Camlin Fine Sciences's growth is outstanding: revenue grew 43.6% and EBITDA 61.0% annually over the last three years
05-06-2014 • About Camlin Fine Sciences (
$CAMLINFIN) • By InTwits
Camlin Fine Sciences is a fast-growing stock in Specialty Chemicals industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Camlin Fine Sciences showed growth in the last financial year. The company's revenue surged on 36.1% in FY2014. At the same time Camlin Fine Sciences well managed its profitability and also showed EBITDA growth of 35.7% for the same period.
In the longer period the company showed fast revenue growth of 43.6% from FY2011 to FY2014 annually. EBITDA surged on 61.0% from FY2011 to FY2014 annually.
Camlin Fine Sciences ($CAMLINFIN) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 6,884 | 1,717 | 3,352 | 3,736 | 5,087 |
|---|
| Revenue growth, % | | -75.1% | 95.3% | 11.4% | 36.1% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 127 | 156 | 304 | 478 | 649 |
|---|
| EBITDA growth, % | | 22.1% | 95.3% | 57.3% | 35.7% |
|---|
| EBITDA margin, % | 1.85% | 9.07% | 9.07% | 12.8% | 12.8% |
|---|
| Net Income | 12 | 71 | 38 | 151 | 287 |
|---|
| Net Income margin, % | 0.176% | 4.14% | 1.13% | 4.04% | 5.64% |
|---|
| |
| CAPEX | 110 | 129 | 144 | 212 | 363 |
|---|
| CAPEX/Revenue, % | 1.60% | 7.54% | 4.29% | 5.68% | 7.13% |
|---|
| Debt | 466 | 682 | 1,248 | 1,257 | 1,427 |
|---|
| Cash | 8 | 96 | 42 | 163 | 45 |
|---|
| Net Debt/EBITDA | 3.6x | 3.8x | 4.0x | 2.3x | 2.1x |
|---|
| |
| ROIC, % | 11.3% | 9.9% | 11.1% | 17.8% | 24.2% |
|---|
| ROE, % | 4.2% | 18.8% | 7.6% | 25.5% | 36.2% |
|---|
Profitability and return on investment
There was no change in EBITDA margin in FY2014, it stayed constant at 12.8%. In the last 3 years EBITDA margin surged on 3.70 pp from 9.10% in FY2011 to 12.8% in FY2014.
We call Camlin Fine Sciences an attractive growth stock as together with the growth it delivers high ROIC at 24.2%. Three years ago it was considerably lower at 9.94%. It's average level of ROIC for the last three years was 17.7%.
Camlin Fine Sciences's Net Income margin surged on 1.60 pp from 4% to 5.60% in FY2014. In the longer period the company showed fast Net Income margin growth of 1.50 pp from 4.10% in FY2011 to 5.60% in FY2014.
Camlin Fine Sciences operates at ROE of 36.2%. For the last three years the average ROE was 23.1%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.The company's CAPEX/Revenue was 7.13% in FY2014. The company's CAPEX/Revenue decreased on 0.411 pp from 7.54% in FY2011 to 7.13% in FY2014. It's average level of CAPEX/Revenue for the last three years was 5.70%.
Leverage (Debt)
Having such a fast growth profile Camlin Fine Sciences keeps medium debt level at 2.1x Net Debt/EBITDA. In the last 3 years Camlin Fine Sciences's leverage dropped on 1.64x from 3.77x in FY2011 to 2.13x in FY2014.
Valuation vs. comparable companies
The market closed today at 8.2x EV/EBITDA for Camlin Fine Sciences which is 49% lower than 16.0x Specialty Chemicals peer group avearge calculated on the basis of 76 companies. The company trades at 13.6x P/E which is 52.3% 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. The market closed today at 18.5x EV/(EBITDA-CAPEX) for Camlin Fine Sciences which is 222% higher than 5.7x Specialty Chemicals peer group avearge calculated on the basis of 12 companies.
Management team
Ashish Subhash Dandekar runs Camlin Fine Sciences as a CEO.
Peers in Specialty Chemicals
Below you can find Camlin Fine Sciences benchmarking vs. other companies in Specialty Chemicals 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 5 |
|---|
| Dai-Ichi Karkaria ($DAICHI) | | -68.8% | 20.7% | 31.4% | 45.4% |
| Dynemic Products ($DYNPRO) | | -55.8% | 27.4% | -0.0% | 40.6% |
| Sudarshan Chemical Industries ($SUDARSCHEM) | | -49.4% | 10.5% | 9.1% | 28.2% |
| Vinati Organics ($VINATIORGA) | | -63.9% | 38.7% | 23.6% | 25.9% |
| Kiri Industries ($KIRIINDUS) | | 244.4% | 7.9% | -86.5% | 24.8% |
| |
|---|
| Median (26 companies) | | -50.1% | 20.7% | 11.8% | 12.5% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | | -75.1% | 95.3% | 11.4% | 36.1% |
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% |
| Anil ($ANILLTD) | | 17.4% | 18.1% | 16.9% | 17.1% |
| |
|---|
| Median (24 companies) | 5.7% | 11.8% | 10.7% | 12.2% | 10.6% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 1.9% | 9.1% | 9.1% | 12.8% | 12.8% |
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% |
| Kiri Industries ($KIRIINDUS) | 5.9% | 5.3% | 5.4% | 4.5% | 5.6% |
| |
|---|
| Median (18 companies) | 1.4% | 7.0% | 5.2% | 4.5% | 4.3% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 1.6% | 7.5% | 4.3% | 5.7% | 7.1% |
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 ($PIDILITIND) | 24.6% | 29.3% | 27.4% | 29.3% | 29.8% |
| Plastiblends India ($PLASTIBLEN) | 15.6% | 19.4% | 18.3% | 15.8% | 24.0% |
| Keltech Energies ($KELENRG) | 42.3% | 11.5% | 15.3% | 12.8% | 23.0% |
| |
|---|
| Median (33 companies) | 17.0% | 16.3% | 15.6% | 14.9% | 11.2% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 11.3% | 9.9% | 11.1% | 17.8% | 24.2% |
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 ($JAYAGROGN) | 5.6x | 3.9x | 2.8x | 3.1x | 4.6x |
| |
|---|
| Median (26 companies) | 1.0x | 1.3x | 1.4x | 1.3x | 1.7x |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 3.6x | 3.8x | 4.0x | 2.3x | 2.1x |
