Is Astral Poly Technik a solid growth stock? - The numbers tells it is
04-06-2015 • About Astral Poly Technik (
$ASTRAL) • By InTwits
Astral Poly Technik is a fast-growing stock in Plastic Products industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Astral Poly Technik showed growth in the last financial year. The company's revenue surged on 32.4% in FY2015. EBITDA also increased: 5.22% for the same period.
In the longer period the company showed fast revenue growth of 34.9% from FY2012 to FY2015 annually. EBITDA surged on 26.7% from FY2012 to FY2015 annually.
Astral Poly Technik ($ASTRAL) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 4,113 | 5,827 | 8,252 | 10,796 | 14,299 |
|---|
| Revenue growth, % | | 41.7% | 41.6% | 30.8% | 32.4% |
|---|
| SG&A, % | | | | | 3.54% |
|---|
| EBITDA | 554 | 828 | 1,172 | 1,600 | 1,683 |
|---|
| EBITDA growth, % | | 49.4% | 41.5% | 36.5% | 5.2% |
|---|
| EBITDA margin, % | 13.5% | 14.2% | 14.2% | 14.8% | 11.8% |
|---|
| Net Income | 328 | 395 | 606 | 789 | 759 |
|---|
| Net Income margin, % | 7.99% | 6.78% | 7.35% | 7.31% | 5.31% |
|---|
| |
| CAPEX | 383 | 696 | 696 | 924 | 858 |
|---|
| CAPEX/Revenue, % | 9.30% | 11.9% | 8.43% | 8.56% | 6.00% |
|---|
| Debt | 343 | 938 | 923 | 1,420 | 2,026 |
|---|
| Cash | 102 | 110 | 115 | 9 | 115 |
|---|
| Net Debt/EBITDA | 0.4x | 1.0x | 0.7x | 0.9x | 1.1x |
|---|
| |
| ROIC, % | 22.6% | 29.3% | 31.1% | 33.3% | 19.7% |
|---|
| ROE, % | 24.8% | 23.8% | 28.5% | 28.4% | 16.2% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 14.8% in FY2014 to 11.8% in FY2015. If we look for the longer period the company's EBITDA margin dropped on 2.40 pp from 14.2% in FY2012 to 11.8% in FY2015.
Astral Poly Technik shows attractive ROIC at 19.7% for the last 12 months which assumes stable development model. Three years ago it was higher at 29.3%. Average ROIC for the last three years was 28.0%.
Astral Poly Technik showed big decline in Net Income margin of 2 pp from 7.30% to 5.30% in FY2015. In the longer period the company showed big decline in Net Income margin of 1.50 pp from 6.80% in FY2012 to 5.30% in FY2015.
Astral Poly Technik operates at ROE of 16.2%. It's average ROE for the last three years was 24.4%.
Capital expenditures (CAPEX)
To fuel this fast growth Astral Poly Technik had to invest in CAPEX.In FY2015 Astral Poly Technik had CAPEX/Revenue of 6.00%. Astral Poly Technik's CAPEX/Revenue dropped on 5.95 pp from 11.9% in FY2012 to 6.00% in FY2015. Average CAPEX/Revenue for the last three years was 7.66%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 1.1x Net Debt/EBITDA. In the last 3 years leverage surged on 0.13x from 1.00x in FY2012 to 1.14x in FY2015.
Valuation vs. comparable companies
The company trades at 28.3x EV/EBITDA which is not surprisingly 103% higher than 13.9x Plastic Products industry avearge calculated based on 93 companies. The market closed today at 60.3x P/E for Astral Poly Technik which is 84.4% higher than 32.7x Plastic Products peer group avearge calculated on the basis of 8 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Astral Poly Technik traded at 57.7x EV/(EBITDA-CAPEX) which is 2,250% higher than 2.5x Plastic Products peer group avearge calculated on the basis of 5 companies.
Management team
Astral Poly Technik is headed by Sandeep P Engineer as a CEO.
