Control Print (CONTROLPR)

FairStock Score: 29/100 — RISKY

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Nearly debt-free balance sheet with D/E of 0.02
• High displayed ROE of 35.57%
• Sales growth of 15% indicates ongoing demand
• Promoter holding of 52.98% aligns interests with minority shareholders
• Modest dividend yield of 1.52% offers some downside support

Concerns

• Profit declined 36.4% despite sales growth, showing margin compression
• Latest quarter net profit of ₹5 Cr on ₹119 Cr sales implies only ~4.2% margin
• Piotroski F-score of 4/9 and FairStock Score of 48/100 signal weak fundamental momentum
• At 2.79 times book value, there is limited asset-based margin of safety

AI Analysis

Let me look at Control Print the way Graham taught: as part ownership of a business, not a stock certificate. At ₹645.65, the market cap is ₹1,054 Cr and the trailing P/E is 10.88. On the surface, that looks inexpensive. But the twelve-month figures do not tell a clean story. Sales grew 15%, yet profit fell 36.4%. The latest quarter earned just ₹5 Cr on ₹119 Cr of sales, a thin 4.2% margin. If that quarter reflects the new run-rate, the headline P/E is misleading, and I am not getting the value the multiple suggests. The balance sheet is sound: debt/equity is 0.02, ROCE is 18.46%, and book value is ₹231.62. ROE of 35.57% looks excellent, but the Piotroski F-score of 4/9 and FairStock Score of 48/100 both tell me the quality has deteriorated. A high ROE can be a lagging indicator when earnings are falling. Promoter holding of 52.98% and a 1.52% dividend yield show alignment and a modest reward for patience, but I buy for earnings, not yield alone. The 15% sales growth proves demand is alive, yet profits are shrinking, which suggests margin pressure, input costs, or a weaker product mix—classic cyclical behaviour. At 2.79 times book value, the asset cushion is thin. In cyclicals, a low P/E can appear when earnings are near the peak; here earnings are contracting, so I must estimate the trough, not extrapolate the peak. The stock sits 28% below its 52-week high of ₹899, and while that may eventually be an opportunity, it can also be a falling knife. I would wait for evidence that quarterly margins have stabilised and that growth is converting into profit. Until then, this is a business to watch, not one to chase.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer