Camlin Fine Sciences reports 91.6% Net Income growth and 4.0 pp EBITDA Margin growth from 12.8% to 16.7%
12-05-2015 • About Camlin Fine Sciences (
$CAMLINFIN) • By InTwits
Camlin Fine Sciences reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Camlin Fine Sciences has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 282 in FY2015, 363 in FY2014, 212 in FY2013, 144 in FY2012, 129 in FY2011
- The company has highly profitable business model: ROIC is at 29.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Camlin Fine Sciences ($CAMLINFIN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,717 | 3,352 | 3,736 | 5,087 | 5,583 | 9.8% |
| EBITDA | 156 | 304 | 478 | 649 | 934 | 43.8% |
| Net Income | 71 | 38 | 151 | 287 | 550 | 91.6% |
Balance Sheet
|
|---|
| Cash | 96 | 42 | 163 | 45 | 90 | 99.9% |
| Short Term Debt | 282 | 918 | 880 | 1,141 | 1,210 | 6.0% |
| Long Term Debt | 400 | 330 | 377 | 285 | 281 | -1.6% |
Cash flow
|
|---|
| Capex | 129 | 144 | 212 | 363 | 282 | -22.1% |
Ratios
|
|---|
| Revenue growth | -75.1% | 95.3% | 11.4% | 36.1% | 9.8% | |
| EBITDA growth | 22.1% | 95.3% | 57.3% | 35.7% | 43.8% | |
| EBITDA Margin | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% | 4.0% |
| Net Income Margin | 4.1% | 1.1% | 4.0% | 5.6% | 9.9% | 4.2% |
| CAPEX, % of revenue | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% | -2.1% |
| ROIC | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% | 5.2% |
| ROE | 18.8% | 7.6% | 25.5% | 36.2% | 48.2% | 12.0% |
| Net Debt/EBITDA | 3.8x | 4.0x | 2.3x | 2.1x | 1.5x | -0.6x |
Revenue and profitability
The company's Revenue increased on 9.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.1 pp from 5.4% to -15.7% in FY2015.
Net Income marign increased on 4.2 pp from 5.6% to 9.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.1% in FY2015. The company showed small growth in CAPEX/Revenue of 0.77 pp from 4.3% in FY2012 to 5.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.0%.
Return on investment
The company operates at high and attractive ROIC (29.46%) and ROE (48.23%). ROIC increased on 5.2 pp from 24.2% to 29.5% in FY2015. ROE jumped on 12.0 pp from 36.2% to 48.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.6x from 2.1x to 1.5x in FY2015. Debt increased on 4.4% in FY2015 while cash jumped on 99.9% in FY2015.
Valuation
The company's trades at EV/EBITDA 10.2x and P/E 14.8x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 14.6x with the industry average at 4.7x.
Management team
Camlin Fine Sciences's CEO Ashish Subhash Dandekar has spent 11 years at the company.
Appendix 1: 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dai-Ichi Karkaria ($DAICHI) | | 20.7% | 31.4% | 45.4% | 22.8% |
| Dynemic Products ($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 ($KIRIINDUS) | 244.4% | 7.9% | -86.5% | 24.8% | |
| |
|---|
| Median (27 companies) | -50.1% | 19.8% | 14.1% | 11.3% | 10.2% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | | 95.3% | 11.4% | 36.1% | 9.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.7% | 21.8% | 22.7% | |
| Adi Finechem ($ADIFINCHM) | 18.2% | 15.1% | 14.0% | 22.1% | 16.5% |
| Solar Industries India ($SOLARINDS) | 18.1% | 18.5% | 17.5% | 17.9% | |
| Ultramarine & Pigments ($ULTRAMAR) | 20.1% | 18.0% | 15.5% | 17.4% | |
| Anil ($ANILLTD) | 17.4% | 18.1% | 16.9% | 17.1% | |
| |
|---|
| Median (25 companies) | 11.7% | 10.7% | 11.2% | 10.6% | 13.0% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adi Finechem ($ADIFINCHM) | 8.2% | 7.3% | 4.8% | 12.6% | 16.9% |
| Solar Industries India ($SOLARINDS) | 14.2% | 13.0% | 9.9% | 12.3% | |
| Nitta Gelatin India ($NITTAGELA) | 21.3% | 8.8% | 4.6% | 8.5% | |
| Meghmani Organics ($MEGH) | 9.9% | 10.2% | 10.3% | 7.9% | |
| Kiri Industries ($KIRIINDUS) | 5.3% | 5.4% | 4.5% | 5.6% | |
| |
|---|
| Median (18 companies) | 7.0% | 5.2% | 4.5% | 4.3% | 1.6% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adi Finechem ($ADIFINCHM) | 27.6% | 30.6% | 29.8% | 46.4% | 26.3% |
| Vinati Organics ($VINATIORGA) | 31.4% | 29.6% | 26.2% | 30.6% | |
| Pidilite Industries ($PIDILITIND) | 29.3% | 27.4% | 29.3% | 29.8% | |
| Plastiblends India ($PLASTIBLEN) | 19.4% | 18.3% | 15.8% | 24.0% | |
| Keltech Energies ($KELENRG) | 11.5% | 15.3% | 12.8% | 23.0% | |
| |
|---|
| Median (35 companies) | 15.5% | 15.3% | 14.8% | 11.2% | 21.7% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cochin Minerals & Rutile ($COCHINM) | 0.7x | -0.0x | -0.0x | 32.3x | |
| Alkali Metals ($ALKALI) | 4.3x | | 5.1x | 11.6x | 0.0x |
| Kiri Industries ($KIRIINDUS) | 3.9x | 8.2x | 31.3x | 10.6x | |
| Vikas Globalone ($VIKASGLOB) | 0.0x | 2.5x | 4.4x | 4.9x | |
| Jayant Agro-Organics ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.0x |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 3.8x | 4.0x | 2.3x | 2.1x | 1.5x |
