This Consumer Stations Products stock jumped 7% on Monday within the first hour of markets open. The stock rallied with nearly 4x weekly and 3x monthly average volumes.
The stock has been on an uptrend since November 2022, but has experienced short term downturns, and is currently close to a strong support line. It trades 2.3% above its 20 day moving average and 16.2% above its 200 day moving average. It closed at 653.65 on Tuesday.
LINC Ltd (“LINC”) is also a multibagger, returning 140% in a 1 year period and 278% over a 3 year period. This means if you invested Rs. 1 lakh in LIC around a year ago, the position would now be worth approx. Rs. 2.4 lakh!
LINC, in its BSE filing reported outcomes for resolutions under consideration in its AGM. The board approved a dividend of Rs. 5 per share, highest in its history and a 180% increase from previous year.
LINC was reportedly looking for a manufacturing footprint in Africa, as it has a huge market for writing instruments. Hence it acquired a 60% stake in Gelx Industries Ltd, Kenya, which is located in Kenya. The total cost of acquisition is US$100 which will be backed up with an interest loan up to a maximum of USD 500,000.
The company expects this to serve the Kenyan market and further it is centrally located and can be a supply hub to other countries in Africa. LINC plans to manufacture the globally accepted – Pentonic brand of writing instrument in this Kenyan factory.
LINC has also formed a subsidiary company Morris LINC Pvt Ltd, which will be a Joint Venture between LINC & Morris. Morris is a leading global writing instrument and stationery player based out of South Korea having a portfolio of a few patented products. Morris was looking to start its manufacturing base in India and found LINC to be an ideal partner for this venture. LINC will be the majority shareholder with an extra golden share. The plan is at its initial stage and the specifics are being worked out.
LINC also reported impressive results in FY2023, Revenue of Rs.487 crore and Net profit of Rs.37 crore.. Revenue grew by 37% YoY whereas Net profit was 4.6 times PY. Export revenue was also strong and contributed over 20% to the topline. On the back of Pentonic, the Company increased the selling price of products resulting in EBITDA margin almost doubling from 6.9% in FY2022 to 13.3% in FY2023. During Q1 FY2024 EBIT grew by 14% from Rs 98 crore to Rs 112 crore YoY. Net profit stood at Rs. 7 crore, up from Rs. 4 crore YoY.
LINC is the Kolkata headquartered company, manufactures and markets writing instruments and stationery products. The company is the exclusive Indian marketer for the premium pen range of Mitsubishi Pencils Company, Japan.
Written by Sandeep R
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
