The numbers tell that Nitin Spinners's growth is outstanding
10-05-2016 • About Nitin Spinners (
$NITINSPIN) • By InTwits
Have you thought about Nitin Spinners as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Nitin Spinners showed fast growth in the last financial year. Nitin Spinners's revenue surged on 24.4% in FY2016. Together with revenue growth Nitin Spinners also managed to keep EBITDA growth. EBITDA grew 30.8% for the same period.
In the longer period the company showed fast revenue growth of 19.8% from FY2013 to FY2016 annually. EBITDA surged on 16.0% from FY2013 to FY2016 annually.
Nitin Spinners ($NITINSPIN) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 4,283 | 4,461 | 4,883 | 6,165 | 7,669 |
|---|
| Revenue growth, % | | 4.1% | 9.5% | 26.2% | 24.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 451 | 879 | 941 | 1,048 | 1,371 |
|---|
| EBITDA growth, % | | 95.1% | 7.0% | 11.4% | 30.8% |
|---|
| EBITDA margin, % | 10.5% | 19.7% | 19.3% | 17.0% | 17.9% |
|---|
| Net Income | 3 | 141 | 348 | 410 | 442 |
|---|
| Net Income margin, % | 0.0708% | 3.17% | 7.12% | 6.64% | 5.76% |
|---|
| |
| CAPEX | 83 | 117 | 392 | 2,610 | 360 |
|---|
| CAPEX/Revenue, % | 1.93% | 2.61% | 8.03% | 42.3% | 4.69% |
|---|
| Debt | 2,489 | 2,066 | 1,761 | 3,476 | 2,986 |
|---|
| Cash | 1 | 3 | 1 | 7 | 6 |
|---|
| Net Debt/EBITDA | 5.5x | 2.3x | 1.9x | 3.3x | 2.2x |
|---|
| |
| ROIC, % | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
|---|
| ROE, % | 0.4% | 15.1% | 29.9% | 27.4% | 23.7% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased on 0.900 pp from 17% to 17.9% in FY2016. In the last 3 years EBITDA margin decreased on 1.80 pp from 19.7% in FY2013 to 17.9% in FY2016.
Nitin Spinners shows attractive ROIC at 17.8% for the last 12 months which assumes stable development model. During the last three years it decreased - it was 19.5% in FY2013. For the last three years the average ROIC was 19.0%.
The company showed big decline in Net Income margin of 0.800 pp from 6.60% to 5.80% in FY2016. In the last 3 years the company showed fast Net Income margin growth of 2.60 pp from 3.20% in FY2013 to 5.80% in FY2016.
Nitin Spinners operates at ROE of 23.7%. Average ROE for the last three years was 27.0%.
Capital expenditures (CAPEX)
Nitin Spinners's CAPEX/Revenue was 4.69% in FY2016. Nitin Spinners's CAPEX/Revenue surged on 2.08 pp from 2.61% in FY2013 to 4.69% in FY2016. Average CAPEX/Revenue for the last three years was 18.4%.
Leverage (Debt)
Having such a fast growth profile Nitin Spinners keeps medium debt level at 2.2x Net Debt/EBITDA. If we look for the longer period Nitin Spinners's leverage decreased on 0.17x from 2.35x in FY2013 to 2.17x in FY2016.
Valuation vs. comparable companies
At the end of trading day today Nitin Spinners traded at 4.2x EV/EBITDA which is 83% lower than 25.0x Textiles peer group avearge calculated on the basis of 451 companies. At the end of trading day today Nitin Spinners traded at 6.4x P/E which is 72.8% lower than 23.7x Textiles peer group avearge calculated on the basis of 46 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 5.8x EV/(EBITDA-CAPEX) for Nitin Spinners which is 72.4% lower than 20.8x Textiles peer group avearge calculated on the basis of 16 companies.
Peers in Textiles
Below we provide Nitin Spinners benchmarking against other companies in Textiles 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Olympia Industries ($OLYMPTX) | -58.0% | -96.6% | 74,809.1% | 1,749.9% | |
| Shri Dinesh Mills ($SHRIDINE) | 5.0% | 5.1% | -76.5% | 304.9% | |
| Santaram Spinners ($SANTASPN) | 6.0% | 60.7% | -40.9% | 112.0% | |
| Asahi Industries ($ASAHIIND) | 36.2% | 23.0% | 24.4% | 103.9% | |
| Blue Chip Tex Industries ($BLUECHIPT) | | 12.9% | 29.9% | 56.1% | 23.7% |
| |
|---|
| Median (73 companies) | 4.8% | 10.0% | 14.4% | -0.5% | 8.8% |
|---|
| Nitin Spinners ($NITINSPIN) | | 4.1% | 9.5% | 26.2% | 24.4% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Sil Investments ($SILINV) | | | | 93.8% | |
| Swadeshi Polytex ($SWADPOL) | | | | 64.4% | |
| Binny ($BINNY) | | | | 60.9% | |
| Ruby Mills ($RUBYMILLS) | 28.3% | 25.1% | 28.6% | 29.3% | |
| Premier Synthetics ($PREMSYN) | | | | 25.9% | |
| |
|---|
| Median (84 companies) | 6.3% | 9.5% | 9.5% | 7.2% | 7.4% |
|---|
| Nitin Spinners ($NITINSPIN) | 10.5% | 19.7% | 19.3% | 17.0% | 17.9% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Maharaja Shree Umaid Mills ($MAHASHR) | 18.6% | 24.1% | 6.8% | 16.8% | |
| Jindal Worldwide ($JINDWORLD) | 3.0% | 10.5% | 20.7% | 11.6% | |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | |
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 3.4% | 1.8% | 5.6% | 10.7% | |
| |
|---|
| Median (20 companies) | 3.4% | 5.9% | 6.7% | 6.3% | 12.0% |
|---|
| Nitin Spinners ($NITINSPIN) | 1.9% | 2.6% | 8.0% | 42.3% | 4.7% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Maharaja Shree Umaid Mills ($MAHASHR) | -0.5% | 9.2% | 8.3% | 20.4% | |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | |
| Arvind ($ARVIND) | 11.3% | 11.2% | 13.7% | 13.2% | |
| Visagar Polytex ($VIVIDHA) | 8.7% | 7.1% | 7.1% | 13.0% | |
| |
|---|
| Median (126 companies) | 3.5% | 9.0% | 8.9% | 9.0% | 16.3% |
|---|
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | |
| Dcm ($DCM) | 13.5x | 3.5x | 3.7x | 5.5x | |
| Nahar Spinning Mills ($NAHARSPING) | 70.8x | 3.8x | 3.2x | 4.9x | |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | |
| |
|---|
| Median (69 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 1.6x |
|---|
| Nitin Spinners ($NITINSPIN) | 5.5x | 2.3x | 1.9x | 3.3x | 2.2x |
