Ifgl Refractories is an attractive growth stock
17-05-2014 • About Ifgl Refractories (
$IFGLREFRAC) • By InTwits
Ifgl Refractories is a growth stock in Other Industrial Goods industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Ifgl Refractories showed fast growth in the last financial year. Ifgl Refractories's revenue surged on 15.9% in FY2014. In addition to revenue Ifgl Refractories also keeps delivering EBITDA growth. It was 105% in FY2014
If we look for the longer period Ifgl Refractories showed fast revenue growth of 18.2% from FY2011 to FY2014 annually. EBITDA surged on 42.7% from FY2011 to FY2014 annually.
Ifgl Refractories ($IFGLREFRAC) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 9,084 | 4,710 | 6,039 | 6,712 | 7,776 |
|---|
| Revenue growth, % | | -48.1% | 28.2% | 11.2% | 15.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 562 | 403 | 795 | 571 | 1,170 |
|---|
| EBITDA growth, % | | -28.3% | 97.2% | -28.2% | 105.0% |
|---|
| EBITDA margin, % | 6.19% | 8.56% | 13.2% | 8.51% | 15.1% |
|---|
| Net Income | 343 | 243 | 398 | 282 | 640 |
|---|
| Net Income margin, % | 3.78% | 5.15% | 6.60% | 4.20% | 8.23% |
|---|
| |
| CAPEX | 120 | 157 | 49 | 194 | 100 |
|---|
| CAPEX/Revenue, % | 1.32% | 3.33% | 0.807% | 2.89% | 1.28% |
|---|
| Debt | 793 | 1,253 | 1,128 | 1,308 | 1,169 |
|---|
| Cash | 95 | 87 | 140 | 107 | 297 |
|---|
| Net Debt/EBITDA | 1.2x | 2.9x | 1.2x | 2.1x | 0.7x |
|---|
| |
| ROIC, % | 21.9% | 11.8% | 20.0% | 11.7% | 23.5% |
|---|
| ROE, % | 27.4% | 16.3% | 21.6% | 12.9% | 23.2% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin surged on 6.60 pp from 8.50% to 15.1% in FY2014. In the longer period EBITDA margin surged on 6.50 pp from 8.60% in FY2011 to 15.1% in FY2014.
We call Ifgl Refractories an attractive growth stock as together with the growth it delivers high ROIC at 23.5%. Three years ago it was considerably lower at 11.8%. Average ROIC for the last three years was 18.4%.
Ifgl Refractories's Net Income margin surged on 4 pp from 4.20% to 8.20% in FY2014. In the last 3 years the company showed fast Net Income margin growth of 3 pp from 5.20% in FY2011 to 8.20% in FY2014.
Ifgl Refractories operates at ROE of 23.2%. Average ROE for the last three years was 19.2%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.28% in FY2014. CAPEX/Revenue dropped on 2.05 pp from 3.33% in FY2011 to 1.28% in FY2014. It's average level of CAPEX/Revenue for the last three years was 1.66%.
Leverage (Debt)
The company has low debt level at 0.7x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company's leverage dropped on 2.15x from 2.89x in FY2011 to 0.75x in FY2014.
Peers in Other Industrial Goods
Below we provide Ifgl Refractories benchmarking against other companies in Other Industrial Goods 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Vhcl Industries ($VHCLINDUS) | | | | 110.4% | 3.8% |
| Graphite India ($GRPHIDM) | | -29.6% | 32.5% | 1.9% | 3.1% |
| Heg ($HEG) | | -22.2% | 27.9% | 13.6% | -9.8% |
| |
|---|
| Median (3 companies) | | -25.9% | 30.2% | 13.6% | 3.1% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | | -48.1% | 28.2% | 11.2% | 15.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Heg ($HEG) | 23.8% | 20.7% | 17.0% | 18.1% | 16.9% |
| Graphite India ($GRPHIDM) | 19.5% | 21.7% | 16.9% | 14.1% | 12.7% |
| Vhcl Industries ($VHCLINDUS) | | | 8.1% | 4.4% | 6.3% |
| |
|---|
| Median (3 companies) | 15.3% | 21.2% | 16.9% | 14.1% | 12.7% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 6.2% | 8.6% | 13.2% | 8.5% | 15.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Heg ($HEG) | 5.0% | 7.3% | 14.4% | 9.3% | 18.7% |
| Vhcl Industries ($VHCLINDUS) | | | 7.1% | 0.4% | 2.9% |
| Graphite India ($GRPHIDM) | 1.3% | 6.8% | 7.1% | 2.7% | 1.2% |
| |
|---|
| Median (3 companies) | 1.7% | 7.0% | 7.1% | 2.7% | 2.9% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 1.3% | 3.3% | 0.8% | 2.9% | 1.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Snl Bearings ($SNL) | 5.2% | 54.6% | 61.1% | 48.2% | 31.9% |
| Vhcl Industries ($VHCLINDUS) | | | 56.8% | 22.6% | 20.2% |
| Heg ($HEG) | 18.2% | 9.8% | 9.0% | 10.4% | 8.3% |
| Graphite India ($GRPHIDM) | 18.4% | 13.3% | 12.6% | 8.6% | 8.0% |
| Insilco ($INSILCO) | 3.1% | 2.4% | 1.6% | -3.3% | |
| |
|---|
| Median (5 companies) | 11.7% | 11.5% | 12.6% | 10.4% | 14.3% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 21.9% | 11.8% | 20.0% | 11.7% | 23.5% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Vhcl Industries ($VHCLINDUS) | | | 1.4x | 2.6x | 4.0x |
| Heg ($HEG) | 2.1x | 3.9x | 5.2x | 4.1x | 3.3x |
| Graphite India ($GRPHIDM) | 0.9x | 1.0x | 2.0x | 2.7x | 1.7x |
| Snl Bearings ($SNL) | 3.6x | 0.3x | 0.2x | 0.6x | 1.1x |
| |
|---|
| Median (4 companies) | 1.5x | 0.7x | 1.4x | 2.6x | 2.5x |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 1.2x | 2.9x | 1.2x | 2.1x | 0.7x |