Peers in Plastic Products
Below you can find Astral Poly Technik benchmarking vs. other companies in Plastic Products 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 |
|---|
| Max India ($MAX) | | 28.0% | 23.7% | 10.1% | 27.4% |
| Wim Plast ($WIMPLAST) | | 27.5% | 23.1% | 19.5% | 23.5% |
| Acrysil ($ACRYSIL) | | 11.3% | 29.6% | 33.8% | 19.4% |
| Shaily Engineering Plastics ($SHAILY) | | 14.9% | -16.0% | 23.3% | 19.2% |
| Fenoplast ($FENOPLAS) | | 11.4% | -1.1% | 12.6% | 8.5% |
| |
|---|
| Median (10 companies) | -18.6% | 15.3% | 23.4% | 12.6% | 8.5% |
|---|
| Astral Poly Technik ($ASTRAL) | | 41.7% | 41.6% | 30.8% | 32.4% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Acrysil ($ACRYSIL) | 19.2% | 12.4% | 16.8% | 17.5% | 19.5% |
| Wim Plast ($WIMPLAST) | 18.5% | 18.1% | 17.9% | 18.1% | 17.0% |
| Shaily Engineering Plastics ($SHAILY) | 11.5% | 14.3% | 13.9% | 16.0% | 14.8% |
| Jain Irrigation Systems ($JISLJALEQS) | 18.6% | 16.6% | 12.6% | 12.6% | 12.4% |
| Responsive Industries ($RESPONIND) | 15.4% | 13.4% | 11.5% | 10.3% | 12.2% |
| |
|---|
| Median (11 companies) | 11.1% | 11.7% | 11.2% | 11.1% | 11.8% |
|---|
| Astral Poly Technik ($ASTRAL) | 13.5% | 14.2% | 14.2% | 14.8% | 11.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 1.9% | 3.7% | | 10.7% | 17.2% |
| Flexituff International ($FLEXITUFF) | 11.0% | 10.8% | 10.3% | 15.7% | 10.0% |
| Acrysil ($ACRYSIL) | 21.2% | 7.8% | 11.0% | 9.6% | 9.3% |
| Wim Plast ($WIMPLAST) | 5.4% | 14.3% | 8.1% | 3.7% | 7.9% |
| Responsive Industries ($RESPONIND) | 18.7% | 14.7% | 10.3% | 6.9% | 3.8% |
| |
|---|
| Median (7 companies) | 5.4% | 7.8% | 8.1% | 6.9% | 7.9% |
|---|
| Astral Poly Technik ($ASTRAL) | 9.3% | 11.9% | 8.4% | 8.6% | 6.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Wim Plast ($WIMPLAST) | 31.0% | 31.8% | 31.2% | 31.0% | 31.2% |
| Acrysil ($ACRYSIL) | | 7.7% | 16.2% | 20.2% | 21.0% |
| Shaily Engineering Plastics ($SHAILY) | 12.1% | 19.5% | 15.0% | 19.3% | 15.2% |
| Flexituff International ($FLEXITUFF) | 14.7% | 18.6% | 15.9% | 11.0% | 6.9% |
| Jain Irrigation Systems ($JISLJALEQS) | 15.0% | 13.4% | 8.3% | 9.0% | 8.6% |
| |
|---|
| Median (21 companies) | 12.1% | 10.0% | 10.9% | 11.0% | 12.7% |
|---|
| Astral Poly Technik ($ASTRAL) | 22.6% | 29.3% | 31.1% | 33.3% | 19.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Flexituff International ($FLEXITUFF) | 3.5x | 2.2x | 3.1x | 4.3x | 5.3x |
| Jain Irrigation Systems ($JISLJALEQS) | 3.4x | 3.8x | 5.1x | 4.8x | 4.8x |
| Acrysil ($ACRYSIL) | 1.9x | 2.9x | 2.2x | 2.0x | 2.7x |
| Shaily Engineering Plastics ($SHAILY) | 4.0x | 1.9x | 1.8x | 1.9x | 2.6x |
| Responsive Industries ($RESPONIND) | 1.9x | 3.3x | 2.9x | 2.4x | 1.9x |
| |
|---|
| Median (11 companies) | 2.4x | 2.2x | 2.3x | 0.4x | 0.4x |
|---|
| Astral Poly Technik ($ASTRAL) | 0.4x | 1.0x | 0.7x | 0.9x | 1.1x |
