Anil demonstrated healthy growth over the last few years
05-06-2014 • About Anil (
$ANILLTD) • By InTwits
Anil is a growth stock in Specialty Chemicals industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Anil showed fast growth in the last financial year. The company's revenue surged on 16.8% in FY2014. The growth also happened in EBITDA of 18.4% for the same period.
In the longer period Anil showed fast revenue growth of 17.8% from FY2011 to FY2014 annually. EBITDA surged on 17.2% from FY2011 to FY2014 annually.
Anil ($ANILLTD) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 11,113 | 5,041 | 6,447 | 7,060 | 8,249 |
|---|
| Revenue growth, % | | -54.6% | 27.9% | 9.5% | 16.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 0 | 879 | 1,166 | 1,194 | 1,414 |
|---|
| EBITDA growth, % | | -100.0% | 32.7% | 2.3% | 18.4% |
|---|
| EBITDA margin, % | 0% | 17.4% | 18.1% | 16.9% | 17.1% |
|---|
| Net Income | 0 | 401 | 504 | 458 | 483 |
|---|
| Net Income margin, % | 0% | 7.96% | 7.82% | 6.49% | 5.85% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 470 | 430 |
|---|
| CAPEX/Revenue, % | 0% | 0% | 0% | 6.66% | 5.21% |
|---|
| Debt | 0 | 2,431 | 2,655 | 4,152 | 5,385 |
|---|
| Cash | 0 | 45 | 88 | 125 | 60 |
|---|
| Net Debt/EBITDA | | 2.7x | 2.2x | 3.4x | 3.8x |
|---|
| |
| ROIC, % | | | 23.6% | 17.9% | 16.4% |
|---|
| ROE, % | | | 32.6% | 21.7% | 18.9% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Anil showed small growth in EBITDA margin of 0.200 pp from 16.9% to 17.1% in FY2014. In the longer period Anil showed small EBITDA margin decline of 0.300 pp from 17.4% in FY2011 to 17.1% in FY2014.
Anil shows attractive ROIC at 16.4% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at . Average ROIC for the last three years was 19.3%.
The company's Net Income margin dropped on 0.700 pp from 6.50% to 5.80% in FY2014. In the last 3 years the company's Net Income margin dropped on 2.20 pp from 8% in FY2011 to 5.80% in FY2014.
Anil operates at ROE of 18.9%. Average ROE for the last three years was 24.4%.
Capital expenditures (CAPEX)
To fuel this fast growth Anil had to invest in CAPEX.In FY2014 Anil had CAPEX/Revenue of 5.21%. Anil showed fast CAPEX/Revenue growth of 5.21 pp from 0% in FY2011 to 5.21% in FY2014.
Leverage (Debt)
The company has medium debt level at 3.8x Net Debt/EBITDA to maintain high growth. In the longer period Anil showed fast leverage growth of 1.05x from 2.71x in FY2011 to 3.77x in FY2014.
Valuation vs. comparable companies
At the end of trading day today Anil traded at 5.2x EV/EBITDA which is 67.5% lower than 16.0x Specialty Chemicals peer group avearge calculated on the basis of 76 companies. The company trades at 4.2x P/E which is 85.3% lower than 28.6x Specialty Chemicals industry avearge calculated based on 17 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Anil traded at 7.5x EV/(EBITDA-CAPEX) which is 30.3% higher than 5.7x Specialty Chemicals peer group avearge calculated on the basis of 12 companies.
Peers in Specialty Chemicals
Below we provide Anil 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 ($DAICHI) | | -68.8% | 20.7% | 31.4% | 45.4% |
| Dynemic Products ($DYNPRO) | | -55.8% | 27.4% | -0.0% | 40.6% |
| Camlin Fine Sciences ($CAMLINFIN) | | -75.1% | 95.3% | 11.4% | 36.1% |
| Sudarshan Chemical Industries ($SUDARSCHEM) | | -49.4% | 10.5% | 9.1% | 28.2% |
| Vinati Organics ($VINATIORGA) | | -63.9% | 38.7% | 23.6% | 25.9% |
| |
|---|
| Median (26 companies) | | -50.1% | 20.7% | 12.8% | 12.5% |
|---|
| Anil ($ANILLTD) | | -54.6% | 27.9% | 9.5% | 16.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Vinati Organics ($VINATIORGA) | 6.5% | 21.7% | 21.7% | 21.8% | 22.7% |
| Adi Finechem ($ADIFINCHM) | 1.5% | 18.2% | 15.1% | 14.0% | 22.1% |
| Solar Industries India ($SOLARINDS) | 5.3% | 18.1% | 18.5% | 17.5% | 17.9% |
| Ultramarine & Pigments ($ULTRAMAR) | 9.7% | 20.1% | 18.0% | 15.5% | 17.4% |
| Dynemic Products ($DYNPRO) | 7.2% | 17.3% | 13.6% | 11.2% | 16.0% |
| |
|---|
| Median (24 companies) | 5.5% | 11.6% | 10.6% | 12.0% | 10.6% |
|---|
| Anil ($ANILLTD) | | 17.4% | 18.1% | 16.9% | 17.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Adi Finechem ($ADIFINCHM) | 0.2% | 8.2% | 7.3% | 4.8% | 12.6% |
| Solar Industries India ($SOLARINDS) | 1.4% | 14.2% | 13.0% | 9.9% | 12.3% |
| Nitta Gelatin India ($NITTAGELA) | 5.5% | 21.3% | 8.8% | 4.6% | 8.5% |
| Meghmani Organics ($MEGH) | 9.4% | 9.9% | 10.2% | 10.3% | 7.9% |
| Camlin Fine Sciences ($CAMLINFIN) | 1.6% | 7.5% | 4.3% | 5.7% | 7.1% |
| |
|---|
| Median (18 companies) | 1.5% | 7.2% | 5.1% | 4.5% | 4.3% |
|---|
| Anil ($ANILLTD) | | | | 6.7% | 5.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Adi Finechem ($ADIFINCHM) | 3.0% | 27.6% | 30.6% | 29.8% | 46.4% |
| Vinati Organics ($VINATIORGA) | 36.1% | 31.4% | 29.6% | 26.2% | 30.6% |
| Pidilite Industries ($PIDILITIND) | 24.6% | 29.3% | 27.4% | 29.3% | 29.8% |
| Camlin Fine Sciences ($CAMLINFIN) | 11.3% | 9.9% | 11.1% | 17.8% | 24.2% |
| Plastiblends India ($PLASTIBLEN) | 15.6% | 19.4% | 18.3% | 15.8% | 24.0% |
| |
|---|
| Median (33 companies) | 16.3% | 15.5% | 15.0% | 14.9% | 11.2% |
|---|
| Anil ($ANILLTD) | | | 23.6% | 17.9% | 16.4% |
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 |
| Kiri Industries ($KIRIINDUS) | 13.7x | 3.9x | 8.2x | 31.3x | 10.6x |
| Vikas Globalone ($VIKASGLOB) | | 0.0x | 2.5x | 4.4x | 4.9x |
| Jayant Agro-Organics ($JAYAGROGN) | 5.6x | 3.9x | 2.8x | 3.1x | 4.6x |
| |
|---|
| Median (26 companies) | 1.0x | 1.3x | 1.4x | 1.3x | 1.7x |
|---|
| Anil ($ANILLTD) | | 2.7x | 2.2x | 3.4x | 3.8x |
