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India Equity Research Reports, IPO and Stock News
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About the Company
Repro India is a provider of content, print and fulfillment solutions to publishers, corporate, educational institutes and governments
across the world. Repro is one of the largest producers of books in India. The services of the company include digitalization,
conversion & management of content, printing & binding of books, warehousing and delivery.
19080% of the revenue comes from contractual educational business. Repro has strategic partnership with global logistic providers.
The operations of the company are supported by its facilities located in Mumbai and Surat. Repro has marketing presence in Asia,
Africa, Europe and North America
Investment Rationale
Repro has recently acquired the printing operation of Macmillan Publishers India Limited (MPIL). As per the agreement between the
two companies, MPIL will outsource the printing of their education books to Repro, translating into a business over ` 2.50bn over the
next 5 years for the company. The acquisition will strengthen the company’s base in the South Indian market and this acquisition will
also help Repro to get a global footprint.
Repro is also looking to increase its spread and in the domestic market, it is looking to increase the number of clients. To enhance its
operation, Repro is planning to add more products and services in its portfolio. It is planning to launch online platform in next 3-6
months. The company may raise fund for this new business. Repro is having enough funds for its on-going expansions.
To support its business expansions, the company is looking for acquisitions in certain capabilities like content development, elearning
etc. The company is looking for 30% growth of its exports in the time ahead.
Valuation
At ` 156.00 the stock is trading at 4.34x to the earnings of FY12E and 3.50x to the earnings of FY13E. On the basis of P/BV, it is
trading at 0.94x and 0.74 respectively for FY12E and FY13E. Topline and bottomline of the company are expected to grow a
compounded rate of 29% and 39% respectively over FY10 to FY13E. We are expecting over 20% upside from the current level in
this stock and set the target price of ` 190.00 for long term.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
About the Company
Repro India is a provider of content, print and fulfillment solutions to publishers, corporate, educational institutes and governments
across the world. Repro is one of the largest producers of books in India. The services of the company include digitalization,
conversion & management of content, printing & binding of books, warehousing and delivery.
19080% of the revenue comes from contractual educational business. Repro has strategic partnership with global logistic providers.
The operations of the company are supported by its facilities located in Mumbai and Surat. Repro has marketing presence in Asia,
Africa, Europe and North America
Investment Rationale
Repro has recently acquired the printing operation of Macmillan Publishers India Limited (MPIL). As per the agreement between the
two companies, MPIL will outsource the printing of their education books to Repro, translating into a business over ` 2.50bn over the
next 5 years for the company. The acquisition will strengthen the company’s base in the South Indian market and this acquisition will
also help Repro to get a global footprint.
Repro is also looking to increase its spread and in the domestic market, it is looking to increase the number of clients. To enhance its
operation, Repro is planning to add more products and services in its portfolio. It is planning to launch online platform in next 3-6
months. The company may raise fund for this new business. Repro is having enough funds for its on-going expansions.
To support its business expansions, the company is looking for acquisitions in certain capabilities like content development, elearning
etc. The company is looking for 30% growth of its exports in the time ahead.
Valuation
At ` 156.00 the stock is trading at 4.34x to the earnings of FY12E and 3.50x to the earnings of FY13E. On the basis of P/BV, it is
trading at 0.94x and 0.74 respectively for FY12E and FY13E. Topline and bottomline of the company are expected to grow a
compounded rate of 29% and 39% respectively over FY10 to FY13E. We are expecting over 20% upside from the current level in
this stock and set the target price of ` 190.00 for long term.
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