Ashapura Minechem is an attractive growth stock: revenue grew 39.0% and EBITDA 52.5% annually over the last three years
02-06-2015 • About Ashapura Minechem (
$ASHAPURMIN) • By InTwits
Ashapura Minechem is a fast-growing stock in Mining industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Ashapura Minechem showed growth in the last financial year. Ashapura Minechem's revenue surged on 61.8% in FY2015. The growth also happened in EBITDA of 51.2% for the same period.
In the longer period the company showed fast revenue growth of 39.0% from FY2012 to FY2015 annually. EBITDA surged on 52.5% from FY2012 to FY2015 annually.
Ashapura Minechem ($ASHAPURMIN) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 6,356 | 6,526 | 7,719 | 10,832 | 17,528 |
|---|
| Revenue growth, % | | 2.7% | 18.3% | 40.3% | 61.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 2,148 | 766 | 1,321 | 1,798 | 2,719 |
|---|
| EBITDA growth, % | | -64.3% | 72.4% | 36.2% | 51.2% |
|---|
| EBITDA margin, % | 33.8% | 11.7% | 17.1% | 16.6% | 15.5% |
|---|
| Net Income | -6,021 | -336 | 441 | 1,742 | -365 |
|---|
| Net Income margin, % | -94.7% | -5.16% | 5.72% | 16.1% | -2.08% |
|---|
| |
| CAPEX | 196 | 420 | 409 | 399 | 1,103 |
|---|
| CAPEX/Revenue, % | 3.09% | 6.44% | 5.30% | 3.68% | 6.30% |
|---|
| Debt | 4,422 | 4,477 | 4,125 | 2,850 | 1,881 |
|---|
| Cash | 233 | 131 | 279 | 318 | 492 |
|---|
| Net Debt/EBITDA | 2.0x | 5.7x | 2.9x | 1.4x | 0.5x |
|---|
| |
| ROIC, % | 45.1% | 39.1% | 87.6% | 90.5% | 181.4% |
|---|
| ROE, % | | | | | |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 16.6% in FY2014 to 15.5% in FY2015. In the longer period Ashapura Minechem's EBITDA margin surged on 3.80 pp from 11.7% in FY2012 to 15.5% in FY2015.
We call Ashapura Minechem an attractive growth stock as together with the growth it delivers high ROIC at 181%. During the last three years it surged - it was 39.1% in FY2012. It's average level of ROIC for the last three years was 120%.
The company's Net Income margin dropped on 18.2 pp from 16.1% to -2.10% in FY2015. In the longer period the company's Net Income margin surged on 3.10 pp from -5.20% in FY2012 to -2.10% in FY2015.
Ashapura Minechem operates at ROE of .
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.The company's CAPEX/Revenue was 6.30% in FY2015. The company showed small CAPEX/Revenue decline of 0.142 pp from 6.44% in FY2012 to 6.30% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.09%.
Leverage (Debt)
The company has low debt level at 0.5x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company showed big decline in leverage of 5.17x from 5.68x in FY2012 to 0.51x in FY2015.
Valuation vs. comparable companies
The market closed today at 2.6x EV/EBITDA for Ashapura Minechem which is 86.3% lower than 18.8x Mining peer group avearge calculated on the basis of 234 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 4.3x EV/(EBITDA-CAPEX) for Ashapura Minechem which is 789% higher than 0.5x Mining peer group avearge calculated on the basis of 7 companies.
Management team
Ashapura Minechem is run by Rajnikant Pajwani as a CEO.
Peers in Mining
Below we provide Ashapura Minechem benchmarking against other companies in Mining 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 |
|---|
| Moil ($MOIL) | 20.9% | -21.1% | 7.5% | 5.6% | |
| 20 Microns ($20MICRONS) | -40.1% | 18.4% | 3.6% | 5.0% | |
| |
|---|
| Median (2 companies) | -9.6% | -1.4% | 5.6% | 5.3% | |
|---|
| Ashapura Minechem ($ASHAPURMIN) | | 2.7% | 18.3% | 40.3% | 61.8% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Moil ($MOIL) | 67.5% | 48.3% | 45.2% | 54.6% | |
| 20 Microns ($20MICRONS) | 10.6% | 12.7% | 12.4% | 9.2% | |
| |
|---|
| Median (2 companies) | 39.1% | 30.5% | 28.8% | 31.9% | |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 33.8% | 11.7% | 17.1% | 16.6% | 15.5% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Moil ($MOIL) | 4.3% | 4.6% | 4.9% | 7.5% | |
| |
|---|
| Median (1 company) | 5.8% | 9.9% | 4.9% | 7.5% | |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 3.1% | 6.4% | 5.3% | 3.7% | 6.3% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Moil ($MOIL) | 38.6% | 17.7% | 15.6% | 17.8% | |
| Southern Magnesium & Chemicals ($SOUTHMG) | | | | | |
| 20 Microns ($20MICRONS) | 13.7% | 15.8% | 13.4% | | |
| Yantra Natural Resources ($YANTRA) | | | | | |
| |
|---|
| Median (4 companies) | 26.1% | 16.8% | 14.5% | 17.8% | |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 45.1% | 39.1% | 87.6% | 90.5% | 181.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 20 Microns ($20MICRONS) | 4.0x | 3.9x | 3.6x | 0.0x | |
| Moil ($MOIL) | -0.0x | -0.0x | -0.1x | -5.0x | |
| Yantra Natural Resources ($YANTRA) | -0.1x | | | -17.9x | |
| |
|---|
| Median (3 companies) | -0.0x | 3.9x | 3.6x | -5.0x | |
|---|
| Ashapura Minechem ($ASHAPURMIN) | 2.0x | 5.7x | 2.9x | 1.4x | 0.5x |
