Looking for growth? Don't miss Vinati Organics with its track record of fast growth
17-05-2014 • About Vinati Organics (
$VINATIORGA) • By InTwits
Pay attention to Vinati Organics as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Vinati Organics showed fast growth in the last financial year. Vinati Organics's revenue surged on 25.9% in FY2014. Together with revenue growth Vinati Organics also managed to keep EBITDA growth. EBITDA grew 31.2% for the same period.
In the longer period Vinati Organics showed fast revenue growth of 29.2% from FY2011 to FY2014 annually. EBITDA surged on 31.2% from FY2011 to FY2014 annually.
Vinati Organics ($VINATIORGA) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 8,941 | 3,226 | 4,475 | 5,529 | 6,961 |
|---|
| Revenue growth, % | | -63.9% | 38.7% | 23.6% | 25.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 580 | 700 | 971 | 1,203 | 1,579 |
|---|
| EBITDA growth, % | | 20.7% | 38.8% | 23.9% | 31.2% |
|---|
| EBITDA margin, % | 6.48% | 21.7% | 21.7% | 21.8% | 22.7% |
|---|
| Net Income | 400 | 520 | 548 | 687 | 862 |
|---|
| Net Income margin, % | 4.48% | 16.1% | 12.2% | 12.4% | 12.4% |
|---|
| |
| CAPEX | 347 | 357 | 609 | 1,558 | 294 |
|---|
| CAPEX/Revenue, % | 3.88% | 11.1% | 13.6% | 28.2% | 4.22% |
|---|
| Debt | 631 | 770 | 1,727 | 2,373 | 1,616 |
|---|
| Cash | 3 | 16 | 304 | 307 | 417 |
|---|
| Net Debt/EBITDA | 1.1x | 1.1x | 1.5x | 1.7x | 0.8x |
|---|
| |
| ROIC, % | 36.1% | 31.4% | 29.6% | 26.2% | 30.6% |
|---|
| ROE, % | 48.8% | 42.8% | 33.1% | 32.1% | 31.3% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company's EBITDA margin increased slightly on 0.900 pp from 21.8% to 22.7% in FY2014. In the longer period Vinati Organics showed small growth in EBITDA margin of 1 pp from 21.7% in FY2011 to 22.7% in FY2014.
We call Vinati Organics an attractive growth stock as together with the growth it delivers high ROIC at 30.6%. Three years ago it was a bit higher at 31.4%. Average ROIC for the last three years was 28.8%.
The company showed no change in Net Income margin of 0 pp from 12.4% to 12.4% in FY2014. In the longer period the company's Net Income margin dropped on 3.70 pp from 16.1% in FY2011 to 12.4% in FY2014.
Vinati Organics operates at ROE of 31.3%. For the last three years the average ROE was 32.2%.
Capital expenditures (CAPEX)
Vinati Organics's CAPEX/Revenue was 4.22% in FY2014. CAPEX/Revenue dropped on 6.85 pp from 11.1% in FY2011 to 4.22% in FY2014. For the last three years the average CAPEX/Revenue was 15.3%.
Leverage (Debt)
Vinati Organics has low debt level at 0.8x Net Debt/EBITDA - at the same time with high growth. In the last 3 years Vinati Organics's leverage dropped on 0.32x from 1.08x in FY2011 to 0.76x in FY2014.
Peers in Specialty Chemicals
Below we provide Vinati Organics benchmarking against other companies in Specialty Chemicals 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 5 |
|---|
| Dai-Ichi Karkaria ($DAICHI) | | -68.8% | 20.7% | 31.4% | 45.4% |
| Nocil ($NOCIL) | | -45.8% | 6.4% | 1.8% | 22.3% |
| India Gelatine & Chemicals ($INDGELA) | | | | 17.0% | 3.2% |
| Nitta Gelatin India ($NITTAGELA) | | -52.7% | 21.2% | 27.8% | -5.5% |
| Cochin Minerals & Rutile ($COCHINM) | | -5.2% | 84.1% | -15.9% | -33.8% |
| |
|---|
| Median (5 companies) | | -49.3% | 20.9% | 17.0% | 3.2% |
|---|
| Vinati Organics ($VINATIORGA) | | -63.9% | 38.7% | 23.6% | 25.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| India Gelatine & Chemicals ($INDGELA) | | | 10.9% | 18.9% | 12.6% |
| Nocil ($NOCIL) | 6.6% | 11.8% | 10.7% | 4.3% | 10.6% |
| Dai-Ichi Karkaria ($DAICHI) | 2.3% | 11.6% | 8.5% | 5.8% | 8.5% |
| Nitta Gelatin India ($NITTAGELA) | 8.8% | 6.0% | 9.0% | 13.8% | 6.1% |
| Cochin Minerals & Rutile ($COCHINM) | 11.4% | 10.1% | 38.1% | 34.6% | 0.8% |
| |
|---|
| Median (5 companies) | 7.7% | 10.8% | 10.7% | 13.8% | 8.5% |
|---|
| Vinati Organics ($VINATIORGA) | 6.5% | 21.7% | 21.7% | 21.8% | 22.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Nitta Gelatin India ($NITTAGELA) | 5.5% | 21.3% | 8.8% | 4.6% | 8.5% |
| Nocil ($NOCIL) | 0.8% | 6.5% | 19.6% | 19.0% | 4.7% |
| Cochin Minerals & Rutile ($COCHINM) | 2.2% | 1.5% | 0.5% | 2.2% | 3.3% |
| |
|---|
| Median (3 companies) | 2.5% | 4.4% | 8.8% | 7.9% | 4.7% |
|---|
| Vinati Organics ($VINATIORGA) | 3.9% | 11.1% | 13.6% | 28.2% | 4.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Nocil ($NOCIL) | 13.4% | 12.9% | 10.6% | 2.5% | 7.9% |
| Nitta Gelatin India ($NITTAGELA) | 27.0% | 2.1% | 7.2% | 14.8% | 0.7% |
| Alkali Metals ($ALKALI) | 15.6% | 5.7% | -10.5% | 3.0% | -0.5% |
| Cochin Minerals & Rutile ($COCHINM) | 19.5% | 18.2% | 122.1% | 60.7% | -0.9% |
| Amal ($AMAL) | -79.5% | -65.0% | | | |
| |
|---|
| Median (8 companies) | 14.5% | 7.5% | 7.4% | 5.8% | 0.1% |
|---|
| Vinati Organics ($VINATIORGA) | 36.1% | 31.4% | 29.6% | 26.2% | 30.6% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cochin Minerals & Rutile ($COCHINM) | 1.6x | 0.7x | -0.0x | -0.0x | 32.3x |
| Alkali Metals ($ALKALI) | 0.9x | 4.3x | | 5.1x | 11.6x |
| Nitta Gelatin India ($NITTAGELA) | -0.0x | 3.9x | 2.7x | 1.3x | 3.8x |
| Nocil ($NOCIL) | 0.4x | 0.0x | 1.3x | 6.5x | 2.2x |
| Amal ($AMAL) | 164.7x | 6.8x | | | 0.0x |
| |
|---|
| Median (7 companies) | 0.7x | 2.3x | 0.3x | 1.3x | 2.2x |
|---|
| Vinati Organics ($VINATIORGA) | 1.1x | 1.1x | 1.5x | 1.7x | 0.8x |
