Container Corporation Of India demonstrates fast growth
03-06-2014 • About Container Corporation Of India (
$CONCOR) • By InTwits
Container Corporation Of India is a fast-growing stock in Transport Related Services industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Container Corporation Of India showed fast growth in the last financial year. Container Corporation Of India's revenue surged on 19.6% in FY2014. At the same time Container Corporation Of India well managed its profitability and also showed EBITDA growth of 14.1% for the same period.
In the last 3 years Container Corporation Of India showed fast revenue growth of 10.9% from FY2011 to FY2014 annually. EBITDA surged on 5.58% from FY2011 to FY2014 annually.
Container Corporation Of India ($CONCOR) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 75,386 | 38,992 | 41,009 | 44,450 | 53,167 |
|---|
| Revenue growth, % | | -48.3% | 5.2% | 8.4% | 19.6% |
|---|
| SG&A, % | 3.88% | | | | 0.0594% |
|---|
| EBITDA | 9,594 | 10,173 | 10,229 | 10,495 | 11,971 |
|---|
| EBITDA growth, % | | 6.0% | 0.6% | 2.6% | 14.1% |
|---|
| EBITDA margin, % | 12.7% | 26.1% | 24.9% | 23.6% | 22.5% |
|---|
| Net Income | 7,776 | 8,764 | 8,657 | 9,306 | 9,443 |
|---|
| Net Income margin, % | 10.3% | 22.5% | 21.1% | 20.9% | 17.8% |
|---|
| |
| CAPEX | 3,502 | 3,150 | 2,304 | 5,921 | 4,927 |
|---|
| CAPEX/Revenue, % | 4.65% | 8.08% | 5.62% | 13.3% | 9.27% |
|---|
| Debt | 424 | 471 | 581 | 385 | 1,177 |
|---|
| Cash | 19,925 | 566 | 9,033 | 11,010 | 27,499 |
|---|
| Net Debt/EBITDA | -2.0x | -0.0x | -0.8x | -1.0x | -2.2x |
|---|
| |
| ROIC, % | 19.2% | 17.8% | 15.5% | 14.1% | 14.2% |
|---|
| ROE, % | 19.4% | 19.0% | 16.5% | 15.8% | 14.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period the company's EBITDA margin dropped on 3.60 pp from 26.1% in FY2011 to 22.5% in FY2014.
We call Container Corporation Of India an attractive growth stock as together with the growth it delivers high ROIC at 14.2%. During the last three years it dropped - it was 17.8% in FY2011. For the last three years the average ROIC was 14.6%.
The company showed big decline in Net Income margin of 3.10 pp from 20.9% to 17.8% in FY2014. In the last 3 years Net Income margin dropped on 4.70 pp from 22.5% in FY2011 to 17.8% in FY2014.
Container Corporation Of India operates at ROE of 14.4%. For the last three years the average ROE was 15.6%.
Capital expenditures (CAPEX)
To this fast growth Container Corporation Of India had to invest in CAPEX.In FY2014 the company had CAPEX/Revenue of 9.27%. The company's CAPEX/Revenue surged on 1.19 pp from 8.08% in FY2011 to 9.27% in FY2014. Average CAPEX/Revenue for the last three years was 9.40%.
Leverage (Debt)
Having such a fast growth profile Container Corporation Of India keeps negative net debt at -2.2x Net Debt/EBITDA. In the longer period leverage surged on 2.19x from -0.01x in FY2011 to -2.20x in FY2014.
Peers in Transport Related Services
Below we provide Container Corporation Of India benchmarking against other companies in Transport Related Services 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 |
|---|
| Til ($TIL) | | -21.7% | 0.4% | -15.1% | 11.8% |
| Action Construction Equipment ($ACE) | | -5.1% | 22.2% | -22.1% | -7.8% |
| |
|---|
| Median (2 companies) | | -13.4% | 11.3% | -18.6% | 2.0% |
|---|
| Container Corporation Of India ($CONCOR) | | -48.3% | 5.2% | 8.4% | 19.6% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Til ($TIL) | 7.0% | 9.0% | 5.4% | 7.0% | 8.2% |
| Action Construction Equipment ($ACE) | 5.0% | 8.5% | 6.5% | 5.6% | 4.1% |
| |
|---|
| Median (2 companies) | 5.0% | 8.8% | 5.9% | 6.3% | 6.1% |
|---|
| Container Corporation Of India ($CONCOR) | 12.7% | 26.1% | 24.9% | 23.6% | 22.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Action Construction Equipment ($ACE) | 1.7% | 4.8% | 8.8% | 6.5% | 4.6% |
| Til ($TIL) | 2.3% | 6.0% | 11.7% | 5.6% | 2.7% |
| |
|---|
| Median (2 companies) | 2.3% | 5.4% | 10.3% | 6.1% | 3.6% |
|---|
| Container Corporation Of India ($CONCOR) | 4.6% | 8.1% | 5.6% | 13.3% | 9.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Til ($TIL) | 23.3% | 17.8% | 6.8% | 5.7% | 7.7% |
| Action Construction Equipment ($ACE) | 14.7% | 18.9% | 10.9% | 5.2% | 2.2% |
| Kernex Microsystems (India) ($KERNEX) | -7.8% | 6.0% | 5.7% | | |
| |
|---|
| Median (3 companies) | 14.7% | 17.8% | 6.8% | 5.5% | 4.9% |
|---|
| Container Corporation Of India ($CONCOR) | 19.2% | 17.8% | 15.5% | 14.1% | 14.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Til ($TIL) | 0.8x | 1.4x | 4.6x | 5.8x | 5.1x |
| Action Construction Equipment ($ACE) | 0.8x | 0.8x | 2.6x | 4.2x | 5.6x |
| Kernex Microsystems (India) ($KERNEX) | | 2.1x | 1.9x | 0.0x | |
| |
|---|
| Median (3 companies) | 0.8x | 1.4x | 2.6x | 4.2x | 5.4x |
|---|
| Container Corporation Of India ($CONCOR) | -2.0x | -0.0x | -0.8x | -1.0x | -2.2x |
