Nitesh Estates Debt jumped on 24.2% in 2015 and EBITDA jumped on 12.9%
28-05-2015 • About Nitesh Estates (
$NITESHEST) • By InTwits
Nitesh Estates reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nitesh Estates is a company in decline: FY2015 revenue growth was -3.4%, 5 years revenue CAGR was -3.2%
- The company has business model with low profitability: ROIC is at 9.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nitesh Estates ($NITESHEST) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,241 | 1,162 | 829 | 2,976 | 2,875 | -3.4% |
| EBITDA | 68 | 5 | -478 | 590 | 666 | 12.9% |
| Net Income | 109 | 3 | -1,421 | 52 | 24 | -55.1% |
Balance Sheet
|
|---|
| Cash | 66 | 182 | 279 | 364 | 280 | -23.1% |
| Short Term Debt | 4 | 1,121 | 2,356 | 3,009 | 3,825 | 27.1% |
| Long Term Debt | 787 | 127 | 353 | 352 | 351 | -0.2% |
Cash flow
|
|---|
| Capex | 891 | | 329 | 2 | 81 | 3,768.2% |
Ratios
|
|---|
| Revenue growth | -63.3% | -6.3% | -28.7% | 259.1% | -3.4% | |
| EBITDA growth | | -93.0% | -10,232.3% | -223.3% | 12.9% | |
| EBITDA Margin | 5.5% | 0.4% | -57.7% | 19.8% | 23.2% | 3.3% |
| Net Income Margin | 8.8% | 0.3% | -171.4% | 1.8% | 0.8% | -0.9% |
| CAPEX, % of revenue | 71.8% | | 39.7% | 0.1% | 2.8% | 2.7% |
| ROIC | | -0.2% | -8.4% | 9.0% | 9.2% | 0.2% |
| ROE | | 0.1% | -36.2% | 1.6% | 0.7% | -0.9% |
| Net Debt/EBITDA | 10.7x | 225.8x | | 5.1x | 5.9x | 0.8x |
Revenue and profitability
The company's Revenue decreased on 3.4% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.3 pp from 19.8% to 23.2% in FY2015.
Net Income marign decreased slightly on 0.94 pp from 1.8% to 0.82% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Nitesh Estates's CAPEX/Revenue was 2.8% in FY2015. Nitesh Estates's CAPEX/Revenue increased2.8 pp from in FY2012 to 2.8% in FY2015. Average CAPEX/Revenue for the last three years was 14.2%.
Return on investment
The company operates at low ROIC (9.22%) and ROE (0.73%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.90 pp from 1.6% to 0.73% in FY2015.
Leverage (Debt)
Debt level is 5.9x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.8x from 5.1x to 5.9x in FY2015. Debt surged on 24.2% in FY2015 while cash dropped on 23.1% in FY2015.
Valuation
The company's trades at EV/EBITDA 9.2x and P/E 93.7x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Realty
Below you can find Nitesh Estates benchmarking vs. other companies in Realty 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 |
|---|
| Sunteck Realty ($SUNTECK) | | -16.0% | 77.7% | 2,963.6% | -67.3% |
| The Phoenix Mills ($PHOENIXLTD) | | 87.7% | 19.1% | 208.3% | 14.1% |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Lancor Holdings ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| Arihant Superstructures ($ASL) | | -36.5% | 9.1% | 42.0% | 7.8% |
| |
|---|
| Median (33 companies) | -23.4% | 0.6% | 5.6% | -4.5% | 13.2% |
|---|
| Nitesh Estates ($NITESHEST) | | -6.3% | -28.7% | 259.1% | -3.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | 78.9% |
| Tci Developers ($TCIDEVELOP) | | | | | 75.9% |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% |
| Sunteck Realty ($SUNTECK) | 33.7% | 32.8% | 18.1% | 30.3% | 44.2% |
| |
|---|
| Median (27 companies) | 24.3% | 20.1% | 18.1% | 20.1% | 25.3% |
|---|
| Nitesh Estates ($NITESHEST) | 5.5% | 0.4% | -57.7% | 19.8% | 23.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | 7.3% |
| |
|---|
| Median (23 companies) | 5.3% | 4.8% | 2.3% | 3.7% | 2.4% |
|---|
| Nitesh Estates ($NITESHEST) | 71.8% | | 39.7% | 0.1% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | 6.8% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
| |
|---|
| Median (50 companies) | 9.4% | 5.9% | 5.1% | 5.6% | 7.6% |
|---|
| Nitesh Estates ($NITESHEST) | | -0.2% | -8.4% | 9.0% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 4.8x | 4.9x | 4.0x |
|---|
| Nitesh Estates ($NITESHEST) | 10.7x | 225.8x | | 5.1x | 5.9x |
