Page Industries demonstrates fast growth in fundamentals
04-06-2015 • About Page Industries (
$PAGEIND) • By InTwits
Page Industries is an attractive growth stock in Other Apparels & Accessories industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Page Industries showed fast growth in the last financial year. Page Industries's revenue surged on 30.0% in FY2015. At the same time Page Industries well managed its profitability and also showed EBITDA growth of 25.2% for the same period.
In the last 3 years the company showed fast revenue growth of 31.2% from FY2012 to FY2015 annually. EBITDA surged on 30.4% from FY2012 to FY2015 annually.
Page Industries ($PAGEIND) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 4,916 | 6,834 | 8,635 | 11,877 | 15,434 |
|---|
| Revenue growth, % | | 39.0% | 26.3% | 37.5% | 30.0% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 976 | 1,441 | 1,768 | 2,551 | 3,194 |
|---|
| EBITDA growth, % | | 47.6% | 22.6% | 44.3% | 25.2% |
|---|
| EBITDA margin, % | 19.9% | 21.1% | 20.5% | 21.5% | 20.7% |
|---|
| Net Income | 585 | 900 | 1,125 | 1,538 | 1,960 |
|---|
| Net Income margin, % | 11.9% | 13.2% | 13.0% | 12.9% | 12.7% |
|---|
| |
| CAPEX | 285 | 271 | 450 | 526 | 549 |
|---|
| CAPEX/Revenue, % | 5.80% | 3.97% | 5.21% | 4.43% | 3.55% |
|---|
| Debt | 1,150 | 759 | 1,007 | 1,632 | 1,573 |
|---|
| Cash | 25 | 20 | 31 | 34 | 43 |
|---|
| Net Debt/EBITDA | 1.2x | 0.5x | 0.6x | 0.6x | 0.5x |
|---|
| |
| ROIC, % | 44.2% | 54.9% | 58.5% | 61.6% | 59.2% |
|---|
| ROE, % | 52.6% | 62.1% | 59.3% | 61.2% | 58.0% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years the company showed small EBITDA margin decline of 0.400 pp from 21.1% in FY2012 to 20.7% in FY2015.
Page Industries shows attractive ROIC at 59.2% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 54.9%. It's average level of ROIC for the last three years was 59.8%.
The company's Net Income margin decreased slightly on 0.200 pp from 12.9% to 12.7% in FY2015. In the last 3 years Page Industries's Net Income margin decreased slightly on 0.500 pp from 13.2% in FY2012 to 12.7% in FY2015.
Page Industries operates at ROE of 58.0%. Average ROE for the last three years was 59.5%.
Capital expenditures (CAPEX)
In FY2015 Page Industries had CAPEX/Revenue of 3.55%. The company showed big decline in CAPEX/Revenue of 0.418 pp from 3.97% in FY2012 to 3.55% in FY2015. Average CAPEX/Revenue for the last three years was 4.40%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.5x Net Debt/EBITDA. In the longer period the company's leverage decreased on 0.03x from 0.51x in FY2012 to 0.48x in FY2015.
Valuation vs. comparable companies
The company trades at 54.6x EV/EBITDA which is not surprisingly 292% higher than 13.9x Other Apparels & Accessories industry avearge calculated based on 133 companies. At the end of trading day today Page Industries traded at 88.1x P/E which is 198% higher than 29.6x Other Apparels & Accessories peer group avearge calculated on the basis of 13 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 65.9x EV/(EBITDA-CAPEX) which is not surprisingly 719% higher than 8.0x Other Apparels & Accessories industry avearge calculated based on 8 companies.
Peers in Other Apparels & Accessories
Below we provide Page Industries benchmarking against other companies in Other Apparels & Accessories 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 5 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Bhartiya International ($BIL) | | 28.4% | 20.9% | 36.7% | 34.7% |
| 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 ($ASTAR) | | 10.1% | 34.2% | 32.0% | -0.9% |
| |
|---|
| Median (23 companies) | 8.5% | 10.1% | 19.1% | 14.1% | 5.1% |
|---|
| Page Industries ($PAGEIND) | | 39.0% | 26.3% | 37.5% | 30.0% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Arrow Textiles ($ARROWTEX) | | | | | 25.2% |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | 13.7% |
| Cantabil Retail India ($CANTABIL) | 13.8% | -10.4% | -22.3% | | 10.4% |
| Bhartiya International ($BIL) | 10.6% | 11.4% | 9.2% | 8.9% | 9.5% |
| |
|---|
| Median (19 companies) | 7.9% | 7.5% | 5.5% | 5.4% | 5.2% |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | 20.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | 5.0% |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | 2.1% |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| Thangamayil Jewellery ($THANGAMAYL) | 1.9% | 3.5% | 1.2% | 1.4% | 0.2% |
| |
|---|
| Median (14 companies) | 1.9% | 1.5% | 1.3% | 1.1% | 0.7% |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | 3.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% |
| Tara Jewels ($TARAJEWELS) | 14.8% | 17.5% | 18.6% | 15.1% | 13.5% |
| |
|---|
| Median (40 companies) | 8.8% | 9.3% | 7.2% | 10.9% | 7.3% |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | 59.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | 61.2x |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | 13.5x |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (24 companies) | 2.7x | 2.3x | 2.9x | 0.0x | 2.1x |
|---|
| Page Industries ($PAGEIND) | 1.2x | 0.5x | 0.6x | 0.6x | 0.5x |
