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Looking for a profitable fast-growing stock? Look at Ccl Products (India)

02-06-2015 • About Ccl Products (India) ($CCL) • By InTwits

Ccl Products (India) is a growth stock in Tea & Coffee industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Ccl Products (India) showed fast growth in the last financial year. Ccl Products (India)'s revenue surged on 22.8% in FY2015. At the same time the company well managed its profitability and also showed EBITDA growth of 17.6% for the same period.

In the longer period Ccl Products (India) showed fast revenue growth of 20.6% from FY2012 to FY2015 annually. EBITDA surged on 21.2% from FY2012 to FY2015 annually.

Ccl Products (India) ($CCL) financials for the last 5 years

mln. INR FY2011 FY2012 FY2013 FY2014 FY2015
Revenue3,6395,0226,5077,1688,806
Revenue growth, %38.0%29.6%10.2%22.8%
SG&A, %
EBITDA6561,0201,3071,5441,815
EBITDA growth, %55.5%28.1%18.1%17.6%
EBITDA margin, %18.0%20.3%20.1%21.5%20.6%
Net Income265362474644909
Net Income margin, % 7.27%7.22%7.29%8.99%10.3%
 
CAPEX437560378597207
CAPEX/Revenue, %12.0%11.1%5.80%8.32%2.35%
Debt2,5012,6793,0202,9212,292
Cash692275326248
Net Debt/EBITDA3.7x2.6x2.3x1.7x1.1x
 
ROIC, %9.7%16.1%18.0%19.7%23.0%
ROE, %12.7%15.9%18.3%20.4%23.5%

Profitability and return on investment


EBITDA margin declined slightly from 21.5% in FY2014 to 20.6% in FY2015. If we look for the longer period Ccl Products (India) showed small growth in EBITDA margin of 0.300 pp from 20.3% in FY2012 to 20.6% in FY2015.

We call Ccl Products (India) an attractive growth stock as together with the growth it delivers high ROIC at 23.0%. During the last three years it surged - it was 16.1% in FY2012. It's average ROIC for the last three years was 20.2%.

Ccl Products (India) showed fast Net Income margin growth of 1.30 pp from 9% to 10.3% in FY2015. In the last 3 years Ccl Products (India)'s Net Income margin surged on 3.10 pp from 7.20% in FY2012 to 10.3% in FY2015.

Ccl Products (India) operates at ROE of 23.5%. It's average level of ROE for the last three years was 20.7%.

Capital expenditures (CAPEX)


The company's CAPEX/Revenue was 2.35% in FY2015. CAPEX/Revenue dropped on 8.80 pp from 11.1% in FY2012 to 2.35% in FY2015. Average CAPEX/Revenue for the last three years was 5.49%.

Leverage (Debt)


The company has medium debt level at 1.1x Net Debt/EBITDA to maintain high growth. In the last 3 years the company showed big decline in leverage of 1.48x from 2.60x in FY2012 to 1.13x in FY2015.

Valuation vs. comparable companies


The market closed today at 14.2x EV/EBITDA for Ccl Products (India) which is 2.05% higher than 13.9x Tea & Coffee peer group avearge calculated on the basis of 35 companies. The market closed today at 26.1x P/E for Ccl Products (India) which is 21.3% lower than 33.2x Tea & Coffee peer group avearge calculated on the basis of 5 companies.

Peers in Tea & Coffee


Below you can find Ccl Products (India) benchmarking vs. other companies in Tea & Coffee 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
Rossell India ($ROSSELLIND)-51.1%5.4%27.9%33.6%
Andrew Yule & Company ($ANDREWYU)-40.5%17.1%4.7%19.3%
Warren Tea ($WARRENTEA)40.0%0.9%-44.0%17.7%
Bombay Burmah Trading Corp ($BBTC)15.7%10.0%11.5%12.7%
Diana Tea Co ($DIANATEA)-17.9%-12.6%-11.1%9.9%
 
Median (11 companies)-34.9%14.8%7.4%7.8%4.9%
Ccl Products (India) ($CCL)38.0%29.6%10.2%22.8%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Rossell India ($ROSSELLIND)32.2%31.0%27.5%26.5%
Warren Tea ($WARRENTEA)19.0%7.9%17.7%21.8%
Mcleod Russel India ($MCLEODRUSS)28.5%27.5%23.2%20.4%
Tata Coffee ($TATACOFFEE)19.8%12.8%19.2%19.9%20.2%
B & A ($BNALTD)18.4%17.1%17.1%14.8%
 
Median (11 companies)14.1%8.4%13.7%9.7%12.7%
Ccl Products (India) ($CCL)18.0%20.3%20.1%21.5%20.6%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Rossell India ($ROSSELLIND)3.3%11.0%6.7%14.8%
Mcleod Russel India ($MCLEODRUSS)4.9%10.0%6.0%9.4%
Jay Shree Tea & Industries ($JAYSHREETEA)10.7%4.5%3.7%6.4%3.5%
Tata Coffee ($TATACOFFEE)1.9%3.2%4.3%4.0%3.6%
Tata Global Beverages ($TATAGLOBAL)1.7%2.0%2.4%2.6%
 
Median (9 companies)4.1%4.5%3.6%2.6%3.5%
Ccl Products (India) ($CCL)12.0%11.1%5.8%8.3%2.4%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Warren Tea ($WARRENTEA)19.3%4.3%12.7%25.7%
Bombay Burmah Trading Corp ($BBTC)9.4%10.7%13.9%20.6%23.7%
Goodricke Group ($GOODRICKE)27.7%13.0%20.9%16.8%
Tata Coffee ($TATACOFFEE)15.7%10.9%16.2%14.0%14.0%
Mcleod Russel India ($MCLEODRUSS)17.5%18.6%15.7%12.9%
 
Median (14 companies)9.7%9.4%12.7%12.9%14.0%
Ccl Products (India) ($CCL)9.7%16.1%18.0%19.7%23.0%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Jay Shree Tea & Industries ($JAYSHREETEA)5.9x8.6x4.5x8.2x19.5x
Tata Coffee ($TATACOFFEE)2.7x3.6x2.6x2.7x2.5x
Andrew Yule & Company ($ANDREWYU)4.3x2.1x5.4x1.9x
Rossell India ($ROSSELLIND)0.4x0.0x1.9x1.5x
Bombay Burmah Trading Corp ($BBTC)4.2x3.0x1.8x1.0x0.7x
 
Median (13 companies)1.6x1.7x1.8x0.7x1.6x
Ccl Products (India) ($CCL)3.7x2.6x2.3x1.7x1.1x


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