The growth of Anil is hard to miss
06-06-2015 • About Anil (
$ANILLTD) • By InTwits
Have you thought about Anil as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Anil showed fast growth in the last financial year. The company's revenue surged on 17.5% in FY2015. Together with revenue growth Anil also managed to keep EBITDA growth. EBITDA grew 19.6% for the same period.
If we look for the longer period the company showed fast revenue growth of 14.6% from FY2012 to FY2015 annually. EBITDA surged on 13.2% from FY2012 to FY2015 annually.
Anil ($ANILLTD) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 5,041 | 6,447 | 7,060 | 8,249 | 9,691 |
|---|
| Revenue growth, % | | 27.9% | 9.5% | 16.8% | 17.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 879 | 1,166 | 1,194 | 1,414 | 1,691 |
|---|
| EBITDA growth, % | | 32.7% | 2.3% | 18.4% | 19.6% |
|---|
| EBITDA margin, % | 17.4% | 18.1% | 16.9% | 17.1% | 17.4% |
|---|
| Net Income | 401 | 504 | 458 | 483 | 553 |
|---|
| Net Income margin, % | 7.96% | 7.82% | 6.49% | 5.85% | 5.70% |
|---|
| |
| CAPEX | 0 | 0 | 470 | 430 | 1,117 |
|---|
| CAPEX/Revenue, % | 0% | 0% | 6.66% | 5.21% | 11.5% |
|---|
| Debt | 2,431 | 2,655 | 4,152 | 5,385 | 6,770 |
|---|
| Cash | 45 | 88 | 125 | 60 | 27 |
|---|
| Net Debt/EBITDA | 2.7x | 2.2x | 3.4x | 3.8x | 4.0x |
|---|
| |
| ROIC, % | | 23.6% | 17.9% | 16.4% | 16.2% |
|---|
| ROE, % | | 32.6% | 21.7% | 18.9% | 18.4% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company's EBITDA margin increased slightly on 0.300 pp from 17.1% to 17.4% in FY2015. In the last 3 years Anil's EBITDA margin decreased slightly on 0.700 pp from 18.1% in FY2012 to 17.4% in FY2015.
We call Anil an attractive growth stock as together with the growth it delivers high ROIC at 16.2%. During the last three years it dropped - it was 23.6% in FY2012. It's average ROIC for the last three years was 16.8%.
Net Income margin decreased slightly on 0.100 pp from 5.80% to 5.70% in FY2015. If we look for the longer period Anil showed big decline in Net Income margin of 2.10 pp from 7.80% in FY2012 to 5.70% in FY2015.
Anil operates at ROE of 18.4%. For the last three years the average ROE was 19.7%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.Anil's CAPEX/Revenue was 11.5% in FY2015. Anil's CAPEX/Revenue surged on 11.5 pp from 0% in FY2012 to 11.5% in FY2015. Average CAPEX/Revenue for the last three years was 7.80%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 4.0x Net Debt/EBITDA. In the longer period Anil's leverage surged on 1.79x from 2.20x in FY2012 to 3.99x in FY2015.
Peers in Specialty Chemicals
Below we provide Anil benchmarking against other companies in Specialty Chemicals 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 |
|---|
| Kiri Industries ($KIRIINDUS) | | 7.9% | -86.5% | 24.8% | 34.7% |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | | 14.1% | 4.7% | 19.5% | 30.0% |
| Keltech Energies ($KELENRG) | | 60.2% | -13.4% | -0.4% | 24.4% |
| Dai-Ichi Karkaria ($DAICHI) | | 20.7% | 31.4% | 45.4% | 22.8% |
| Nitta Gelatin India ($NITTAGELA) | | 21.2% | 27.8% | -5.5% | 21.2% |
| |
|---|
| Median (25 companies) | -46.2% | 19.8% | 14.1% | 11.3% | 10.9% |
|---|
| Anil ($ANILLTD) | | 27.9% | 9.5% | 16.8% | 17.5% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.7% | 21.8% | 22.7% | 24.9% |
| Indian Toners & Developers ($INDTONER) | | | | | 22.6% |
| Solar Industries India ($SOLARINDS) | 18.1% | 18.5% | 17.5% | 17.9% | 19.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.1% | 18.0% | 15.5% | 17.4% | 17.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% |
| |
|---|
| Median (29 companies) | 11.2% | 10.6% | 11.2% | 10.6% | 10.9% |
|---|
| Anil ($ANILLTD) | 17.4% | 18.1% | 16.9% | 17.1% | 17.4% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Adi Finechem ($ADIFINCHM) | 8.2% | 7.3% | 4.8% | 12.6% | 16.9% |
| Solar Industries India ($SOLARINDS) | 14.2% | 13.0% | 9.9% | 12.3% | 10.3% |
| Pidilite Industries ($PIDILITIND) | 4.8% | 5.2% | 2.9% | 4.4% | 8.5% |
| Oricon Enterprises ($ORICON) | 8.6% | 10.2% | 6.2% | 4.7% | 7.9% |
| Vinati Organics ($VINATIORGA) | 11.1% | 13.6% | 28.2% | 4.2% | 7.4% |
| |
|---|
| Median (16 companies) | 7.2% | 5.1% | 4.5% | 4.3% | 4.9% |
|---|
| Anil ($ANILLTD) | | | 6.7% | 5.2% | 11.5% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Vinati Organics ($VINATIORGA) | 31.4% | 29.6% | 26.2% | 30.6% | 34.8% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% |
| Pidilite Industries ($PIDILITIND) | 29.3% | 27.4% | 29.3% | 29.8% | 29.0% |
| Adi Finechem ($ADIFINCHM) | 27.6% | 30.6% | 29.8% | 46.4% | 26.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 22.8% | 20.0% | 16.3% | 20.8% | 25.7% |
| |
|---|
| Median (32 companies) | 15.2% | 14.7% | 14.8% | 11.2% | 17.8% |
|---|
| Anil ($ANILLTD) | | 23.6% | 17.9% | 16.4% | 16.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Kiri Industries ($KIRIINDUS) | 3.9x | 8.2x | 31.3x | 10.6x | 7.7x |
| Jayant Agro-Organics ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
| Oricon Enterprises ($ORICON) | 1.3x | 1.2x | 1.0x | 1.7x | 3.2x |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.2x | 2.4x | 5.1x | 3.2x | 3.2x |
| Meghmani Organics ($MEGH) | 4.8x | 4.2x | 3.7x | 4.3x | 3.1x |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.0x |
|---|
| Anil ($ANILLTD) | 2.7x | 2.2x | 3.4x | 3.8x | 4.0x |
