Flair Writing Industries (FLAIR IN) – Company Initiation – Writing a diversification chapter – BUY
Published on 06 Mar 2026
We initiate coverage on FLAIR IN with ‘BUY’ rating and TP of Rs413 (23x FY28E EPS; 54% discount to DOMS IN). FLAIR IN has a competitive edge over peers stemming from 1) superior brand recall; 2) cost competitiveness arising from captive manufacturing capabilities of pens, steel bottles & creatives; 3) diversification advantage beyond the core stationery segment into lifestyle categories like steel bottles & houseware; and 4) unparalleled distribution reach with 330,000+ retail touch points. FLAIR IN is one of the largest pen brands in India with an indicative domestic market share of ~16% as of FY25. Backed by the ongoing expansion plan at Valsad for writing instruments and stationery entailing a capex of Rs800-900mn, we expect revenue/EBITDA/PAT CAGR of 13%/15%/16% over FY26E-28E. Given reasonable valuations (stock trades at 20.6x/17.6x our FY27E/FY28E EPS), negligible debt on the BS (D/E ratio of 0.03x in FY25) and expected improvement in the cash conversion cycle we initiate on FLAIR IN with ‘BUY’ and TP of Rs413.
