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Pc Jeweller demonstrated fast growth over the last few years. Will the growth continue?

06-06-2016 • About Pc Jeweller ($PCJEWELLER) • By InTwits

Pc Jeweller is a 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

Pc Jeweller showed fast growth in the last financial year. Pc Jeweller's revenue surged on 15.2% in FY2016. EBITDA also increased: 0.382% for the same period.

In the last 3 years the company showed fast revenue growth of 22.2% from FY2013 to FY2016 annually. EBITDA surged on 14.2% from FY2013 to FY2016 annually.

Pc Jeweller ($PCJEWELLER) financials for the last 5 years

mln. INR FY2012 FY2013 FY2014 FY2015 FY2016
Revenue growth, %32.1%32.5%19.5%15.2%
SG&A, %0.404%
EBITDA growth, %18.0%28.1%15.9%0.4%
EBITDA margin, %13.6%12.2%11.8%11.4%9.95%
Net Income2,3092,9103,5633,7843,997
Net Income margin, % 7.59%7.24%6.69%5.95%5.45%
CAPEX/Revenue, %1.64%0.589%0.528%0.454%0.0507%
Net Debt/EBITDA1.4x0.3x1.4x0.8x0.9x
ROIC, %34.1%28.0%25.5%23.4%
ROE, %29.9%23.2%20.6%18.5%

Profitability and return on investment

EBITDA growth was partly attributed to margin expansion. In the last 3 years EBITDA margin dropped on 2.20 pp from 12.2% in FY2013 to 10% in FY2016.

Pc Jeweller shows attractive ROIC at 23.4% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 34.1% in FY2013. It's average ROIC for the last three years was 25.6%.

The company's Net Income margin decreased on 0.400 pp from 5.90% to 5.50% in FY2016. In the longer period the company's Net Income margin dropped on 1.70 pp from 7.20% in FY2013 to 5.50% in FY2016.

Pc Jeweller operates at ROE of 18.5%. It's average ROE for the last three years was 20.8%.

Capital expenditures (CAPEX)

The company's CAPEX/Revenue was 0.0507% in FY2016. CAPEX/Revenue dropped on 0.538 pp from 0.589% in FY2013 to 0.0507% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.344%.

Leverage (Debt)

Pc Jeweller has low debt level at 0.9x Net Debt/EBITDA - at the same time with high growth. In the longer period Pc Jeweller's leverage surged on 0.53x from 0.34x in FY2013 to 0.87x in FY2016.

Valuation vs. comparable companies

The market closed today at 9.6x EV/EBITDA for Pc Jeweller which is 60.9% lower than 24.5x Other Apparels & Accessories peer group avearge calculated on the basis of 133 companies. At the end of trading day today Pc Jeweller traded at 15.9x P/E which is 38.1% lower than 25.7x Other Apparels & Accessories peer group avearge calculated on the basis of 12 companies.

Management team

Balram Garg runs Pc Jeweller as a CEO.

Peers in Other Apparels & Accessories

Below we provide Pc Jeweller benchmarking against other companies in Other Apparels & Accessories industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Goldiam International ($GOLDIAM)8.3%18.1%-62.1%177.5%
Pearl Global Industries ($PGIL)36.5%23.0%-78.2%36.1%
Timex Group India ($TIMEX)-33.8%1.8%15.2%21.3%
Page Industries ($PAGEIND)26.3%37.5%30.0%15.5%
Bhartiya International ($BIL)20.9%36.7%34.7%12.1%
Median (20 companies)9.4%19.5%15.3%2.4%4.4%
Pc Jeweller ($PCJEWELLER)32.1%32.5%19.5%15.2%

Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Ceenik Exports (India) ($CEENIK)27.2%
Arrow Textiles ($ARROWTEX)25.2%
Page Industries ($PAGEIND)21.1%20.5%21.5%20.7%21.2%
Banaras Beads ($BANARBEADS)17.9%
Rupa & Company ($RUPA)12.7%15.0%15.3%14.5%
Median (33 companies)7.5%5.5%5.4%4.8%3.9%
Pc Jeweller ($PCJEWELLER)13.6%12.2%11.8%11.4%10.0%

Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Zodiac Clothing Co ($ZODIACLOTH)5.7%3.9%4.0%5.0%7.0%
Pearl Global Industries ($PGIL)0.9%0.7%1.3%3.1%1.7%
Page Industries ($PAGEIND)4.0%5.2%4.4%3.6%1.5%
Timex Group India ($TIMEX)1.5%2.1%1.1%0.6%1.3%
Gokaldas Exports ($GOKEX)1.3%1.1%0.3%0.6%0.6%
Median (10 companies)1.5%1.3%1.1%0.7%0.6%
Pc Jeweller ($PCJEWELLER)1.6%0.6%0.5%0.5%0.1%

Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Page Industries ($PAGEIND)54.9%58.5%61.6%59.2%60.1%
Ashapura Intimates Fashion ($AIFL)24.1%19.1%23.4%39.9%30.2%
Rupa & Company ($RUPA)22.4%27.1%25.8%23.8%
Tara Jewels ($TARAJEWELS)17.5%18.6%15.1%13.5%9.9%
Bhartiya International ($BIL)13.0%10.6%11.2%12.8%11.4%
Median (42 companies)9.8%7.2%10.9%7.3%8.1%
Pc Jeweller ($PCJEWELLER)34.1%28.0%25.5%23.4%

Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Tribhovandas Bhimji Zaveri ($TBZ)1.6x2.7x4.1x6.6x16.2x
Zodiac Clothing Co ($ZODIACLOTH)1.2x1.4x0.6x1.8x12.6x
Kanani Industries ($KANANIIND)11.3x7.9x6.0x8.5x6.9x
Asian Star Co ($ASTAR)7.1x7.1x5.9x4.8x5.2x
Bhartiya International ($BIL)2.3x3.2x3.5x3.1x3.4x
Median (21 companies)2.3x2.9x0.3x0.4x1.2x
Pc Jeweller ($PCJEWELLER)1.4x0.3x1.4x0.8x0.9x