Shivam Autotech reports 189% CAPEX growth and 14.7% Revenue growth
18-05-2015 • About Shivam Autotech (
$SHIVAMAUTO) • By InTwits
Shivam Autotech reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shivam Autotech has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 555 in FY2015, 192 in FY2014, 150 in FY2013, 409 in FY2012, 304 in FY2011
- The company has highly profitable business model: ROIC is at 16.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shivam Autotech ($SHIVAMAUTO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,634 | 3,525 | 3,629 | 3,888 | 4,458 | 14.7% |
| EBITDA | 611 | 850 | 876 | 802 | 833 | 3.9% |
| Net Income | 148 | 186 | 282 | 284 | 281 | -1.0% |
Balance Sheet
|
|---|
| Cash | 22 | 3 | 4 | 2 | 59 | 2,623.2% |
| Short Term Debt | 1,037 | 1,106 | 844 | 874 | 853 | -2.4% |
| Long Term Debt | 897 | 618 | 437 | 297 | 1,033 | 247.8% |
Cash flow
|
|---|
| Capex | 304 | 409 | 150 | 192 | 555 | 189.4% |
Ratios
|
|---|
| Revenue growth | -51.6% | 33.8% | 2.9% | 7.1% | 14.7% | |
| EBITDA growth | 31.6% | 39.1% | 3.0% | -8.4% | 3.9% | |
| EBITDA Margin | 23.2% | 24.1% | 24.1% | 20.6% | 18.7% | -1.9% |
| Net Income Margin | 5.6% | 5.3% | 7.8% | 7.3% | 6.3% | -1.0% |
| CAPEX, % of revenue | 11.6% | 11.6% | 4.1% | 4.9% | 12.5% | 7.5% |
| ROIC | 13.3% | 18.6% | 19.7% | 17.4% | 16.6% | -0.7% |
| ROE | 16.0% | 17.5% | 22.4% | 19.0% | 16.4% | -2.6% |
| Net Debt/EBITDA | 3.1x | 2.0x | 1.5x | 1.5x | 2.2x | 0.7x |
Revenue and profitability
The company's Revenue jumped on 14.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from -6.9% to -5.8% in FY2015.
Net Income marign decreased slightly on 1.0 pp from 7.3% to 6.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Shivam Autotech's CAPEX/Revenue was 12.5% in FY2015. Shivam Autotech showed small growth in CAPEX/Revenue of 0.86 pp from 11.6% in FY2012 to 12.5% in FY2015. It's average CAPEX/Revenue for the last three years was 7.2%.To maintain this fast growth Shivam Autotech invested a large share of EBITDA (66.6%) to CAPEX.
Return on investment
The company operates at good ROIC (16.64%) and ROE (16.42%). ROIC decreased slightly on 0.74 pp from 17.4% to 16.6% in FY2015. ROE decreased on 2.6 pp from 19.0% to 16.4% in FY2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.7x from 1.5x to 2.2x in FY2015. Debt surged on 61.1% in FY2015 while cash surged on 2,623% in FY2015.
Valuation
Shivam Autotech's trades at EV/EBITDA 9.9x and P/E 22.9x while industy averages are 10.5x and 26.1x. Shivam Autotech's EV/(EBITDA-CAPEX) is 29.7x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Shivam Autotech benchmarking vs. other companies in Auto Parts & Equipment 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 |
|---|
| Exide Industries ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | | 79.1% | 71.3% | 20.2% | 14.0% |
| Fiem Industries ($FIEMIND) | -54.4% | 25.2% | 13.4% | 18.7% | |
| Suprajit Engineering ($SUPRAJIT) | -53.1% | 22.2% | 9.4% | 17.9% | |
| Amara Raja Batteries ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.6% | 16.9% | 2.4% | 4.9% | 7.0% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | | 33.8% | 2.9% | 7.1% | 14.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 33.7% | 18.4% | 24.4% | 28.3% | 30.0% |
| Shanthi Gears ($SHANTIGEAR) | 44.6% | 37.9% | 30.2% | 27.8% | 12.0% |
| Amtek Auto ($AMTEKAUTO) | | 25.1% | | 20.7% | 14.8% |
| Suprajit Engineering ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| Banco Products (India) ($BANCOINDIA) | 12.9% | 12.2% | 11.6% | 14.4% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.1% | 12.0% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 23.2% | 24.1% | 24.1% | 20.6% | 18.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amtek Auto ($AMTEKAUTO) | | 18.9% | | 27.1% | 30.3% |
| Amara Raja Batteries ($AMARAJABAT) | 2.9% | 3.7% | 2.5% | 10.9% | |
| Subros ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% |
| Lumax Auto Technologies ($LUMAXTECH) | 3.7% | 5.1% | 7.3% | 7.8% | |
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 7.6% | 5.6% | 4.7% | 5.1% | 5.3% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 11.6% | 4.1% | 4.9% | 12.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 30.5% | 32.1% | 34.5% | 30.3% | |
| Exide Industries ($EXIDEIND) | 34.2% | 24.2% | 24.3% | 29.5% | 26.9% |
| Suprajit Engineering ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | |
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 16.5% | 15.7% | 11.8% | 12.7% | 12.3% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 13.3% | 18.6% | 19.7% | 17.4% | 16.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x |
| Autoline Industries ($AUTOIND) | 3.1x | 3.2x | 4.0x | 12.0x | |
| Reil Electricals India ($REILELEC) | -0.1x | -0.0x | 1.5x | 9.1x | |
| Steel Strips Wheels ($SSWL) | 4.6x | 5.4x | 6.3x | 6.5x | 5.6x |
| Automotive Stampings & Assemblies ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 2.2x | 0.7x | 1.9x |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 3.1x | 2.0x | 1.5x | 1.5x | 2.2x |
