Blue Bird (India) Ltd. IPO - Indiainfoline

Issue price – Rs90-105
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Blue Bird (India) Ltd. (BBIL) is a leading manufacturer of paper-based notebook and stationery products with the highest market share of 48% amongst large, organized players in India.

BBIL also manufactures other stationary products like files, perforated pads, registers, filler papers and provides commercial printing services. From FY05, BBIL has commenced exports to Ghana, Kenya and South Africa and plans to initiate exports to the developed countries including in Europe and North America.

BBIL registered a strong 21% yoy growth in net sales at Rs4bn and 57% yoy rise in net profit at Rs251mn during FY06. During H1 FY07, the company recorded revenues of Rs2.4bn and a net profit of Rs151mn.

Almost 97% of the company’s total revenues are generated from the
western India (including Maharashtra). The company is also present in southern India and is in the process of further expanding its presence to Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.

BBIL plans to set up new manufacturing facilities for making
student/exercise books in southern India and increase the capacity of its Pune plant. It also plans to repay its long-term debt of Rs192mn.

In the printing and stationery industry, Navneet Publications and
Sundaram Multi Pap Ltd are the closest competitors of BBIL. However, we cannot strictly compare BBIL with Navneet, which is more of a content and publication company than just a notebook and stationery products manufacturer. We recommend investors to wait for some correction post listing and then take position in the company.