Buy Flair Writing Industries; target of Rs 382: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Revenue growth driven by normalization of operations and capacity expansion in the steel bottle segment, with the fourth line expected to be operational by 4QFY27E.
  • Margin recovery expected through calibrated measures like rationalization of schemes/discounts and selective price hikes.
  • EBITDA margin expected to improve to 17.7%/18.2% in FY28E/FY29E respectively.
  • Attractive valuation of 14x/12x over FY28E/FY29E EPS estimates.

Thesis Validation Checklist

  • Watch for revenue growth driven by capacity expansion and normalization of operations.
  • Monitor margin recovery through cost discipline and price hikes.
  • Track EBITDA margin expansion to 17.7%/18.2% in FY28E/FY29E.
  • Observe the company's ability to maintain its market share in the pens segment.
  • Keep an eye on the successful commissioning of the fourth line of steel bottles by 4QFY27E.