Flair Writing Industries Ltd stands as one of India's largest writing instrument companies and ranks among the top 3 players in the industry, while holding the distinction of being the largest pen exporter from India, with a robust presence spanning 115 countries. The company's roots trace back to 1976 when it was originally founded, establishing itself as a significant player in the writing instruments sector.
Flair Writing Industries Limited manufactures and sells a comprehensive range of writing instruments in India, including ball pens, fountain pens, gel pens, roller pens, and metal pens. The company's product portfolio extends beyond traditional writing instruments to include stationery products such as mechanical pencils, highlighters, correction pens, markers, gel crayons, and kids' stationery kits, along with refills, watercolors, crayons, sketch pens, erasers, wooden pencils, geometry boxes, fine liners, sharpeners, and scales.
The company operates under multiple renowned brands including Flair, Hauser, Pierre Cardin, Flair Creative, Flair Houseware, and ZOOX. The company owns exclusive rights to the Pierre Cardin trademark in India for class 16 products including pens. Since March 2017, the company has been a manufacturer and exclusive distributor of certain Reynolds branded pens in India.
As of recent market data, Flair Writing Industries Ltd commands a market capitalization of ₹3,162 crores. The company has generated operating revenue of ₹1,031.92 crores on a trailing 12-month basis. The company recorded an annual revenue growth of 4%, with a pre-tax margin of 16% and return on equity (ROE) of 13%.
The company's recent quarterly performance demonstrates strong growth momentum. For Q3 FY2024-25, Flair Writing Industries Ltd reported a 1.5% quarter-on-quarter decrease in consolidated revenues, but witnessed significant growth of 18.4% on a year-on-year basis. The net profit increased by 54.1% year-on-year, with earnings per share (EPS) of ₹2.80 during Q3 FY2024-25.
For Q4 2023-24, the company reported revenue of ₹306.07 crores with net profit of ₹30.84 crores, resulting in a net profit margin of 10.08%. The company has delivered impressive profit growth of 24.1% CAGR over the last 5 years.
• Market Capitalization: ₹3,162 crore
• Operating Revenue (TTM): ₹1,031.92 crore
• Annual Revenue Growth: 4%
• Pre-tax Margin: 16%
• Return on Equity (ROE): 13%
• Q3 FY2024-25 Revenue Growth (YoY): 18.4%
• Q3 FY2024-25 Net Profit Growth (YoY): 54.1%
• Q3 FY2024-25 EPS: ₹2.80
• Q4 FY2023-24 Revenue: ₹306.07 crore
• Q4 FY2023-24 Net Profit: ₹30.84 crore
• Net Profit Margin (Q4 FY2023-24): 10.08%
• 5-Year Profit Growth (CAGR): 24.1%
• Debt-to-Equity Ratio: 3%
• Promoter Holding: 78.6%
The company has significantly reduced its debt burden and is now almost debt-free. Flair Writing Industries maintains a reasonable debt-to-equity ratio of 3%, which signals a healthy balance sheet. This strong financial position provides the company with flexibility for future investments and expansion opportunities.
Flair Writing Industries Ltd manufactures writing instruments and stationery products, including pens, pencils, and houseware items, with an impressive annual production capacity of two billion pieces. The company also provides a range of houseware products, including casseroles, bottles, storage containers, serving solutions, cleaning solutions, and basket and paper bins.
In Q3 FY2024-25, the company demonstrated robust growth with a 17.6% increase in consolidated revenue, driven by strong demand in the Creative segment and strategic partnerships enhancing its premium product offerings. Despite facing challenges such as rising operational expenses and high employee costs, effective cost management led to a remarkable 54% year-on-year increase in profit after tax.
The company maintains an active export business, selling its products internationally. As the largest pen exporter from India, Flair Writing Industries has established a strong global footprint, serving customers across 115 countries through its international distribution network.
The upcoming exam season is expected to further boost sales, particularly in the Pens and Creative segments, while investments in capital expenditures aim to improve operational efficiencies. However, the company remains vigilant about managing working capital and ensuring successful integration of new products to sustain its growth trajectory and enhance margins.
The company is led by Chairman Khubilal Jugraj Rathod and Managing Director Vimalchand Jugraj Rathod. The company maintains a clean promoter structure with no promoter pledging. Promoter holding stands at 78.6%.
While the company has delivered consistent profit growth, it currently does not pay dividends to shareholders despite reporting repeated profits. From a technical analysis perspective, the stock has an EPS Rank of 87 indicating consistency in earnings, and a RS Rating of 73 showing fair recent price performance.
The company's strong market position, debt-free balance sheet, consistent profitability, and expanding global presence make it an interesting proposition for investors seeking exposure to the writing instruments and stationery sector. The company's ability to maintain its leadership position while adapting to changing market dynamics will be crucial for its continued success.
