The numbers tell that Kaveri Seed Company's growth is outstanding
05-06-2014 • About Kaveri Seed Company (
$KSCL) • By InTwits
Kaveri Seed Company is a fast-growing stock in Other Agricultural Products industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Kaveri Seed Company showed growth in the last financial year. Kaveri Seed Company's revenue surged on 42.0% in FY2014. The growth also happened in EBITDA of 58.8% for the same period.
If we look for the longer period Kaveri Seed Company showed fast revenue growth of 63.0% from FY2011 to FY2014 annually. EBITDA surged on 60.2% from FY2011 to FY2014 annually.
Kaveri Seed Company ($KSCL) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 13,594 | 2,337 | 3,724 | 7,120 | 10,111 |
|---|
| Revenue growth, % | | -82.8% | 59.4% | 91.2% | 42.0% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 353 | 538 | 770 | 1,393 | 2,212 |
|---|
| EBITDA growth, % | | 52.6% | 43.0% | 81.0% | 58.8% |
|---|
| EBITDA margin, % | 2.59% | 23.0% | 20.7% | 19.6% | 21.9% |
|---|
| Net Income | 291 | 425 | 581 | 1,281 | 2,090 |
|---|
| Net Income margin, % | 2.14% | 18.2% | 15.6% | 18.0% | 20.7% |
|---|
| |
| CAPEX | 339 | 125 | 108 | 420 | 255 |
|---|
| CAPEX/Revenue, % | 2.50% | 5.36% | 2.91% | 5.90% | 2.52% |
|---|
| Debt | 455 | 277 | 216 | 8 | 9 |
|---|
| Cash | 199 | 45 | 96 | 143 | 67 |
|---|
| Net Debt/EBITDA | 0.7x | 0.4x | 0.2x | -0.1x | -0.0x |
|---|
| |
| ROIC, % | 18.1% | 21.0% | 27.5% | 41.1% | 46.8% |
|---|
| ROE, % | 21.1% | 25.0% | 27.0% | 43.7% | 48.6% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin surged on 2.30 pp from 19.6% to 21.9% in FY2014. In the last 3 years EBITDA margin decreased slightly on 1.10 pp from 23% in FY2011 to 21.9% in FY2014.
Kaveri Seed Company shows attractive ROIC at 46.8% for the last 12 months which assumes stable development model. During the last three years it surged - it was 21.0% in FY2011. It's average level of ROIC for the last three years was 38.5%.
Kaveri Seed Company showed fast Net Income margin growth of 2.70 pp from 18% to 20.7% in FY2014. In the last 3 years the company showed fast Net Income margin growth of 2.50 pp from 18.2% in FY2011 to 20.7% in FY2014.
Kaveri Seed Company operates at ROE of 48.6%. It's average ROE for the last three years was 39.7%.
Capital expenditures (CAPEX)
In FY2014 Kaveri Seed Company had CAPEX/Revenue of 2.52%. CAPEX/Revenue dropped on 2.83 pp from 5.36% in FY2011 to 2.52% in FY2014. It's average level of CAPEX/Revenue for the last three years was 3.78%.
Leverage (Debt)
Kaveri Seed Company has negative net debt at -0.0x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage dropped on 0.46x from 0.43x in FY2011 to -0.03x in FY2014.
Valuation vs. comparable companies
The company trades at 20.0x EV/EBITDA which is not surprisingly 24.8% higher than 16.0x Other Agricultural Products industry avearge calculated based on 82 companies. At the end of trading day today Kaveri Seed Company traded at 21.2x P/E which is 81.5% higher than 11.7x Other Agricultural Products peer group avearge calculated on the basis of 7 companies.
Peers in Other Agricultural Products
Below we provide Kaveri Seed Company benchmarking against other companies in Other Agricultural 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 |
|---|
| Unique Organics ($UNIQUEO) | | -74.0% | 102.1% | 35.2% | 51.2% |
| Kohinoor Foods ($KOHINOOR) | | -34.9% | 5.4% | 13.4% | 16.2% |
| Agro Tech Foods ($ATFL) | | -19.1% | -2.3% | 12.1% | -3.2% |
| Vikas Granaries ($VIKASGRAN) | | -61.7% | -13.9% | 88.0% | -34.7% |
| |
|---|
| Median (4 companies) | | -48.3% | 1.5% | 24.3% | 6.5% |
|---|
| Kaveri Seed Company ($KSCL) | | -82.8% | 59.4% | 91.2% | 42.0% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Indrayani Biotech ($INDRANIB) | | | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Kohinoor Foods ($KOHINOOR) | 6.8% | 12.7% | 4.7% | 10.9% | 11.2% |
| Vikas Granaries ($VIKASGRAN) | 11.9% | 30.4% | 10.6% | 14.2% | 9.8% |
| Agro Tech Foods ($ATFL) | 2.9% | 3.9% | 7.6% | 8.3% | 9.2% |
| Unique Organics ($UNIQUEO) | 0.3% | -2.4% | -1.0% | 2.2% | 2.2% |
| |
|---|
| Median (4 companies) | 8.7% | 8.3% | 6.2% | 9.6% | 9.5% |
|---|
| Kaveri Seed Company ($KSCL) | 2.6% | 23.0% | 20.7% | 19.6% | 21.9% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Agro Tech Foods ($ATFL) | 1.9% | 4.2% | 4.1% | 6.0% | 6.3% |
| Kohinoor Foods ($KOHINOOR) | 1.1% | 3.7% | 1.6% | 1.5% | 1.0% |
| |
|---|
| Median (2 companies) | 1.1% | 4.2% | 2.8% | 3.8% | 3.6% |
|---|
| Kaveri Seed Company ($KSCL) | 2.5% | 5.4% | 2.9% | 5.9% | 2.5% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Agro Tech Foods ($ATFL) | 15.6% | 13.7% | 24.0% | 25.3% | 21.2% |
| Kohinoor Foods ($KOHINOOR) | 10.6% | 11.2% | 3.1% | 8.8% | 10.3% |
| Indrayani Biotech ($INDRANIB) | | | 0.0% | 0.0% | 0.0% |
| Flex Foods ($FLEXFO) | 7.9% | 9.9% | 12.6% | 8.9% | |
| Himalya International ($HIMIN) | 12.5% | 12.8% | 9.4% | 10.2% | |
| |
|---|
| Median (7 companies) | 11.6% | 12.8% | 6.6% | 8.9% | 10.3% |
|---|
| Kaveri Seed Company ($KSCL) | 18.1% | 21.0% | 27.5% | 41.1% | 46.8% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Kohinoor Foods ($KOHINOOR) | 6.9x | 7.7x | 19.2x | 7.8x | 6.1x |
| Agro Tech Foods ($ATFL) | -0.3x | -1.6x | -0.8x | -0.2x | 0.1x |
| Flex Foods ($FLEXFO) | 1.5x | 0.8x | 0.8x | 0.9x | 0.0x |
| Himalya International ($HIMIN) | 2.0x | 3.3x | 4.5x | 2.9x | 0.0x |
| Vikas Granaries ($VIKASGRAN) | 2.9x | 3.0x | 9.1x | 4.2x | 0.0x |
| |
|---|
| Median (6 companies) | 1.7x | 3.0x | 4.5x | 1.9x | 0.0x |
|---|
| Kaveri Seed Company ($KSCL) | 0.7x | 0.4x | 0.2x | -0.1x | -0.0x |
