The numbers tell that Astral Poly Technik is a solid growth stock
12-05-2014 • About Astral Poly Technik (
$ASTRAL) • By InTwits
Astral Poly Technik is an attractive growth stock in Plastic Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Astral Poly Technik showed growth in the last financial year. The company's revenue surged on 30.8% in FY2014. In addition to revenue Astral Poly Technik also keeps delivering EBITDA growth. It was 36.5% in FY2014
In the longer period the company showed fast revenue growth of 38.0% from FY2011 to FY2014 annually. EBITDA surged on 42.4% from FY2011 to FY2014 annually.
Astral Poly Technik ($ASTRAL) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 2,904 | 4,113 | 5,827 | 8,252 | 10,796 |
|---|
| Revenue growth, % | | 41.6% | 41.7% | 41.6% | 30.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 418 | 554 | 828 | 1,172 | 1,600 |
|---|
| EBITDA growth, % | | 32.6% | 49.4% | 41.5% | 36.5% |
|---|
| EBITDA margin, % | 14.4% | 13.5% | 14.2% | 14.2% | 14.8% |
|---|
| Net Income | 277 | 328 | 395 | 606 | 789 |
|---|
| Net Income margin, % | 9.55% | 7.99% | 6.78% | 7.35% | 7.31% |
|---|
| |
| CAPEX | 179 | 383 | 696 | 696 | 924 |
|---|
| CAPEX/Revenue, % | 6.18% | 9.30% | 11.9% | 8.43% | 8.56% |
|---|
| Debt | 882 | 343 | 938 | 923 | 1,420 |
|---|
| Cash | 42 | 102 | 110 | 115 | 9 |
|---|
| Net Debt/EBITDA | 2.0x | 0.4x | 1.0x | 0.7x | 0.9x |
|---|
| |
| ROIC, % | 17.4% | 22.6% | 29.3% | 31.1% | 33.3% |
|---|
| ROE, % | 26.4% | 24.8% | 23.8% | 28.5% | 28.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased slightly on 0.600 pp from 14.2% to 14.8% in FY2014. In the longer period EBITDA margin increased on 1.30 pp from 13.5% in FY2011 to 14.8% in FY2014.
We call Astral Poly Technik an attractive growth stock as together with the growth it delivers high ROIC at 33.3%. During the last three years it surged - it was 22.6% in FY2011. Average ROIC for the last three years was 31.2%.
Astral Poly Technik's Net Income margin didn't change on 0 pp from 7.30% to 7.30% in FY2014. In the last 3 years Astral Poly Technik's Net Income margin decreased on 0.700 pp from 8% in FY2011 to 7.30% in FY2014.
Astral Poly Technik operates at ROE of 28.4%. For the last three years the average ROE was 26.9%.
Capital expenditures (CAPEX)
To this fast growth Astral Poly Technik had to invest in CAPEX.In FY2014 the company had CAPEX/Revenue of 8.56%. CAPEX/Revenue decreased on 0.742 pp from 9.30% in FY2011 to 8.56% in FY2014. It's average level of CAPEX/Revenue for the last three years was 9.65%.
Leverage (Debt)
Having such a fast growth profile Astral Poly Technik keeps low debt level at 0.9x Net Debt/EBITDA. If we look for the longer period the company showed fast leverage growth of 0.45x from 0.44x in FY2011 to 0.88x in FY2014.
Valuation vs. comparable companies
The company trades at 20.1x EV/EBITDA which is not surprisingly 25.8% higher than 16.0x Plastic Products industry avearge calculated based on 93 companies. The company trades at 39.0x P/E which is not surprisingly 65.6% higher than 23.5x Plastic Products industry avearge calculated based on 9 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 47.6x EV/(EBITDA-CAPEX) which is not surprisingly 992% higher than 4.4x Plastic Products industry avearge calculated based on 6 companies.
Management team
Sandeep P Engineer runs Astral Poly Technik as a CEO.
Peers in Plastic Products
Below you can find Astral Poly Technik benchmarking vs. other companies in Plastic Products 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 |
|---|
| Prima Plastics ($PRIMAPLA) | | -51.4% | 4.4% | 25.2% | |
| |
|---|
| Median (1 company) | | -51.4% | 4.4% | 25.2% | |
|---|
| Astral Poly Technik ($ASTRAL) | | 41.6% | 41.7% | 41.6% | 30.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Prima Plastics ($PRIMAPLA) | | 9.7% | 10.0% | 6.8% | |
| |
|---|
| Median (1 company) | | 9.7% | 10.0% | 6.8% | |
|---|
| Astral Poly Technik ($ASTRAL) | 14.4% | 13.5% | 14.2% | 14.2% | 14.8% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Prima Plastics ($PRIMAPLA) | | | 9.7% | 5.9% | |
| |
|---|
| Median (1 company) | | | 9.7% | 5.9% | |
|---|
| Astral Poly Technik ($ASTRAL) | 17.4% | 22.6% | 29.3% | 31.1% | 33.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Prima Plastics ($PRIMAPLA) | | 0.6x | 1.4x | 0.7x | |
| |
|---|
| Median (1 company) | | 0.6x | 1.4x | 0.7x | |
|---|
| Astral Poly Technik ($ASTRAL) | 2.0x | 0.4x | 1.0x | 0.7x | 0.9x |
