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Bhartiya International demonstrated fast growth in recent years. Will the growth continue?

01-06-2015 • About Bhartiya International ($BIL) • By InTwits

Bhartiya International is an attractive growth stock in Other Apparels & Accessories industry. Its revenue performance, profitability and financial model stands it out vs. other public companies on the market.

Growth story


Bhartiya International showed growth in the last financial year. The company's revenue surged on 34.7% in FY2015. In addition to revenue Bhartiya International also keeps delivering EBITDA growth. It was 42.9% in FY2015

In the longer period the company showed fast revenue growth of 30.6% from FY2012 to FY2015 annually. EBITDA surged on 22.6% from FY2012 to FY2015 annually.

Bhartiya International ($BIL) financials for the last 5 years

mln. INR FY2011 FY2012 FY2013 FY2014 FY2015
Revenue1,9522,5073,0314,1445,581
Revenue growth, %28.4%20.9%36.7%34.7%
SG&A, %
EBITDA207287279370528
EBITDA growth, %38.6%-2.8%32.6%42.9%
EBITDA margin, %10.6%11.4%9.20%8.92%9.47%
Net Income64115101145210
Net Income margin, % 3.27%4.57%3.35%3.50%3.76%
 
CAPEX8811311774115
CAPEX/Revenue, %4.50%4.52%3.85%1.78%2.06%
Debt6607671,0381,7071,989
Cash96114154425356
Net Debt/EBITDA2.7x2.3x3.2x3.5x3.1x
 
ROIC, %10.4%13.0%10.6%11.2%12.8%
ROE, %5.7%9.2%7.4%9.7%12.6%

Profitability and return on investment


EBITDA growth was supported by margin expansion. Bhartiya International's EBITDA margin increased on 0.600 pp from 8.90% to 9.50% in FY2015. In the longer period EBITDA margin dropped on 1.90 pp from 11.4% in FY2012 to 9.50% in FY2015.

Bhartiya International shows attractive ROIC at 12.8% for the last 12 months which assumes stable development model. During the last three years it decreased slightly - it was 13.0% in FY2012. Average ROIC for the last three years was 11.6%.

The company's Net Income margin increased on 0.300 pp from 3.50% to 3.80% in FY2015. In the longer period the company's Net Income margin dropped on 0.800 pp from 4.60% in FY2012 to 3.80% in FY2015.

Bhartiya International operates at ROE of 12.6%. It's average level of ROE for the last three years was 9.91%.

Capital expenditures (CAPEX)


In FY2015 the company had CAPEX/Revenue of 2.06%. The company's CAPEX/Revenue dropped on 2.45 pp from 4.52% in FY2012 to 2.06% in FY2015. It's average CAPEX/Revenue for the last three years was 2.57%.

Leverage (Debt)


Bhartiya International has medium debt level at 3.1x Net Debt/EBITDA to maintain high growth. In the longer period the company's leverage surged on 0.81x from 2.28x in FY2012 to 3.09x in FY2015.

Valuation vs. comparable companies


The market closed today at 12.9x EV/EBITDA for Bhartiya International which is 7.51% lower than 13.9x Other Apparels & Accessories peer group avearge calculated on the basis of 133 companies. At the end of trading day today Bhartiya International traded at 24.6x P/E which is 16.9% lower than 29.6x Other Apparels & Accessories peer group avearge calculated on the basis of 13 companies.

Peers in Other Apparels & Accessories


Below you can find Bhartiya International 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, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Mini Diamonds (India) ($MINID)-85.8%35.0%59.6%117.1%
Page Industries ($PAGEIND)-73.3%39.0%26.3%37.5%
Celebrity Fashions ($CELEBRITY)1.0%-8.6%35.2%-21.7%
Super Tannery ($SUPTANERY)-30.0%-1.4%0.3%34.6%
Asian Star Co ($ASTAR)10.1%34.2%32.0%-0.9%
 
Median (23 companies)-23.9%10.1%19.1%14.1%6.7%
Bhartiya International ($BIL)28.4%20.9%36.7%34.7%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Page Industries ($PAGEIND)19.9%21.1%20.5%21.5%
Rupa & Company ($RUPA)10.7%12.7%15.0%15.3%14.5%
Zodiac Clothing Co ($ZODIACLOTH)11.0%9.3%8.8%10.8%
Ashapura Intimates Fashion ($AIFL)8.9%9.5%10.5%10.7%13.7%
Tara Jewels ($TARAJEWELS)8.5%9.2%9.1%9.2%
 
Median (18 companies)7.9%7.5%5.5%5.4%5.2%
Bhartiya International ($BIL)10.6%11.4%9.2%8.9%9.5%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
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 ($TARAJEWELS)1.8%1.6%1.3%3.1%
Rupa & Company ($RUPA)4.5%1.9%3.9%1.7%2.2%
Thangamayil Jewellery ($THANGAMAYL)1.9%3.5%1.2%1.4%0.2%
 
Median (14 companies)1.9%1.5%1.3%1.1%0.7%
Bhartiya International ($BIL)4.5%4.5%3.9%1.8%2.1%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
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%23.8%
Ashapura Intimates Fashion ($AIFL)21.7%24.1%19.1%23.4%39.9%
 
Median (40 companies)8.8%9.3%7.2%10.9%7.7%
Bhartiya International ($BIL)10.4%13.0%10.6%11.2%12.8%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Thangamayil Jewellery ($THANGAMAYL)2.2x2.2x2.6x11.9x61.2x
Shrenuj & Co ($SHRENUJ)8.6x9.3x11.2x11.7x
Pearl Global Industries ($PGIL)8.4x4.5x4.7x7.0x2.7x
C. Mahendra Exports ($CMAHENDRA)4.1x4.5x4.9x6.0x
Asian Star Co ($ASTAR)8.2x7.1x7.1x5.9x4.8x
 
Median (24 companies)2.7x2.2x2.7x0.0x0.4x
Bhartiya International ($BIL)2.7x2.3x3.2x3.5x3.1x


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