Asian Star Co Net Debt / EBITDA dropped on 1.1x from 5.9x to 4.8x in 2015 and Revenue decreased slightly on 0.89%
18-05-2015 • About Asian Star Co (
$ASTAR) • By InTwits
Asian Star Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.5% in FY2015 vs. 4.1% in FY2014 vs. 4.7% in FY2011
- Asian Star Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is 4.8x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asian Star Co ($ASTAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,673 | 18,354 | 24,622 | 32,502 | 32,213 | -0.9% |
| EBITDA | 778 | 803 | 941 | 1,336 | 1,459 | 9.2% |
| Net Income | 378 | 414 | 478 | 780 | 820 | 5.1% |
Balance Sheet
|
|---|
| Cash | 257 | 890 | 1,540 | 2,161 | 2,111 | -2.3% |
| Short Term Debt | 5,925 | 6,020 | 7,782 | 9,439 | 8,583 | -9.1% |
| Long Term Debt | 701 | 548 | 439 | 582 | 468 | -19.5% |
Cash flow
|
|---|
| Capex | 143 | 83 | 249 | 302 | 217 | -28.1% |
Ratios
|
|---|
| Revenue growth | -57.3% | 10.1% | 34.2% | 32.0% | -0.9% | |
| EBITDA growth | 7.9% | 3.3% | 17.1% | 42.0% | 9.2% | |
| EBITDA Margin | 4.7% | 4.4% | 3.8% | 4.1% | 4.5% | 0.4% |
| Net Income Margin | 2.3% | 2.3% | 1.9% | 2.4% | 2.5% | 0.1% |
| CAPEX, % of revenue | 0.9% | 0.5% | 1.0% | 0.9% | 0.7% | -0.3% |
| ROIC | 6.9% | 6.6% | 6.9% | 8.5% | 8.2% | -0.3% |
| ROE | 10.3% | 10.2% | 10.6% | 15.3% | 13.9% | -1.4% |
| Net Debt/EBITDA | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x | -1.1x |
Revenue and profitability
The company's Revenue decreased slightly on 0.89% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Asian Star Co's CAPEX/Revenue was 0.67% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.87%.
Return on investment
The company operates at good ROE (13.91%) while ROIC is low (8.18%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.4 pp from 15.3% to 13.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.8x and Debt / EBITDA is 6.2x. Net Debt / EBITDA dropped on 1.1x from 5.9x to 4.8x in FY2015. Debt decreased on 9.7% in FY2015 while cash decreased on 2.3% in FY2015.
Valuation
The company's trades at EV/EBITDA 15.6x and P/E 19.3x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Asian Star Co benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Page Industries ($PAGEIND) | -73.3% | 39.0% | 26.3% | 37.5% | |
| Bhartiya International ($BIL) | -71.6% | 28.4% | 20.9% | 36.7% | |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -23.9% | 10.4% | 19.1% | 14.1% | -7.7% |
|---|
| Asian Star Co ($ASTAR) | | 10.1% | 34.2% | 32.0% | -0.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 11.0% | 9.3% | 8.8% | 10.8% | |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | |
| Tara Jewels ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| |
|---|
| Median (18 companies) | 8.7% | 7.6% | 6.1% | 6.1% | 4.9% |
|---|
| Asian Star Co ($ASTAR) | 4.7% | 4.4% | 3.8% | 4.1% | 4.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | |
| |
|---|
| Median (14 companies) | 1.9% | 1.8% | 1.7% | 1.2% | 0.7% |
|---|
| Asian Star Co ($ASTAR) | 0.9% | 0.5% | 1.0% | 0.9% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | |
| Oscar Global ($OSCARGLO) | | | 12.6% | 52.3% | |
| Virat Industries ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | |
| |
|---|
| Median (40 companies) | 10.4% | 10.1% | 7.2% | 11.0% | 7.3% |
|---|
| Asian Star Co ($ASTAR) | 6.9% | 6.6% | 6.9% | 8.5% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Tribhovandas Bhimji Zaveri ($TBZ) | 2.4x | 1.6x | 2.7x | 4.1x | 6.6x |
| |
|---|
| Median (24 companies) | 2.7x | 2.2x | 2.7x | 0.0x | 0.0x |
|---|
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
