REPRO INDIA LIMITED. Cmp 110.

 

The company is into integrated print solutions business.

They are into printing for various groups of clients

 

EDUCATIONAL BOOKS—clients include Paragon, Playmore, Igloo, Modern

 

CATALOGUES & MAGAZINES:  clients include New Woman, Cine Blitz, Hi Blitz, Business Barons, Gladrags, OK India

 

ANNUAL REPORTS—for Tata Steel, HUL, DLF, Infosys, Wipro, Vedanta,Rolta,Patni etc

 

Other clients for various purposes include Microsoft, IBM, Alligator Books,Orient Longman,Oxford University i Press etc.

 

The company expanded  its capacities to meet an increasing demand by adding on machines, IT systems and high-end workflows.

 

This is in addition to the setting up of a facility in the SEZ at Surat - whichIs now operational.

 

THE COMPANY IS INTO PRINT ON DEMAND SOLUTIONS.(POD)

 

FACILITIES located at Mumbai, Equipped with state-of the-art web, sheet-fed and Print-on-Demand presses and

 

SURAT    facility has a combination of web presses, sheet-fed presses with complementary CTP and binding lines • Also has a battery of inline hologram, label pasting and shrink-wrapping machines

 

• Has the capacity to produce 100 million books per annum

 

• Can despatch upto 50 containers per month

 

FUNDAMENTALS

 

Shareholding pattern:  Promoters hold around 68% with no pledging.

 

 

YEAR	05	06	07	08	09	H1 FY10
SALES	83	111	129	150	238	103
NP	4.5	8.7	9.5	15.5	16.5	5.14
Eps	5.67	8	9	14.8	15.7	4.9
Dividend		1.5	2	2	2.5
RONW	14	11	11	16	15
loan	40	30	43	41	106

 

 

EQUITY IS 10.48 CRORES AND AT AROUND CMP OF 110, MARKET CAP CLOSE TO 115 CRORES

 

Last year, exports accounted for 64% of its business and exports jumped

108% y on y.

 

The first half is weak because of the lag effect of slowdown and management expects growth to pick up in next quarter onwards and  fy 10 eps expected to be in excess of around 16-17.  Next quarter should indicate the validity of this claims.

 

POSITIVES;

 

Long standing relationships with clients.  The knowledge of their clients helps them to conceptualize and convey the contents which the clients want from them

 

Good R&D team and POD concepts would provide them edge.

 

They provide concept, and print solutions at same place. The content process outsourcing seems to have good potential going forward.

 

Reasonably attractive valuations of around 7 if eps of around 17 materialises.(needs to be seen)

 

NEGATIVES;

 

Volatility in raw material prices like paper could dampen prospects

 

Since exports contribute major chunk of business, currency risk exists.

 

Ipo of the company was in Nov 05 and it was priced at 165.

 

TECHNICALS:

 

The stock had made an all time high of 308 in 2005 and since then entered a downtrend and posted a low of 42 in March 09 and currently is forming some sort of inverse head and shoulders pattern (with two right shoulders) with a downward sloping neckline and once it closes above 120, could gather momentum.

Navneet is better choice in this category.

Who are in competition with Repro? Also debt looks very high.

Edited by manish_okhade - 08/Jan/2010 at 11:45am

Originally posted by manish_okhade Who are in competition with Repro? Also debt looks very high.

I dont know about the listed competitors. Unlisted players may be many as shivkumar mentions.

Debt is due to expansion at Surat which was put up in a record time of around 6 months and facilities became operational from April 09.

Company has outstanding order book of 130 crores executable over next 6 months. And hence next two quarters could be much better and could make up for the dismal first half.

Regarding competition, the company claims to be the runaway leader in annual report. They also seem to be making a lot of headway into exports, having registered a growth of around 100% revenues from exports during last year. In this business, long term relationship and reliability plays an important role in securing repeat business. Say if a company has got its annual report published from company A, it is not going to go looking for someone else during next year, unless there are a lot of problems.

Raw material prices are mostly pass on kind of nature and should not be too much of a hurdle. And Print on demand which the company pushes would mitigate whatever risk of raw materials there is because these contracts would be typically executable over a shorter time span.