Shaily Engineering Plastics Net Income surged on 97.5% in 2015 while EBITDA Margin decreased slightly on 1.3 pp from 16.0% to 14.8%
18-05-2015 • About Shaily Engineering Plastics (
$SHAILY) • By InTwits
Shaily Engineering Plastics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has highly profitable business model: ROIC is at 15.2%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shaily Engineering Plastics ($SHAILY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,267 | 1,456 | 1,223 | 1,508 | 1,797 | 19.2% |
| EBITDA | 146 | 209 | 170 | 242 | 265 | 9.6% |
| Net Income | 38 | 64 | 36 | 66 | 130 | 97.5% |
Balance Sheet
|
|---|
| Cash | 8 | 4 | 66 | 192 | 15 | -92.4% |
| Short Term Debt | 330 | 324 | 228 | 277 | 369 | 33.5% |
| Long Term Debt | 253 | 80 | 151 | 382 | 327 | -14.2% |
Cash flow
|
|---|
| Capex | 24 | 54 | | 162 | 309 | 90.5% |
Ratios
|
|---|
| Revenue growth | -37.7% | 14.9% | -16.0% | 23.3% | 19.2% | |
| EBITDA growth | 20.2% | 43.5% | -18.7% | 42.6% | 9.6% | |
| EBITDA Margin | 11.5% | 14.3% | 13.9% | 16.0% | 14.8% | -1.3% |
| Net Income Margin | 3.0% | 4.4% | 3.0% | 4.4% | 7.2% | 2.9% |
| CAPEX, % of revenue | 1.9% | 3.7% | | 10.7% | 17.2% | 6.4% |
| ROIC | 12.1% | 19.5% | 15.0% | 19.3% | 15.2% | -4.1% |
| ROE | 11.1% | 21.5% | 10.6% | 16.8% | 21.5% | 4.8% |
| Net Debt/EBITDA | 4.0x | 1.9x | 1.8x | 1.9x | 2.6x | 0.6x |
Revenue and profitability
Shaily Engineering Plastics's Revenue jumped on 19.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 3.8% to 5.6% in FY2015.
Net Income marign increased on 2.9 pp from 4.4% to 7.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Shaily Engineering Plastics's CAPEX/Revenue was 17.2% in FY2015. CAPEX/Revenue jumped on 13.5 pp from 3.7% in FY2012 to 17.2% in FY2015.To fuel this fast growth Shaily Engineering Plastics made large investments to CAPEX (116% of EBITDA).
Return on investment
The company operates at high and attractive ROE (21.53%) while ROIC is a bit lower (15.17%). ROIC decreased on 4.1 pp from 19.3% to 15.2% in FY2015. ROE increased on 4.8 pp from 16.8% to 21.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 2.6x. Net Debt / EBITDA surged on 0.6x from 1.9x to 2.6x in FY2015. Debt increased on 5.9% in FY2015 while cash dropped on 92.4% in FY2015.
Valuation
Shaily Engineering Plastics's trades at EV/EBITDA 13.1x and P/E 21.4x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Plastic Products
Below we provide Shaily Engineering Plastics benchmarking against other companies in Plastic 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Acrysil ($ACRYSIL) | -62.7% | 11.3% | 29.6% | 33.8% | |
| Astral Poly Technik ($ASTRAL) | 41.6% | 41.7% | 41.6% | 30.8% | |
| Wim Plast ($WIMPLAST) | -63.9% | 27.5% | 23.1% | 19.5% | |
| Jain Irrigation Systems ($JISLJALEQS) | | 20.9% | 2.1% | 16.1% | 5.6% |
| Responsive Industries ($RESPONIND) | -52.3% | 42.7% | 29.4% | 15.5% | |
| |
|---|
| Median (11 companies) | -51.4% | 18.2% | 24.4% | 12.6% | 5.6% |
|---|
| Shaily Engineering Plastics ($SHAILY) | | 14.9% | -16.0% | 23.3% | 19.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wim Plast ($WIMPLAST) | 18.5% | 18.1% | 17.9% | 18.1% | |
| Acrysil ($ACRYSIL) | 19.2% | 12.4% | 16.8% | 17.5% | |
| Astral Poly Technik ($ASTRAL) | 13.5% | 14.2% | 14.2% | 14.8% | |
| Jain Irrigation Systems ($JISLJALEQS) | 18.6% | 16.6% | 12.6% | 12.6% | 12.4% |
| Flexituff International ($FLEXITUFF) | 13.1% | 15.1% | 13.5% | 11.1% | |
| |
|---|
| Median (9 companies) | 12.0% | 11.7% | 11.2% | 11.1% | 12.4% |
|---|
| Shaily Engineering Plastics ($SHAILY) | 11.5% | 14.3% | 13.9% | 16.0% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Flexituff International ($FLEXITUFF) | 11.0% | 10.8% | 10.3% | 15.7% | |
| Acrysil ($ACRYSIL) | 21.2% | 7.8% | 11.0% | 9.6% | |
| Astral Poly Technik ($ASTRAL) | 9.3% | 11.9% | 8.4% | 8.6% | |
| Responsive Industries ($RESPONIND) | 18.7% | 14.7% | 10.3% | 6.9% | |
| Jain Irrigation Systems ($JISLJALEQS) | 12.2% | 10.9% | 6.0% | 5.7% | 3.6% |
| |
|---|
| Median (7 companies) | 9.1% | 10.8% | 8.2% | 6.9% | 3.6% |
|---|
| Shaily Engineering Plastics ($SHAILY) | 1.9% | 3.7% | | 10.7% | 17.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Astral Poly Technik ($ASTRAL) | 22.6% | 29.3% | 31.1% | 33.3% | |
| Wim Plast ($WIMPLAST) | 31.0% | 31.8% | 31.2% | 31.0% | |
| Acrysil ($ACRYSIL) | | 7.7% | 16.2% | 20.2% | |
| Flexituff International ($FLEXITUFF) | 14.7% | 18.6% | 15.9% | 11.0% | |
| Jain Irrigation Systems ($JISLJALEQS) | 15.0% | 13.4% | 8.3% | 9.0% | 8.6% |
| |
|---|
| Median (21 companies) | 12.8% | 10.0% | 10.9% | 11.0% | 8.6% |
|---|
| Shaily Engineering Plastics ($SHAILY) | 12.1% | 19.5% | 15.0% | 19.3% | 15.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jain Irrigation Systems ($JISLJALEQS) | 3.4x | 3.8x | 5.1x | 4.8x | 4.8x |
| Flexituff International ($FLEXITUFF) | 3.5x | 2.2x | 3.1x | 4.3x | |
| Responsive Industries ($RESPONIND) | 1.9x | 3.3x | 2.9x | 2.4x | |
| Acrysil ($ACRYSIL) | 1.9x | 2.9x | 2.2x | 2.0x | |
| Astral Poly Technik ($ASTRAL) | 0.4x | 1.0x | 0.7x | 0.9x | |
| |
|---|
| Median (12 companies) | 2.2x | 2.2x | 2.3x | 0.4x | 4.8x |
|---|
| Shaily Engineering Plastics ($SHAILY) | 4.0x | 1.9x | 1.8x | 1.9x | 2.6x |
