Pentonic, Uniball, Deli are some of the household stationery brands manufactured by Linc, a company that has almost doubled its revenue in the last three years.
But Linc had its bad days before the good ones. The recent strength comes after years of little to no growth between FY12 and FY21 due to the company’s poor brand recall.
The launch of its Pentonic brand in FY19 is the secret recipe for Linc’s resurrection. The brand’s competitive pricing despite improved design led to its wider acceptance.
Since Pentonic took off, Linc used it as a sales funnel for other products by introducing them under the same name. And actually, it worked.
The revamped brand helped Linc scale up distribution and led to a higher average selling price, lifting its operating profit margins.
The stock is attractively valued as well. Linc trades at a P/E of 27 times, close to its 10-year median of 25 times.
Linc has set ambitious targets. It is eyeing a revenue of Rs 750 crore, about 50% higher than its latest TTM earnings, and an EBITDA margin of 15% by FY25.
The stationery sector is up for a slow innings. Is the Pentonic bet enough to face industry headwinds? Grab the latest Wealth Insight to find out. Subscribe on the link below