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Is Page Industries a solid growth stock? - The numbers tells it is

05-06-2014 • About Page Industries ($PAGEIND) • By InTwits

Page Industries is an attractive growth stock in Other Apparels & Accessories industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Page Industries showed growth in the last financial year. The company's revenue surged on 37.5% in FY2014. Together with revenue growth Page Industries also managed to keep EBITDA growth. EBITDA grew 44.3% for the same period.

In the last 3 years the company showed fast revenue growth of 34.2% from FY2011 to FY2014 annually. EBITDA surged on 37.7% from FY2011 to FY2014 annually.

Page Industries ($PAGEIND) financials for the last 5 years

mln. INR FY2010 FY2011 FY2012 FY2013 FY2014
Revenue18,4034,9166,8348,63511,877
Revenue growth, %-73.3%39.0%26.3%37.5%
SG&A, %
EBITDA7249761,4411,7682,551
EBITDA growth, %34.9%47.6%22.6%44.3%
EBITDA margin, %3.93%19.9%21.1%20.5%21.5%
Net Income3965859001,1251,538
Net Income margin, % 2.15%11.9%13.2%13.0%12.9%
 
CAPEX247285271450526
CAPEX/Revenue, %1.34%5.80%3.97%5.21%4.43%
Debt5481,1507591,0071,632
Cash1425203134
Net Debt/EBITDA0.7x1.2x0.5x0.6x0.6x
 
ROIC, %39.7%44.2%54.9%58.5%61.6%
ROE, %42.6%52.6%62.1%59.3%61.2%

Profitability and return on investment


Margin expansion supported EBITDA growth. Page Industries's EBITDA margin increased slightly on 1 pp from 20.5% to 21.5% in FY2014. In the longer period Page Industries's EBITDA margin increased on 1.60 pp from 19.9% in FY2011 to 21.5% in FY2014.

Page Industries shows attractive ROIC at 61.6% for the last 12 months which assumes stable development model. During the last three years it surged - it was 44.2% in FY2011. Average ROIC for the last three years was 58.3%.

Net Income margin decreased slightly on 0.100 pp from 13% to 12.9% in FY2014. In the longer period the company showed Net Income margin growth of 1 pp from 11.9% in FY2011 to 12.9% in FY2014.

Page Industries operates at ROE of 61.2%. It's average ROE for the last three years was 60.9%.

Capital expenditures (CAPEX)


Page Industries's CAPEX/Revenue was 4.43% in FY2014. Page Industries showed big decline in CAPEX/Revenue of 1.37 pp from 5.80% in FY2011 to 4.43% in FY2014. For the last three years the average CAPEX/Revenue was 4.54%.

Leverage (Debt)


Having such a fast growth profile Page Industries keeps low debt level at 0.6x Net Debt/EBITDA. In the longer period Page Industries showed big decline in leverage of 0.53x from 1.15x in FY2011 to 0.63x in FY2014.

Valuation vs. comparable companies


At the end of trading day today Page Industries traded at 27.0x EV/EBITDA which is 69.1% higher than 16.0x Other Apparels & Accessories peer group avearge calculated on the basis of 133 companies. The market closed today at 43.8x P/E for Page Industries which is 107% higher than 21.2x Other Apparels & Accessories peer group avearge calculated on the basis of 14 companies.

For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Page Industries traded at 34.1x EV/(EBITDA-CAPEX) which is 107% higher than 16.5x Other Apparels & Accessories peer group avearge calculated on the basis of 11 companies.

Peers in Other Apparels & Accessories


Below you can find Page Industries benchmarking vs. other companies in Other Apparels & Accessories industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Bhartiya International ($BIL)-71.6%28.4%20.9%36.7%
Celebrity Fashions ($CELEBRITY)-11.1%1.0%-8.6%35.2%
Asian Star Co ($ASTAR)-57.3%10.1%34.2%32.0%
Renaissance Jewellery ($RJL)-41.8%10.4%0.0%28.4%
Ashapura Intimates Fashion ($AIFL)-75.1%100.9%28.7%26.8%
 
Median (16 companies)-32.8%13.0%12.6%16.7%
Page Industries ($PAGEIND)-73.3%39.0%26.3%37.5%


Top companies by EBITDA margin, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Zodiac Clothing Co ($ZODIACLOTH)8.4%11.0%9.3%8.8%10.8%
Ashapura Intimates Fashion ($AIFL)1.0%8.9%9.5%10.5%10.7%
Tara Jewels ($TARAJEWELS)3.2%8.5%9.2%9.1%9.2%
Bhartiya International ($BIL)2.5%10.6%11.4%9.2%8.9%
Tribhovandas Bhimji Zaveri ($TBZ)2.0%7.2%9.0%9.0%7.4%
 
Median (13 companies)2.9%8.7%7.8%5.9%5.5%
Page Industries ($PAGEIND)3.9%19.9%21.1%20.5%21.5%


Top companies by CAPEX/Revenue, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Zodiac Clothing Co ($ZODIACLOTH)2.7%9.3%5.7%3.9%4.0%
Tara Jewels ($TARAJEWELS)0.9%1.8%1.6%1.3%3.1%
Bhartiya International ($BIL)1.1%4.5%4.5%3.9%1.8%
Thangamayil Jewellery ($THANGAMAYL)0.3%1.9%3.5%1.2%1.4%
Pearl Global Industries ($PGIL)3.2%1.9%0.9%0.7%1.3%
 
Median (11 companies)0.6%1.8%1.5%1.7%1.1%
Page Industries ($PAGEIND)1.3%5.8%4.0%5.2%4.4%


Top companies by ROIC, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Oscar Global ($OSCARGLO)6.1%12.6%52.3%
Virat Industries ($VIRAT)25.4%13.2%20.7%26.2%30.9%
Ashapura Intimates Fashion ($AIFL)17.2%21.7%24.1%19.1%23.4%
Tara Jewels ($TARAJEWELS)11.6%14.8%17.5%18.6%15.1%
Tribhovandas Bhimji Zaveri ($TBZ)29.3%33.1%22.9%13.4%
 
Median (24 companies)6.6%10.7%9.3%7.2%10.9%
Page Industries ($PAGEIND)39.7%44.2%54.9%58.5%61.6%


Top companies by Net Debt / EBITDA

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Thangamayil Jewellery ($THANGAMAYL)2.0x2.2x2.2x2.6x11.9x
Shrenuj & Co ($SHRENUJ)8.1x8.6x9.3x11.2x11.7x
Pearl Global Industries ($PGIL)20.6x8.4x4.5x4.7x7.0x
Asian Star Co ($ASTAR)7.7x8.2x7.1x7.1x5.9x
Tribhovandas Bhimji Zaveri ($TBZ)4.1x2.4x1.6x2.7x4.1x
 
Median (18 companies)3.8x2.7x2.4x3.2x0.3x
Page Industries ($PAGEIND)0.7x1.2x0.5x0.6x0.6x