The numbers tell that Vaibhav Global is a solid growth stock
21-05-2014 • About Vaibhav Global (
$VAIBHAVGBL) • By InTwits
Vaibhav Global is a growth stock in Internet & Catalogue Retail industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Vaibhav Global showed growth in the last financial year. Vaibhav Global's revenue surged on 45.4% in FY2014. EBITDA also increased considerably: 123% for the same period.
If we look for the longer period Vaibhav Global showed fast revenue growth of 35.2% from FY2011 to FY2014 annually. EBITDA surged on 33.7% from FY2011 to FY2014 annually.
Vaibhav Global ($VAIBHAVGBL) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 16,468 | 5,255 | 6,465 | 8,929 | 12,983 |
|---|
| Revenue growth, % | | -68.1% | 23.0% | 38.1% | 45.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | -265 | 599 | 758 | 642 | 1,432 |
|---|
| EBITDA growth, % | | -326.0% | 26.6% | -15.3% | 123.0% |
|---|
| EBITDA margin, % | -1.61% | 11.4% | 11.7% | 7.19% | 11.0% |
|---|
| Net Income | -680 | 431 | 685 | -856 | 1,525 |
|---|
| Net Income margin, % | -4.13% | 8.20% | 10.6% | -9.59% | 11.7% |
|---|
| |
| CAPEX | 23 | 59 | 75 | 135 | 169 |
|---|
| CAPEX/Revenue, % | 0.139% | 1.13% | 1.16% | 1.52% | 1.30% |
|---|
| Debt | 2,005 | 2,016 | 1,776 | 1,609 | 964 |
|---|
| Cash | 51 | 201 | 136 | 405 | 721 |
|---|
| Net Debt/EBITDA | -7.4x | 3.0x | 2.2x | 1.9x | 0.2x |
|---|
| |
| ROIC, % | -8.2% | 13.0% | 15.7% | 14.9% | 41.7% |
|---|
| ROE, % | -43.2% | 28.2% | 35.6% | -51.1% | 87.6% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin surged on 3.80 pp from 7.20% to 11% in FY2014. In the last 3 years Vaibhav Global's EBITDA margin decreased slightly on 0.400 pp from 11.4% in FY2011 to 11% in FY2014.
We call Vaibhav Global an attractive growth stock as together with the growth it delivers high ROIC at 41.7%. During the last three years it surged - it was 13.0% in FY2011. It's average level of ROIC for the last three years was 24.1%.
Vaibhav Global showed fast Net Income margin growth of 21.3 pp from -9.60% to 11.7% in FY2014. If we look for the longer period Net Income margin surged on 3.50 pp from 8.20% in FY2011 to 11.7% in FY2014.
Vaibhav Global operates at ROE of 87.6%. For the last three years the average ROE was 24.0%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 1.30%. The company showed fast CAPEX/Revenue growth of 0.178 pp from 1.13% in FY2011 to 1.30% in FY2014. It's average level of CAPEX/Revenue for the last three years was 1.33%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.2x Net Debt/EBITDA. In the last 3 years the company showed big decline in leverage of 2.86x from 3.03x in FY2011 to 0.17x in FY2014.
Peers in Internet & Catalogue Retail
Below you can find Vaibhav Global benchmarking vs. other companies in Internet & Catalogue Retail 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 |
|---|
| Info Edge (India) ($NAUKRI) | | -62.0% | 21.6% | 20.5% | 20.1% |
| |
|---|
| Median (1 company) | | -62.0% | 21.6% | 20.5% | 20.1% |
|---|
| Vaibhav Global ($VAIBHAVGBL) | | -68.1% | 23.0% | 38.1% | 45.4% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Info Edge (India) ($NAUKRI) | 7.4% | 25.9% | 30.2% | 25.6% | 17.0% |
| |
|---|
| Median (1 company) | 7.4% | 25.9% | 30.2% | 25.6% | 17.0% |
|---|
| Vaibhav Global ($VAIBHAVGBL) | -1.6% | 11.4% | 11.7% | 7.2% | 11.0% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Info Edge (India) ($NAUKRI) | 0.5% | 13.5% | 2.3% | 11.3% | 3.3% |
| |
|---|
| Median (1 company) | 0.5% | 13.5% | 2.3% | 11.3% | 3.3% |
|---|
| Vaibhav Global ($VAIBHAVGBL) | 0.1% | 1.1% | 1.2% | 1.5% | 1.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Info Edge (India) ($NAUKRI) | 16.1% | 18.6% | 22.8% | 19.0% | 10.5% |
| |
|---|
| Median (1 company) | 16.1% | 18.6% | 22.8% | 19.0% | 10.5% |
|---|
| Vaibhav Global ($VAIBHAVGBL) | -8.2% | 13.0% | 15.7% | 14.9% | 41.7% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Info Edge (India) ($NAUKRI) | -0.2x | -0.1x | -0.3x | -0.4x | -0.7x |
| |
|---|
| Median (1 company) | -0.2x | -0.1x | -0.3x | -0.4x | -0.7x |
|---|
| Vaibhav Global ($VAIBHAVGBL) | | 3.0x | 2.2x | 1.9x | 0.2x |
