💰 Financial Performance

Revenue Growth by Segment

The company registered a 26% CAGR over the last three fiscals, reaching INR 816 Cr in FY24. However, revenue for the first half of FY25 declined by approximately 6% YoY due to a high base, with 9M FY25 revenue standing at INR 562 Cr compared to INR 604 Cr in the previous year.

Geographic Revenue Split

Pan-India presence with a distribution network of over 300,000 retail outlets. The company is also focusing on strengthening its export segment to boost future revenue, though specific regional percentage splits are not disclosed.

Profitability Margins

Gross and operating margins are sensitive to raw material costs. Operating margin improved by 244 basis points to 9.46% in FY24 from ~7% in FY23. Net Profit After Tax (PAT) margin improved from 3.15% in FY23 to 5.37% in FY24.

EBITDA Margin

EBITDA margin was 9.46% in FY24 but declined significantly to 3.7% during the first nine months of FY25. This sharp drop was primarily caused by an inventory loss of INR 22.73 Cr and increased raw material prices.

Capital Expenditure

Planned capital expenditure of INR 40 Cr for fiscal 2025, primarily funded through internal cash accruals. The company avoids large debt-funded capex to maintain its financial risk profile.

Credit Rating & Borrowing

CRISIL upgraded the long-term rating to 'CRISIL A/Stable' and reaffirmed the short-term rating at 'CRISIL A1'. The company is currently debt-free after prepaying term debt in FY23, with an interest coverage ratio of 18.30 times in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include plastic, paper, and pigments, which account for a major portion of the production cost. Fluctuations in these materials directly impact the 9-10% targeted operating margin.

Import Sources

Not specifically disclosed, but the company is focusing on localization and import substitution to manage input cost variations and mitigate global supply chain volatility.

Capacity Expansion

Manufacturing plants are located in Tarapur and Patalganga (Maharashtra) and Samba (Jammu). While specific MTPA figures are not provided, the company manages over 2,500 stock keeping units (SKUs).

Raw Material Costs

Raw material costs are a significant portion of expenses; for H1 FY25, cost of materials consumed was INR 166.22 Cr against total revenue of INR 401.77 Cr (~41% of revenue).

Manufacturing Efficiency

Efficiency is driven by cost-reduction techniques and technical collaboration with the parent company to widen product offerings and optimize production at the three main plants.

Logistics & Distribution

Distribution is handled through a massive network of 300,000+ retail outlets and 2,500+ SKUs to ensure pan-India availability of Camel and Camlin products.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Growth is targeted through strengthening the export segment, diversifying the portfolio with digital and hybrid stationery to counter digital adoption, and expanding the 300,000+ retail outlet network. The company also leverages technical collaboration with Kokuyo Japan for new product development.

Products & Services

Stationery and art products including pencils, geometry boxes, scholastic colours, notebooks, office supplies, and office furniture.

Brand Portfolio

Camel, Camlin, and Kokuyo.

New Products/Services

Focusing on digital and hybrid stationery offerings and expanding the artistic/creative tool segment for professionals and hobbyists.

Market Expansion

Expansion is focused on the domestic Indian market and increasing the footprint in the export segment over the medium term.

Market Share & Ranking

Leading market position across core product segments in the Indian stationery industry.

Strategic Alliances

Strategic alliance with Kokuyo S&T (Japan), which holds a 74.99% stake as of December 2024, providing technical, operational, and financial backing.

🌍 External Factors

Industry Trends

The industry is seeing a rise in the creative economy and E-commerce/D2C shifts. However, it faces disruption from digital tools, necessitating a shift toward hybrid stationery products.

Competitive Landscape

Intense competition from organized players, fragmented unorganized segments (pens/pencils), and low-cost Chinese imports.

Competitive Moat

Sustainable moat built on 77+ years of brand recall for 'Camel' and 'Camlin', a massive distribution reach of 300,000+ outlets, and 74.99% ownership by Kokuyo Japan providing technical superiority.

Macro Economic Sensitivity

Highly sensitive to inflation in raw material prices (plastic, paper, pigments) and changes in the creative economy spend.

Consumer Behavior

Increasing adoption of digital tools among students and professionals is reducing traditional stationery usage, while hobbyists are increasing spend on creative tools.

Geopolitical Risks

Exposure to competition from cheap, non-branded variants and Chinese stationery imports which pressure pricing and market share.

⚖️ Regulatory & Governance

Industry Regulations

Subject to GST regulations and standard manufacturing norms in Maharashtra and Jammu. Recent regulatory focus includes GST audits and compliance.

Environmental Compliance

The company monitors ESG-related risks through its Risk Management Committee.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; PAT was INR 44 Cr on PBT of ~INR 59 Cr in FY24 (~25% effective rate).

Legal Contingencies

The company received multiple demand orders in November 2025 for Goods and Service Tax (GST) along with interest and penalty from authorities in Delhi, Mumbai (South East), and Kolkata North.

⚠️ Risk Analysis

Key Uncertainties

Inventory losses (INR 22.73 Cr impact in FY25) and raw material price volatility (High severity) are the primary uncertainties affecting profitability.

Geographic Concentration Risk

Manufacturing is concentrated in Maharashtra and Jammu, while sales are distributed pan-India.

Third Party Dependencies

Dependency on a wide network of 2,500+ stockists and distributors for sales fulfillment.

Technology Obsolescence Risk

Medium risk from digital tools replacing traditional paper-based stationery; company is mitigating this through hybrid product development.

Credit & Counterparty Risk

Receivables are managed through an established dealer-distributor network; working capital cycle improvement is a key monitorable for credit rating upgrades.