Ptl Enterprises is an attractive growth stock: revenue grew 16.1% annually over the last three years
09-05-2014 • About Ptl Enterprises (
$PTL) • By InTwits
Ptl Enterprises is a growth stock in Comm.Trading & Distribution industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Ptl Enterprises showed fast growth in the last financial year. Ptl Enterprises's revenue surged on 17.7% in FY2014. EBITDA also increased: 12.0% for the same period.
If we look for the longer period the company showed fast revenue growth of 16.1% from FY2011 to FY2014 annually. EBITDA surged on 6.96% from FY2011 to FY2014 annually.
Ptl Enterprises ($PTL) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 4,859 | 1,943 | 2,291 | 2,580 | 3,038 |
|---|
| Revenue growth, % | | -60.0% | 17.9% | 12.6% | 17.7% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 97 | 535 | 609 | 585 | 655 |
|---|
| EBITDA growth, % | | 452.6% | 13.7% | -4.0% | 12.0% |
|---|
| EBITDA margin, % | 1.99% | 27.6% | 26.6% | 22.7% | 21.6% |
|---|
| Net Income | 37 | 159 | 175 | 171 | 243 |
|---|
| Net Income margin, % | 0.765% | 8.20% | 7.62% | 6.63% | 7.99% |
|---|
| |
| CAPEX | 36 | 20 | 113 | 115 | 73 |
|---|
| CAPEX/Revenue, % | 0.740% | 1.04% | 4.95% | 4.47% | 2.41% |
|---|
| Debt | 1,725 | 2,089 | 1,429 | 1,248 | 1,504 |
|---|
| Cash | 23 | 111 | 59 | 77 | 218 |
|---|
| Net Debt/EBITDA | 17.6x | 3.7x | 2.2x | 2.0x | 2.0x |
|---|
| |
| ROIC, % | 0.6% | 18.1% | 18.5% | 19.5% | 21.1% |
|---|
| ROE, % | 27.9% | 28.5% | 17.3% | 15.5% | 19.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period Ptl Enterprises's EBITDA margin dropped on 6 pp from 27.6% in FY2011 to 21.6% in FY2014.
We call Ptl Enterprises an attractive growth stock as together with the growth it delivers high ROIC at 21.1%. Three years ago it was a bit lower at 18.1%. It's average ROIC for the last three years was 19.7%.
Ptl Enterprises showed fast Net Income margin growth of 1.40 pp from 6.60% to 8% in FY2014. In the longer period Ptl Enterprises's Net Income margin decreased slightly on 0.200 pp from 8.20% in FY2011 to 8% in FY2014.
Ptl Enterprises operates at ROE of 19.7%. It's average level of ROE for the last three years was 17.5%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.41% in FY2014. CAPEX/Revenue surged on 1.37 pp from 1.04% in FY2011 to 2.41% in FY2014. For the last three years the average CAPEX/Revenue was 3.94%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 2.0x Net Debt/EBITDA. In the last 3 years the company showed big decline in leverage of 1.73x from 3.69x in FY2011 to 1.96x in FY2014.
Valuation vs. comparable companies
At the end of trading day today Ptl Enterprises traded at 4.6x EV/EBITDA which is 71.1% lower than 16.0x Comm.Trading & Distribution peer group avearge calculated on the basis of 330 companies. The market closed today at 7.2x P/E for Ptl Enterprises which is 97.7% lower than 316.8x Comm.Trading & Distribution peer group avearge calculated on the basis of 14 companies.
Peers in Comm.Trading & Distribution
Below we provide Ptl Enterprises benchmarking against other companies in Comm.Trading & Distribution 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 ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Bombay Cycle & Motor Agency ($BOMBCYC) | 55.6% | | | 15.1% | 13.5% |
| Kanel Industries ($KANELIND) | | | | | |
| Nouveau Global Ventures ($NOUVEAU) | | 2.5% | 0.7% | | |
| Remi Elektrotechnik ($REMIELEK) | | | | | |
| Agrimony Commodities ($AGRIMONY) | | | | | |
| |
|---|
| Median (5 companies) | 55.6% | 2.5% | 0.7% | 15.1% | 13.5% |
|---|
| Ptl Enterprises ($PTL) | 0.6% | 18.1% | 18.5% | 19.5% | 21.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Bombay Cycle & Motor Agency ($BOMBCYC) | -0.3x | | -6.8x | -4.3x | -5.6x |
| |
|---|
| Median (1 company) | -0.0x | 0.5x | -3.7x | -4.3x | -5.6x |
|---|
| Ptl Enterprises ($PTL) | 17.6x | 3.7x | 2.2x | 2.0x | 2.0x |
