Eye on Bharat Rasayan with its long history of healthy growth
05-06-2015 • About Bharat Rasayan (
$BHARATRA) • By InTwits
Pay attention to Bharat Rasayan as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Bharat Rasayan showed fast growth in the last financial year. Bharat Rasayan's revenue surged on 21.4% in FY2015. In addition to revenue Bharat Rasayan also keeps delivering EBITDA growth. It was 23.7% in FY2015
If we look for the longer period Bharat Rasayan showed fast revenue growth of 45.7% from FY2012 to FY2015 annually. EBITDA surged on 65.1% from FY2012 to FY2015 annually.
Bharat Rasayan ($BHARATRA) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 938 | 1,419 | 1,876 | 3,614 | 4,388 |
|---|
| Revenue growth, % | | 51.3% | 32.1% | 92.7% | 21.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 70 | 181 | 279 | 659 | 815 |
|---|
| EBITDA growth, % | | 158.5% | 54.0% | 136.2% | 23.7% |
|---|
| EBITDA margin, % | 7.47% | 12.8% | 14.9% | 18.2% | 18.6% |
|---|
| Net Income | 59 | 98 | 96 | 201 | 317 |
|---|
| Net Income margin, % | 6.28% | 6.93% | 5.11% | 5.57% | 7.24% |
|---|
| |
| CAPEX | 28 | 467 | 778 | 257 | 134 |
|---|
| CAPEX/Revenue, % | 3.03% | 32.9% | 41.5% | 7.11% | 3.04% |
|---|
| Debt | 85 | 391 | 1,433 | 1,432 | 1,402 |
|---|
| Cash | 4 | 9 | 30 | 8 | 46 |
|---|
| Net Debt/EBITDA | 1.2x | 2.1x | 5.0x | 2.2x | 1.7x |
|---|
| |
| ROIC, % | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% |
|---|
| ROE, % | 13.6% | 20.3% | 16.6% | 27.8% | 32.5% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company's EBITDA margin increased slightly on 0.400 pp from 18.2% to 18.6% in FY2015. In the last 3 years EBITDA margin surged on 5.80 pp from 12.8% in FY2012 to 18.6% in FY2015.
Bharat Rasayan shows attractive ROIC at 26.1% for the last 12 months which assumes stable development model. During the last three years it surged - it was 22.1% in FY2012. It's average level of ROIC for the last three years was 20.6%.
Net Income margin surged on 1.60 pp from 5.60% to 7.20% in FY2015. If we look for the longer period Net Income margin increased slightly on 0.300 pp from 6.90% in FY2012 to 7.20% in FY2015.
Bharat Rasayan operates at ROE of 32.5%. For the last three years the average ROE was 25.7%.
Capital expenditures (CAPEX)
In FY2015 Bharat Rasayan had CAPEX/Revenue of 3.04%. CAPEX/Revenue dropped on 29.9 pp from 32.9% in FY2012 to 3.04% in FY2015. It's average CAPEX/Revenue for the last three years was 17.2%.
Leverage (Debt)
The company has medium debt level at 1.7x Net Debt/EBITDA to maintain high growth. In the last 3 years Bharat Rasayan's leverage dropped on 0.44x from 2.11x in FY2012 to 1.66x in FY2015.
Valuation vs. comparable companies
The market closed today at 5.8x EV/EBITDA for Bharat Rasayan which is 58.8% lower than 13.9x peer group avearge calculated on the basis of 1905 companies. The market closed today at 10.5x P/E for Bharat Rasayan which is 59.7% lower than 26.1x peer group avearge calculated on the basis of 11 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 6.9x EV/(EBITDA-CAPEX) for Bharat Rasayan which is 47.3% higher than 4.7x peer group avearge calculated on the basis of 8 companies.
Peers in
Below we provide Bharat Rasayan benchmarking against other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | | 6.5% | -14.4% | -1.2% | 49.3% |
| Indbulbbph ($INDBULBBPH) | | -3.2% | -6.5% | 33.5% | 49.2% |
| Monetbbph ($MONETBBPH) | | 22.3% | 3.7% | 11.6% | 40.8% |
| Asleyf ($ASLEYF) | | 15.5% | -3.3% | -8.0% | 33.6% |
| Jklakbbph ($JKLAKBBPH) | | 29.9% | 19.6% | 0.0% | 12.2% |
| |
|---|
| Median (15 companies) | -48.2% | 17.4% | 8.5% | 3.5% | 8.4% |
|---|
| Bharat Rasayan ($BHARATRA) | | 51.3% | 32.1% | 92.7% | 21.4% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | | | | | 53.4% |
| Paushak ($PAUSHAK) | | | | | 25.6% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 24.7% |
| Indbulbbph ($INDBULBBPH) | 27.9% | 36.7% | 34.6% | 29.5% | 23.5% |
| Uplbbph ($UPLBBPH) | 18.8% | 18.2% | 18.3% | 18.8% | 20.0% |
| |
|---|
| Median (19 companies) | 14.8% | 15.4% | 11.3% | 14.5% | 10.7% |
|---|
| Bharat Rasayan ($BHARATRA) | 7.5% | 12.8% | 14.9% | 18.2% | 18.6% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Monetbbph ($MONETBBPH) | 9.6% | 131.4% | 5.2% | 139.2% | 89.2% |
| Jklakbbph ($JKLAKBBPH) | 23.6% | 28.5% | 28.8% | 24.6% | 23.6% |
| Rilbbph ($RILBBPH) | 12.7% | 4.6% | 7.7% | 13.8% | 16.9% |
| Gkw ($GKW) | | | | | 15.5% |
| Paushak ($PAUSHAK) | | | | | 12.3% |
| |
|---|
| Median (16 companies) | 7.1% | 8.6% | 5.2% | 3.6% | 5.2% |
|---|
| Bharat Rasayan ($BHARATRA) | 3.0% | 32.9% | 41.5% | 7.1% | 3.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Uplbbph ($UPLBBPH) | 16.3% | 17.1% | 15.9% | 18.2% | 22.1% |
| Ginni Filaments ($GINNIFIL) | 11.6% | -1.0% | 15.2% | 21.6% | 12.8% |
| Rane Brake Lining ($RANEBRAKE) | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% |
| Asleyf ($ASLEYF) | 13.6% | 12.2% | 5.8% | -0.5% | 7.6% |
| Jklakbbph ($JKLAKBBPH) | 8.4% | 12.4% | 14.2% | 5.9% | 7.3% |
| |
|---|
| Median (25 companies) | 10.9% | 8.4% | 5.8% | 5.3% | 1.3% |
|---|
| Bharat Rasayan ($BHARATRA) | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Monetbbph ($MONETBBPH) | 5.3x | 9.8x | 16.3x | 27.4x | 140.3x |
| Indbulbbph ($INDBULBBPH) | 8.5x | 4.3x | 4.8x | 5.5x | 9.6x |
| Jklakbbph ($JKLAKBBPH) | 3.0x | 2.1x | 2.3x | 5.3x | 5.5x |
| Asleyf ($ASLEYF) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Rane Engine Valve ($RANENGIN) | 1.7x | 2.1x | 11.3x | 4.5x | 4.8x |
| |
|---|
| Median (14 companies) | 1.8x | 2.1x | 2.2x | 2.7x | 3.7x |
|---|
| Bharat Rasayan ($BHARATRA) | 1.2x | 2.1x | 5.0x | 2.2x | 1.7x |
