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Ptl Enterprises demonstrated healthy growth over the last few years

19-05-2015 • About Ptl Enterprises ($PTL) • By InTwits

Ptl Enterprises is an attractive growth stock in Comm.Trading & Distribution industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Ptl Enterprises showed growth in the last financial year. The company's revenue surged on 35.1% in FY2015. EBITDA also increased considerably: 15.9% for the same period.

If we look for the longer period Ptl Enterprises showed fast revenue growth of 21.4% from FY2012 to FY2015 annually. EBITDA surged on 7.64% from FY2012 to FY2015 annually.

Ptl Enterprises ($PTL) financials for the last 5 years

mln. INR FY2011 FY2012 FY2013 FY2014 FY2015
Revenue1,9432,2912,5803,0384,104
Revenue growth, %17.9%12.6%17.7%35.1%
SG&A, %
EBITDA535609585655760
EBITDA growth, %13.7%-4.0%12.0%15.9%
EBITDA margin, %27.6%26.6%22.7%21.6%18.5%
Net Income159175171243335
Net Income margin, % 8.20%7.62%6.63%7.99%8.17%
 
CAPEX2011311573171
CAPEX/Revenue, %1.04%4.95%4.47%2.41%4.16%
Debt2,0891,4291,2481,5041,148
Cash1115977218270
Net Debt/EBITDA3.7x2.2x2.0x2.0x1.2x
 
ROIC, %18.1%18.5%19.5%21.1%22.1%
ROE, %28.5%17.3%15.5%19.7%23.2%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. In the longer period the company showed big decline in EBITDA margin of 8.10 pp from 26.6% in FY2012 to 18.5% in FY2015.

We call Ptl Enterprises an attractive growth stock as together with the growth it delivers high ROIC at 22.1%. During the last three years it surged - it was 18.5% in FY2012. Average ROIC for the last three years was 20.9%.

The company's Net Income margin increased slightly on 0.200 pp from 8% to 8.20% in FY2015. If we look for the longer period Ptl Enterprises showed Net Income margin growth of 0.600 pp from 7.60% in FY2012 to 8.20% in FY2015.

Ptl Enterprises operates at ROE of 23.2%. It's average level of ROE for the last three years was 19.5%.

Capital expenditures (CAPEX)


In FY2015 the company had CAPEX/Revenue of 4.16%. Ptl Enterprises's CAPEX/Revenue dropped on 0.792 pp from 4.95% in FY2012 to 4.16% in FY2015. It's average CAPEX/Revenue for the last three years was 3.68%.

Leverage (Debt)


The company has medium debt level at 1.2x Net Debt/EBITDA to maintain high growth. In the last 3 years Ptl Enterprises showed big decline in leverage of 1.09x from 2.25x in FY2012 to 1.16x in FY2015.

Valuation vs. comparable companies


The company trades at 4.7x EV/EBITDA which is 66.5% lower than 13.9x Comm.Trading & Distribution industry avearge calculated based on 330 companies. The company trades at 7.9x P/E which is 95.8% lower than 189.1x Comm.Trading & Distribution industry avearge calculated based on 10 companies.

For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Ptl Enterprises traded at 6.0x EV/(EBITDA-CAPEX) which is 235% higher than 1.8x Comm.Trading & Distribution peer group avearge calculated on the basis of 2 companies.

Peers in Comm.Trading & Distribution


Below we provide Ptl Enterprises benchmarking against other companies in Comm.Trading & Distribution 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, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Risa International ($RISAINTL)285.4%4,724.7%
Shri Krishna Prasadam ($SKP)69.6%57.3%1,074.7%
Parker Agrochem Exports ($PARKERAC)-87.9%-77.2%1,542.3%39.1%
Ennore Coke ($ENNORE)62.1%-5.0%-45.5%34.0%
Gagan Polycot India ($GAGANPO)-23.2%-59.4%76.3%18.2%
 
Median (18 companies)-32.8%4.1%13.4%12.5%
Ptl Enterprises ($PTL)17.9%12.6%17.7%35.1%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Maxwell Industries ($MAXWELL)6.7%9.9%6.7%9.0%
Cravatex ($CRAVATEX)12.7%5.8%7.4%7.0%
Kothari Products ($KOTHARIPRO)3.3%5.4%4.4%5.9%
Risa International ($RISAINTL)-2.3%3.3%
Redington (India) ($REDINGTON)2.6%2.9%2.7%2.5%
 
Median (13 companies)2.4%2.7%2.7%1.8%19.5%
Ptl Enterprises ($PTL)27.6%26.6%22.7%21.6%18.5%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Maxwell Industries ($MAXWELL)1.2%0.9%1.9%2.4%
Redington (India) ($REDINGTON)0.3%0.2%0.7%0.2%
Kothari Products ($KOTHARIPRO)0.9%2.5%0.1%0.2%
Mmtc ($MMTC)0.1%0.0%0.1%0.1%
Risa International ($RISAINTL)0.0%0.0%
 
Median (5 companies)0.5%0.2%0.1%0.2%
Ptl Enterprises ($PTL)1.0%5.0%4.5%2.4%4.2%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Kothari Products ($KOTHARIPRO)7.4%23.4%20.0%28.3%
Redington (India) ($REDINGTON)15.5%17.2%16.0%16.3%
Risa International ($RISAINTL)-0.2%14.8%
Bombay Cycle & Motor Agency ($BOMBCYC)15.1%13.5%
Mmtc ($MMTC)1.0%0.7%1.6%9.7%
 
Median (51 companies)2.5%4.5%4.8%9.6%
Ptl Enterprises ($PTL)18.1%18.5%19.5%21.1%22.1%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Ph Capital ($PHCAP)18.4x
Unitech International ($UNITINT)5.1x
Vipul Dye Chem ($VIPULDYE)2.9x3.9x5.1x3.9x
Maxwell Industries ($MAXWELL)5.7x3.7x5.8x3.5x
Vadilal Enterprises ($VADILENT)1.3x2.3x4.0x2.3x
 
Median (27 companies)3.0x1.7x1.8x0.0x0.0x
Ptl Enterprises ($PTL)3.7x2.2x2.0x2.0x1.2x


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