Small cap stock engaged in the manufacturing of Writing instruments, stationeries, and many more jumped 6 percent in the day’s trade upon forming joint venture with Mitsubishi Pencil Company, Japan.
Price Action
With a market capitalization of Rs. 1,125 Crores, the shares of Linc Limited were trading at Rs. 756.30 per equity share, up 4 percent from its previous day’s close price of Rs. 725.55.
What Happened
Linc Limited one of India’s leading manufacturers and exporters of writing instruments and allied stationery products, has announced the strategic joint venture with Mitsubishi Pencil Company, Japan, a global leader in the writing instruments industry with an annual turnover exceeding $500 million.
The JV aims to introduce advanced Japanese technology to the Indian market, driving the production of high-quality yet affordable writing instruments, tailored specifically for Indian consumers. In new JV Mitsubishi will have 51 percent holding and Linc Limited will have 49 percent holding.
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By utilizing Mitsubishi’s state-of-the-art technology, the JV will produce writing instruments of superior quality, smoothness, and style. These products will be manufactured locally, ensuring affordability for the Indian market and it will also explore sourcing certain raw materials locally to further reduce costs while maintaining world-class standards.
Managament Comments
Mr. Deepak Jalan, Managing Director of Linc Limited, stated – “We are excited to strengthen our long-term partnership with Mitsubishi Pencil Company, with whom we have shared over 30 years of exclusive collaboration.
This joint venture allows us to offer advanced Japanese technology at more affordable price points, creating a unique synergy between innovation and market expertise. We are confident that this partnership will set a new benchmark in the Indian writing instruments industry and open up new avenues in global markets as well.”
About the Company
Linc Limited is primarily engaged in the manufacturing of Writing instruments and stationeries, it is also the exclusive importer and distributor of Asia’s biggest stationery giant, Deli and world famous pen brand Uni-ball, Mitsubishi Pencil Co.Japan in India.
Its product portfolio includes gel pens, ball pens, fountain pens, markers, mechanical pencils, files and folders, and disinfectants. It has an aggregate manufacturing capacity of approximately 60 Crore units per annum.
It has global presence in more than 40 countries where its product is sold under the Linc brand. The Company has a distribution network in over Southeast Asia, Middle East, United of America, United Kingdom, Europe, South America, Africa, Russia and CIS countries.
Financials & Ratios
Its revenue from operations grew by 14.18 percent from Rs. 111.88 Crores in Q1FY24 to Rs. 127.25 Crores in Q1FY25, accompanied by profits of Rs. 7.39 Crores to Rs. 8.37 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.8 percent and a return on capital employed (ROCE) of 23.7 percent. In terms of liquidity ratios, it has reported a debt-to-equity ratio of 0.09.
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Written by: Bharath K.S
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