Jayant Agro-Organics Debt dropped on 37.4% in 2015 while Revenue increased slightly on 1.2%
13-05-2015 • About Jayant Agro-Organics (
$JAYAGROGN) • By InTwits
Jayant Agro-Organics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jayant Agro-Organics has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 10.0%.
- CAPEX is quite volatile: 143 in FY2015, 142 in FY2014, 376 in FY2013, 581 in FY2012, 145 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.7%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jayant Agro-Organics ($JAYAGROGN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,908 | 18,322 | 16,210 | 15,378 | 15,561 | 1.2% |
| EBITDA | 640 | 878 | 954 | 779 | 334 | -57.1% |
| Net Income | 249 | 314 | 362 | 406 | 105 | -74.1% |
Balance Sheet
|
|---|
| Cash | 117 | 154 | 88 | 211 | 224 | 6.3% |
| Short Term Debt | 2,138 | 2,119 | 2,587 | 3,455 | 2,218 | -35.8% |
| Long Term Debt | 496 | 506 | 484 | 351 | 163 | -53.4% |
Cash flow
|
|---|
| Capex | 145 | 581 | 376 | 142 | 143 | 0.9% |
Ratios
|
|---|
| Revenue growth | -36.6% | 53.9% | -11.5% | -5.1% | 1.2% | |
| EBITDA growth | 56.8% | 37.3% | 8.7% | -18.3% | -57.1% | |
| EBITDA Margin | 5.4% | 4.8% | 5.9% | 5.1% | 2.1% | -2.9% |
| Net Income Margin | 2.1% | 1.7% | 2.2% | 2.6% | 0.7% | -2.0% |
| CAPEX, % of revenue | 1.2% | 3.2% | 2.3% | 0.9% | 0.9% | -0.0% |
| ROIC | 15.5% | 19.1% | 17.5% | 11.1% | 3.7% | -7.3% |
| ROE | 23.5% | 23.8% | 22.6% | 20.6% | 4.8% | -15.8% |
| Net Debt/EBITDA | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x | 1.8x |
Revenue and profitability
Jayant Agro-Organics's Revenue increased slightly on 1.2% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.9 pp from 5.1% to 2.1% in FY2015.
Net Income marign decreased slightly on 2.0 pp from 2.6% to 0.68% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.92% in FY2015. The company showed decline in CAPEX/Revenue of 2.3 pp from 3.2% in FY2012 to 0.92% in FY2015. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at low ROIC (3.74%) and ROE (4.78%). ROIC decreased on 7.3 pp from 11.1% to 3.7% in FY2015. ROE dropped on 15.8 pp from 20.6% to 4.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.5x and Debt / EBITDA is 7.1x. Net Debt / EBITDA surged on 1.8x from 4.6x to 6.5x in FY2015. Debt dropped on 37.4% in FY2015 while cash increased on 6.3% in FY2015.
Valuation
Jayant Agro-Organics's trades at EV/EBITDA 11.0x and P/E 14.4x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 19.2x with the industry average at 4.7x.
Appendix 1: Peers in Specialty Chemicals
Below we provide Jayant Agro-Organics 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, %
| 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% | |
| Camlin Fine Sciences ($CAMLINFIN) | | 95.3% | 11.4% | 36.1% | 9.8% |
| Sudarshan Chemical Industries ($SUDARSCHEM) | -49.4% | 10.5% | 9.1% | 28.2% | |
| Vinati Organics ($VINATIORGA) | -63.9% | 38.7% | 23.6% | 25.9% | |
| |
|---|
| Median (27 companies) | -50.1% | 19.8% | 14.1% | 13.7% | 9.8% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | | 53.9% | -11.5% | -5.1% | 1.2% |
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 ($ANILLTD) | 17.4% | 18.1% | 16.9% | 17.1% | |
| |
|---|
| Median (25 companies) | 11.7% | 10.7% | 12.8% | 10.6% | 13.8% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 5.4% | 4.8% | 5.9% | 5.1% | 2.1% |
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% | |
| Camlin Fine Sciences ($CAMLINFIN) | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% |
| |
|---|
| Median (18 companies) | 7.3% | 5.2% | 4.7% | 4.5% | 3.3% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 1.2% | 3.2% | 2.3% | 0.9% | 0.9% |
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 ($PIDILITIND) | 29.3% | 27.4% | 29.3% | 29.8% | |
| Camlin Fine Sciences ($CAMLINFIN) | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% |
| Plastiblends India ($PLASTIBLEN) | 19.4% | 18.3% | 15.8% | 24.0% | |
| |
|---|
| Median (35 companies) | 14.8% | 14.7% | 14.8% | 12.3% | 26.3% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 15.5% | 19.1% | 17.5% | 11.1% | 3.7% |
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 | |
| Meghmani Organics ($MEGH) | 4.8x | 4.2x | 3.7x | 4.3x | |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.6x |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
