an ideal world, I was hoping that they would have seen this as a way to increase their shareholding in the company, and believe that they could gain more by the share price moving higher in the long run.

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Buyback tax is paid by co (~23% including CESS) and is tax free in hands of shareholders. Dividends are taxed at normal tax rate for investors. Most large investors (including promoters) end up paying 40%+ on dividends, thats why a lot of companies now opt for buybacks as it has become a more tax efficient way of returning cash.

Investors’ contribution in building the business has been an absolute zero. Promoters are entitled to bearing the fruit of their own work, and please keep in mind promoters are the largest shareholders. Indian laws are anyway very favorable for minority shareholders, we should try to keep our expecations at an appropriate level.


Company continued reporting good growth, with sales growing by 21% and EPS by 26%. I continue to be surprised how they are sustaining these growth rates, when the industry is growing at 10-12%. Concall notes below


  • Printer base increased to 18,000+ (sold 705 printers in Q2 vs 675 in Q2FY23)
  • Since last year, have focused more on larger corporates who give higher business per printer. These entities contribute ~70% of current revenues. Due to this shift in focus, number of printers sold in FY24 might be lower
  • Market share has increased to 19% (vs 18.5%)
  • Revenue breakup : printers (15%), consumables (62%), spare parts (7%), service (14%)
  • Consumable capacity utilization is 60-65%, but its pretty easy to debottleneck these. Don’t want to go beyond 75% utilization
  • Industrials: 65%, packaging: 35% (peers are 35% industrials and 65% packaging)
  • Pharma track and trace: have got some of the top 300 brands, but they don’t have first mover advantage here. One production line can generate revenues of 25-45 lakhs
  • Hoping to see similar growth in H2FY24 if current business trajectory continues
  • Won’t be looking at much capex, might go for inorganic expansion
  • 1750-1800 cr. was industry sales in FY23 (big 4 was 1350-1400 cr.)
  • Price increase has been successfully passed on the customers
  • Tax: Guwahati lower tax benefit will go away in May 2025, FY26 will go to normal corporate tax

Disclosure: Invested (sold shares in last-30 days)


At what level you bought? Currently, seems overvalued by a lot.

Marcellus might be looking to invest. Positive for the company!