Financial Trend Analysis
Control Print . reported its Q2 FY25-26 results with notable financial highlights. The company’s operating cash flow for the year reached ₹63.21 crores, marking a peak in cash generation capability. Additionally, the dividend per share (DPS) for the year stood at ₹10.00, reflecting a consistent shareholder return policy. The profit after tax (PAT) for the first nine months was recorded at ₹91.71 crores, indicating a substantial rise in profitability compared to previous periods.
Return on equity (ROE) is positioned at 22.3%, suggesting that the company is generating a reasonable return on shareholders’ funds. The price-to-book value ratio of 2.6 indicates that the stock is trading at a valuation that aligns fairly with its book value, neither excessively expensive nor undervalued relative to its peers. However, operating profit growth over the past five years has averaged 17.09% annually, which may be considered modest for a company in the IT hardware space.
Despite these positive financial indicators, the stock’s year-to-date return is -1.87%, underperforming the Sensex’s 9.05% gain over the same period. Over the last year, the stock has generated a return of -1.09%, while the Sensex posted a 3.75% increase. This divergence suggests that market participants may be weighing other factors beyond the company’s earnings growth.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Quality and Capital Structure
Control Print . maintains a notably low debt-to-equity ratio, averaging zero, which indicates a debt-free capital structure. This financial conservatism reduces risk associated with leverage and interest obligations, potentially appealing to investors prioritising balance sheet strength. The company’s return on equity further supports the view that it is utilising its equity base effectively to generate profits.
However, the company’s presence among domestic mutual funds is negligible, with holdings reported at 0%. Given that mutual funds often conduct thorough on-the-ground research, this absence could imply a cautious stance from institutional investors, possibly due to valuation concerns or business model uncertainties.
Valuation Perspective
From a valuation standpoint, Control Print . is trading at a price-to-book ratio of 2.6, which is considered fair when compared to historical averages within its sector. The company’s PEG ratio stands at 0.1, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. This low PEG ratio may indicate that the stock is reasonably valued relative to its earnings growth potential.
Despite this, the stock’s recent returns have lagged behind the broader market indices, which may suggest that investors are factoring in other risks or uncertainties. The 52-week price range, spanning from ₹571.90 to ₹918.55, shows that the current price of ₹727.70 is situated closer to the mid-point, indicating neither a significant discount nor premium relative to its recent trading history.
Technical Analysis and Market Trends
Technical indicators for Control Print . present a mixed picture. The weekly and monthly Moving Average Convergence Divergence (MACD) readings are bearish and mildly bearish respectively, signalling some downward momentum in the medium term. The Relative Strength Index (RSI) on both weekly and monthly charts does not currently provide a clear directional signal, suggesting a lack of strong momentum either way.
Bollinger Bands indicate mild bearishness on the weekly chart and bearishness on the monthly chart, which could imply increased volatility and potential downward pressure. The daily moving averages, however, show mild bullishness, hinting at some short-term positive price action. The Know Sure Thing (KST) indicator is bearish on the weekly timeframe but mildly bullish monthly, further underscoring the mixed technical signals.
Other technical measures such as Dow Theory and On-Balance Volume (OBV) do not currently indicate a definitive trend, with both weekly and monthly charts showing no clear directional movement. The overall technical trend has shifted from mildly bullish to sideways, reflecting a period of consolidation and uncertainty in price direction.
Price action for the day shows a slight increase, with the stock closing at ₹727.70, up 0.13% from the previous close of ₹726.75. The day’s trading range was between ₹719.90 and ₹731.40, indicating relatively narrow intraday volatility.
Long-Term Performance Comparison
Examining longer-term returns, Control Print . has outperformed the Sensex over three and five-year periods, with returns of 73.53% and 225.52% respectively, compared to the Sensex’s 37.89% and 84.19% over the same durations. However, over a ten-year horizon, the Sensex’s 236.54% return surpasses the company’s 138.07%, suggesting that while Control Print . has delivered strong medium-term gains, it has lagged the broader market over the very long term.
This performance profile may reflect the company’s growth trajectory and sector-specific dynamics, with the IT hardware industry facing evolving challenges and competitive pressures.
Control Print . or something better? Our SwitchER feature analyzes this micro-cap IT - Hardware stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Market Assessment Shift
The recent revision in Control Print .’s market assessment appears to be driven primarily by a combination of its technical trend shifting to a sideways pattern and the mixed signals from various technical indicators. While the company’s financial performance shows strength in profitability and cash flow generation, the modest pace of operating profit growth and the absence of institutional mutual fund interest may temper enthusiasm.
Valuation metrics suggest the stock is fairly priced relative to its book value and earnings growth, but the stock’s recent underperformance relative to the Sensex indicates that investors may be cautious. The technical indicators, reflecting a lack of clear momentum and some bearish tendencies, contribute to a more measured outlook.
Overall, the changes in analytical perspective reflect a balanced view that recognises Control Print .’s solid financial footing and reasonable valuation, while also acknowledging the uncertainties posed by technical trends and market sentiment. Investors may consider these factors carefully when evaluating the stock’s potential within the IT hardware sector.
Looking Ahead
As Control Print . continues to navigate the evolving IT hardware landscape, monitoring its quarterly financial results, technical chart developments, and institutional interest will be crucial. The company’s ability to sustain profit growth and maintain a strong balance sheet will remain key factors influencing its market perception. Meanwhile, shifts in technical momentum and broader market conditions will likely play a significant role in shaping near-term price action.
Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →
