Indian Toners & Developers - Rs.34.00

Incorporated in 1990, Indian Toners and Developers Ltd (ITDL) is a leading manufacturer of compatible black toners for photocopiers, laser printers, digital machines and multi-function machines like scanners, printers and fax copiers. Being the first company of its kind, it is the pioneer in this highly technical field and established itself firmly as the leader in the domestic market through its brand ‘Supremo’. In fact, it is also the single largest exporter of toner and developer from India. It manufactures toners for a wide range of models of practically all machine manufacturers – Canon, Hewlett-Packard, Kodak, Lexmark, Minolta, Mita, Olivetti, Panasonic, Ricoh, Samsung, Sharp, Toshiba, Xerox and several others.

With its manufacturing facility located at Rampur about 200 kms. East of Delhi, ITDL can boast of having a highly automated and integrated Swiss and German plant and machinery along with know-how assistance from Japan. To cater to the increasing demand, the company has recently augmented its production capacity to 1200 MT from 700 MT in August 2005. It has adopted strict quality control to ensure that its toners are made to machine manufacturers’ standards for copy quality and yield. Hence raw materials are sourced from world-renowned manufacturers in Japan, Germany and USA. ITDL has already applied and is expected to get the ISO 9001:2000 certification shortly. Backed by a pilot plant and strong R&D team, the company is well equipped to develop a wide range of toners to meet the emerging needs of the upcoming new generation digital machines and laser printers. Importantly, it has the most widespread network of 500 dealers present in every nook and corner of the country apart from sales team of 150 people and work force of more than 250 employees. Having established its customers in more than 20 countries, ITDL is currently focusing more on lucrative export markets. It has set up a wholly owned subsidiary in USA by the name of ITDL (U.S.A.), Inc. with a view to enter into the North & South American markets. It already has a representative office in Singapore as well as sole distributors in U.A.E and Singapore. It plans to open offices in Europe and China shortly in order to further expand its global presence. Besides, the company has been participating in exhibitions all over the world to build new customers and to introduce new products in the international market and has been awarded ‘Excellence in Export Performance’ for 3 consecutive years by the Government of India.

Lately, the company has introduced premier quality consumables for laser printer cartridges – OPC Drums, Doctor Blades and Wiper Blades, which will further boost its topline. With its vast experience in the industry along with an efficient and sound technical team, ITDL is poised for further expand its capacity to meet the growing needs of the market. Tough competition in the domestic market, especially from the import of toners by the traders, is a cause of concern. Another negative factor is that, in spite of being a profit making company, it’s a non-dividend paying company. Anyway for FY07, it is estimated that the company will clock a turnover of Rs.45 cr. and NP of Rs.5 cr., which will lead to an EPS of Rs.6 on its current equity of Rs.8 cr. With a reasonable discounting of 12x times, its share price can double in 15~18 months.