If You Like EPS Growth Then Check Out Control Print (NSE:CONTROLPR) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Control Print (NSE:CONTROLPR). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.

View our latest analysis for Control Print

Control Print's Earnings Per Share Are Growing.

As one of my mentors once told me, share price follows earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Control Print managed to grow EPS by 8.1% per year, over three years. That's a good rate of growth, if it can be sustained.

I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Control Print maintained stable EBIT margins over the last year, all while growing revenue 27% to ₹2.4b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

Since Control Print is no giant, with a market capitalization of ₹6.7b, so you should definitely check its cash and debt before getting too excited about its prospects.

Are Control Print Insiders Aligned With All Shareholders?

Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

In the last twelve months Control Print insiders spent ₹2.8m on stock; good news for shareholders. While this isn't much, we also note an absence of sales. We also note that it was the Executive Chairman & MD, Basant Kumar Kabra, who made the biggest single acquisition, paying ₹2.1m for shares at about ₹347 each.

The good news, alongside the insider buying, for Control Print bulls is that insiders (collectively) have a meaningful investment in the stock. To be specific, they have ₹2.2b worth of shares. That's a lot of money, and no small incentive to work hard. Those holdings account for over 32% of the company; visible skin in the game.

Should You Add Control Print To Your Watchlist?

One important encouraging feature of Control Print is that it is growing profits. On top of that, we've seen insiders buying shares even though they already own plenty. That makes the company a prime candidate for my watchlist - and arguably a research priority. Even so, be aware that Control Print is showing 1 warning sign in our investment analysis , you should know about...

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Control Print, you'll probably love this free list of growing companies that insiders are buying.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.