Bearish Trend in Indian Toners and Developers, Outlook Positive | CORPORATE ETHOS

Bearish Trend in Indian Toners and Developers, Outlook Positive

By: | July 5, 2018
Indian Toners and Developers Ltd

With more and more digitalisation taking place worldwide, more printers will be required which in turn require the use of more toners that don’t leave a large carbon foot print. According to Transparency Research, the global toner market is growing at a Compounded Annual Growth Rate (CAGR) of 5.8% and expected to reach US$ 4.3 bn. Based on production technologies there are two types of printers- Conventional toners and chemically prepared toners.


The world market is dominated by Xerox Corporation, Astro-Med Inc, Samsung Fine Chemicals among others. Considering the adverse impact toner powders have on the environment, bio-based printing toners is likely to be favoured over chemical toners.

Here is an analysis of the prospects of the lone listed company in the toners market:-

#Indian Toners and Developers Ltd (BSE: 523586) Category: Micro Cap

Indian Toners and Developers were established in 1990 is the largest manufacturer and exporter of compatibility toners for printers and other digital products. In 2002, the company open a manufacturing plant exclusively for R&D. In 2010, It developed technology for chemically produced toners and in 2012 it developed toners for wide format printers and copiers.

 It started a wholly owned subsidiary in USA in 2016 called Indian Toners USA Company. It has a unit in Rampur exclusively focused on international market and one at Sitargunj, focussed on domestic market giving a competitive edge to the company.

It makes pulverised toners, chemically produced toners and used in laser printers, analogue printers, multi function devices, MICR printer, wide format printers and color laser printers. The R&D lab is well equipped with Tribo tester, flux meter, densito meter, melt flow indexer etc. it has an environmental test chamber to test and develop products as per humidy and temperature conditions. Of the total revenue, 25% is accounted for by exports to 20 countries.

Sushil Jain, an alumni of Delhi College of Engineering is the Chairman and MD of the company and has over 37 years of industry experience.  The toners are compatible with all leading brands such as HP, Samsung, Brothers and copier toner for Toshiba and E Studio.

On an annualised basis, the scrip has under performed the Sensex by 60%. At a Price Earnings Ratio of 15.92, the scrip valuation looks attractive. Net sales had fallen 14.46% to Rs 27.75 cr in Q4FY18. Technical indicators are bearish for the scrip.

Analysts have given a positive rating for the long term and in terms of size, ranks 11th out of 25 companies in dyes and pigments sector.

Target: Nil


India’s production and imports of toners at 7000 mtpa is growing at a rate of 6-7% per annum.  There are only a few organised players in this segment have a good arrangement with leading printer manufacturers. Despite the bearish trend, Indian toners with its equal focus on Indian and global markets will help it strengthen its marketshare and bring better shareholder value.