Wim Plast is an attractive growth stock: revenue grew 23.3% and EBITDA 22.3% annually over the last three years

02-06-2014 • About Wim Plast ($WIMPLAST) • By InTwits

Wim Plast is a growth stock in Plastic Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story

Wim Plast showed fast growth in the last financial year. The company's revenue surged on 19.5% in FY2014. Together with revenue growth Wim Plast also managed to keep EBITDA growth. EBITDA grew 20.7% for the same period.

In the last 3 years the company showed fast revenue growth of 23.3% from FY2011 to FY2014 annually. EBITDA surged on 22.3% from FY2011 to FY2014 annually.

Wim Plast ($WIMPLAST) financials for the last 5 years

mln. INR	FY2010	FY2011	FY2012	FY2013	FY2014
Revenue	4,377	1,580	2,015	2,481	2,964
Revenue growth, %		-63.9%	27.5%	23.1%	19.5%
SG&A, %
EBITDA	253	293	366	444	536
EBITDA growth, %		15.5%	24.9%	21.4%	20.7%
EBITDA margin, %	5.79%	18.5%	18.1%	17.9%	18.1%
Net Income	170	182	227	283	325
Net Income margin, %	3.89%	11.6%	11.3%	11.4%	11.0%
CAPEX	84	85	288	200	109
CAPEX/Revenue, %	1.92%	5.38%	14.3%	8.06%	3.69%
Debt	2	0	0	0	0
Cash	24	7	18	27	37
Net Debt/EBITDA	-0.1x	-0.0x	-0.1x	-0.1x	-0.1x
ROIC, %	34.2%	31.0%	31.8%	31.2%	31.0%
ROE, %	27.7%	24.0%	24.5%	24.9%	23.6%

Profitability and return on investment

EBITDA growth was supported by margin expansion. Wim Plast showed small growth in EBITDA margin of 0.200 pp from 17.9% to 18.1% in FY2014. In the longer period Wim Plast's EBITDA margin decreased slightly on 0.400 pp from 18.5% in FY2011 to 18.1% in FY2014.

Wim Plast shows attractive ROIC at 31.0% for the last 12 months which assumes stable development model. Three years ago it was about the same at 31.0%. It's average ROIC for the last three years was 31.3%.

Wim Plast's Net Income margin decreased slightly on 0.400 pp from 11.4% to 11% in FY2014. In the longer period Wim Plast showed decline of 0.600 pp from 11.6% in FY2011 to 11% in FY2014.

Wim Plast operates at ROE of 23.6%. Average ROE for the last three years was 24.3%.

Capital expenditures (CAPEX)

Wim Plast's CAPEX/Revenue was 3.69% in FY2014. The company showed big decline in CAPEX/Revenue of 1.69 pp from 5.38% in FY2011 to 3.69% in FY2014. It's average level of CAPEX/Revenue for the last three years was 8.69%.

Leverage (Debt)

Wim Plast has negative net debt at -0.1x Net Debt/EBITDA - at the same time with high growth. In the last 3 years Wim Plast showed fast leverage growth of 0.04x from -0.02x in FY2011 to -0.07x in FY2014.

Valuation vs. comparable companies

The company trades at 9.4x EV/EBITDA which is 41.2% lower than 16.0x Plastic Products industry avearge calculated based on 93 companies. The company trades at 15.6x P/E which is 33.7% lower 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 11.8x EV/(EBITDA-CAPEX) which is not surprisingly 171% higher than 4.4x Plastic Products industry avearge calculated based on 6 companies.

Peers in Plastic Products

Below we provide Wim Plast benchmarking against other companies in Plastic Products 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
Astral Poly Technik ($ASTRAL)		41.6%	41.7%	41.6%	30.8%
Shaily Engineering Plastics ($SHAILY)		-37.7%	14.9%	-16.0%	23.3%
Jain Irrigation Systems ($JISLJALEQS)		20.2%	20.9%	2.1%	16.1%
Caprihans India ($CAPRIHANS)		-36.2%	4.1%	13.2%	11.1%
Median (4 companies)		-36.2%	14.9%	13.2%	19.7%
Wim Plast ($WIMPLAST)		-63.9%	27.5%	23.1%	19.5%

Top companies by EBITDA margin, %

	FY2010	FY2011	FY2012	FY2013	FY2014
Top
Shaily Engineering Plastics ($SHAILY)	6.0%	11.5%	14.3%	13.9%	16.0%
Astral Poly Technik ($ASTRAL)	14.4%	13.5%	14.2%	14.2%	14.8%
Jain Irrigation Systems ($JISLJALEQS)	17.5%	18.6%	16.6%	12.6%	12.6%
Caprihans India ($CAPRIHANS)	4.4%	6.0%	5.7%	6.2%	4.7%
Median (4 companies)	6.0%	11.5%	14.2%	12.6%	13.7%
Wim Plast ($WIMPLAST)	5.8%	18.5%	18.1%	17.9%	18.1%

Top companies by CAPEX/Revenue, %

	FY2010	FY2011	FY2012	FY2013	FY2014
Top
Shaily Engineering Plastics ($SHAILY)	1.8%	1.9%	3.7%		10.7%
Astral Poly Technik ($ASTRAL)	6.2%	9.3%	11.9%	8.4%	8.6%
Jain Irrigation Systems ($JISLJALEQS)	13.8%	12.2%	10.9%	6.0%	5.7%
Median (3 companies)	2.1%	3.2%	7.3%	7.2%	8.6%
Wim Plast ($WIMPLAST)	1.9%	5.4%	14.3%	8.1%	3.7%

Top companies by ROIC, %

	FY2010	FY2011	FY2012	FY2013	FY2014
Top 5
Astral Poly Technik ($ASTRAL)	17.4%	22.6%	29.3%	31.1%	33.3%
Shaily Engineering Plastics ($SHAILY)	9.9%	12.1%	19.5%	15.0%	19.3%
Jain Irrigation Systems ($JISLJALEQS)	14.7%	15.0%	13.4%	8.3%	9.0%
Alfa Ica (India) ($ALFAICA)	8.3%	5.3%	9.1%	10.3%
Caprihans India ($CAPRIHANS)		7.9%	7.5%	9.7%
Median (6 companies)	12.3%	12.1%	11.5%	10.0%	19.3%
Wim Plast ($WIMPLAST)	34.2%	31.0%	31.8%	31.2%	31.0%

Top companies by Net Debt / EBITDA

	FY2010	FY2011	FY2012	FY2013	FY2014
Top 5
Jain Irrigation Systems ($JISLJALEQS)	3.3x	3.4x	3.8x	5.1x	4.8x
Shaily Engineering Plastics ($SHAILY)	4.2x	4.0x	1.9x	1.8x	1.9x
Alfa Ica (India) ($ALFAICA)	4.5x	6.1x	4.3x	1.8x
Astral Poly Technik ($ASTRAL)	2.0x	0.4x	1.0x	0.7x	0.9x
Prima Plastics ($PRIMAPLA)		0.6x	1.4x	0.7x
Median (6 companies)	3.3x	2.0x	1.6x	1.2x	1.4x
Wim Plast ($WIMPLAST)	-0.1x	-0.0x	-0.1x	-0.1x	-0.1x

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